Metal Packaging Market Report

As sustainability becomes a priority for consumers and alike businesses, the demand for sustainable packaging solutions is rising. Acquisitions are enhancing manufacturers and brand owners who require innovative and reliable packaging solutions to develop sustainable coating options that align with these market trends. For instance, in October 2024, Sherwin-Williams company announced the acquisition of Henkel's Metal Packaging Coatings Division.  The acquisition allows it to expand its product offerings, integrating established brands' ability to serve various segments within the food and household product markets more effectively. By incorporating Henkel's technologies and manufacturing facilities located in Germany and Mexico, Sherwin-Williams strengthens its operational footprint. This expansion is expected to improve production efficiency and innovation in high-performance coatings for light metal packaging.

The new centre addresses the growing demand for advanced, sustainable metal packaging solutions, fostering collaboration and innovation to enhance customer value. For instance, in May 2024, Sonoco Products Company launched a new, multi-million-dollar metal packaging technical & engineering centre in Columbus, Ohio, at 11,000 square feet. The modern laboratory is well complemented by the latest prototyping equipment, training rooms, and spaces for collaboration. This centre supports Sonoco's commitment to sustainable metal packaging by offering design support, technical services, process development, engineering, and training. Ernest Haynes, President of Sonoco's metal packaging business, emphasized its role in fostering collaboration among can makers, brand owners, and partners to enhance technological advances and deliver greater customer value.

Consumers are increasingly concerned about sustainability with a demand for innovative eye-catching aesthetic packaging that stands out. Market players are collaborating aims to enhance consumer engagement through visually striking packaging, using aluminium, as it is fully recyclable and often made from recycled materials. For instance, in February 2024, Ardagh announced the partnership with Britvic to develop a new Tango Mango cans range offering innovative high-end designs designed to elevate the customer experience by presenting beautiful design options. This partnership reflects a trend towards premium packaging solutions in the beverage sector catering to consumer preference for visually appealing products.

A lot of restraining factors are associated with metal packaging. Some of them can impact its growth and adoption in certain markets. One of the significant challenges is aluminium and steel being high raw materials cost. While the commodity-based prices for such materials are often plagued by volatility around global supply chains, geopolitical relations, and uncertain demand, metal packaging has additional competition from emerging packaging alternatives composed of plastics, glass, or flexible packaging-all of which will be lighter-weight and lower cost. Metal materials, particularly steel, exhibit poor chemical stability and low resistance to alkali and acids. This can lead to corrosion and rusting, especially when packaging acidic food products. Such deterioration can compromise product quality and safety, and limiting the applications of metal packaging can limit its growth and adoption in certain markets.

As the demand for on-the-go, ready-to-eat products grows, consumers become more health-conscious, they prefer packaged foods that can preserve freshness and nutritional value with features like easy-open lids. Metal packaging, especially aluminium, and steel, protects contents from light, air, and moisture and extends shelf life. Additionally, environmental awareness boosts the appeal of metal packaging due to its recyclability and eco-friendly properties. For instance, in December 2023, Vinca announced the launch of an organic wine range from Sicily in 187ml cans, filled by Los Bucaneros, a canning company operating in France and Iberia. The cans, developed with AMP's design team, offer sustainable, lightweight, and recyclable packaging. AMP’s Wine Cans preserve quality with airtight seals, gaining prominence in wine packaging.

Increase global regulations to reduce bisphenols like BPA and PVC in food packaging materials due to potential health risks, promote sustainability, enhance product performance, and improve operational efficiency.   Companies are launching new products striving to achieve sustainability targets by adopting coatings that reduce environmental impact. For instance, in July 2024, AkzoNobel announced the launch of the Securshield 500 series of coatings for metal packaging. These coatings are designed to be free from bisphenols and PVC, addressing regulatory changes and sustainability demands in the food packaging sector. The Securshield series integrates seamlessly into existing manufacturing processes, offering flexibility for can makers while ensuring compliance with current and future regulations.

There has been a shift in the increasing use of metal containers, offering sustainability properties, as metal packaging is highly recyclable and can be reused without loss of quality, making it an attractive option for consumers. Due to this, market players are relaunching reflecting customer feedback and market trends expanding the range and introducing new sizes. For instance, in May 2023, Roberts Metal Packaging announced the relaunch of its Softline Extreme aluminum jar collection with two new ranges deep and shallow. The Deep range now includes a 170ml option, while the Shallow range offers a 100ml pack, catering to health, beauty, and household products.

The Asia Pacific metal packaging market is expanding due to rapid urbanization, a rising middle class, and higher disposable incomes, particularly in the food and beverage sector where aluminium and steel packaging are favoured. Key markets like China, Japan, India, and South Korea are driving growth, fuelled by the increasing demand for convenience and packaged goods. Sustainability trends further support this growth, as metal packaging is highly recyclable. Additionally, premiumization and innovation in design and lighter materials are propelling market development. As industries increasingly adopt metal packaging, competition among regional and global players is intensifying.

However, gradual growth is expected in the North American metal packaging market, as food and beverage, personal care, and household industries seek the products. The U.S. dominates the market with a significant demand for metal cans for the preservation of freshness in the food and beverage industry. Sustainable packaging trends boost metal usage due to its recyclability, supporting environmental goals. The automotive and pharmaceutical industries also contribute, fuelled by the need for durable, tamper-evident packaging. Despite challenges like fluctuating raw material prices and the rise of flexible plastics, technological advancements, and circular economy initiatives are expected to sustain growth in the region’s metal packaging market.

The European metal packaging market is growing due to sectors like food and beverages, pharmaceuticals, personal care, and household products. Countries such as Germany, the UK, France, and Italy are the front-runners, because of high canned food and beverage consumption with emphasis on sustainability. Increasing EU regulations on sustainability further push metal packaging manufacturers to adopt innovative, environmentally friendly solutions. Other developments include premiumization and sustainability. The area has a huge emphasis on sustainability, and in terms of aluminium cans, people are looking to have recyclable ones, thus complying with both consumers and regulatory needs to reduce plastic waste.

The Latin American metal packaging market is experiencing significant growth, driven by increasing demand across the food, beverage, and cosmetics sectors. Brazil, Mexico, and Argentina are key contributors, with Brazil leading in beverage consumption. The market is evolving with a focus on sustainable packaging solutions, particularly recyclable metal packaging, aligning with growing environmental awareness. Innovations in durable, resistant packaging are further boosting demand. A well-established recycling infrastructure, combined with regulatory measures promoting sustainability, strengthens the market's growth. Collaborations, such as Mauser Packaging's acquisition of Taenza SA de CV, are key strategies for expansion.

The MEA metal packaging market is expanding, driven by increasing demand from the food and beverage sector, particularly in countries like Saudi Arabia, UAE, and South Africa. Key factors include growing consumption of canned foods, rising interest in personal care and chemical products, and a shift toward sustainable practices, with higher aluminium recycling rates. Additionally, technological advancements in packaging design and growing urban populations are fuelling demand for eco-friendly, durable packaging. The market is expected to grow supported by economic diversification and demographic changes in the region.