The global aluminum foil market is poised to show strong growth over the forecast period. The packaging industry is anticipated to demonstrate persistently steady development at a considerable volume. The year on year demand for the aluminum foil market is expected to exceed 4%.
Aluminum is a non-ferrous metal which is extensively used in packaging materials. It forms an exceptional material for creating varied types of containers. It has proved to be an excellent material for protecting food, be it on shelf, cooler or freezer. They are even ideal for ready to serve-in-table purpose. They are the only container which could be used in convection, conventional, microwave, toaster ovens and boilers. It is economical and easy to transport because of its lightweight. Its natural qualities of acting as a barrier and impermeability make it versatile and of real benefit to the consumer. The industry is poised for substantial growth over the next few years owing to the factors as mentioned earlier.
Aluminum foils are easy to use, recyclable and consumer friendly product. Consumers can directly heat or freeze food products in the foil container. Its applications include personal care, confectionery, healthcare, beverage and varied industrial usage. It is widely used by food industry to pack roasting pans, baking pans, pizza pans, and cookie sheets. It comes in various sizes and shapes and can be easily customized to suit customer demand.
This market is poised to grow as packaging sales are expected to grow owing to the increase in the sophisticated packaging of consumer goods. Persistent growth in demand for chocolates and snacks along with ever-rising demand in the pharmaceutical sector are the major drivers for the market. Increasing focus on developing sustainable and environment-friendly product paired with the rise in disposable income leading to increasing consumer spending is anticipated to drive growth. The change in lifestyle amongst the growing population which also includes a change in food habits has resulted in enhanced demand for foil packaging. It allows uniform heating of food and permits flexible and fast food preparation, thus helping in keeping up with today’s fast-paced lifestyle. Aluminum containers being leak resistant keeps food fresh, takes up little space and can be reused increasing its application in food service companies and take away restaurants. These foil finds its application even amongst the low-income class
as they are inexpensive and convenient to use. Since it is recyclable, it can save a significant amount of energy cost and the saved cost, in turn, could be used to generate employment by the Municipal Government.
The prospects for this industry rely much on technological advancement to manufacture improved quality foil. Increased productivity of mills coupled with a decrease in plant loss to reduce cost and increased exports would help in flourishing this industry. Further, being a highly conductive material, these foils can speed up baking and freezing process compared to other packaging materials which may spur demand over the next few years.
The use and demand for aluminum foil in pharmaceutical and drug industry is poised to grow at a faster rate than any other sector which may be primarily attributed to increasing demand to secure medicines safely. It is followed by increased demand across food packaging industry which includes railway catering services and chocolate production. Usage of aluminum in the manufacture of lamitudes is anticipated to increase as lamitudes might replace collapsible tubes in the future. In the case of milk, the consumption of foil for making milk cap bottles may decline over the next few years as milk tetra pack are expected to replace the milk bottle market.
The market can be segmented into packaging applications and non-packaging applications. Packaging applications involve protecting the food from climatic, chemical and physical hazards. Non-packaging applications which utilize the property of conductivity of this foil include cable and capacitors wraps, the heat exchanging tube fins for air conditioners.
China accounts for the largest share of the global aluminum market which may be attributed to the ability of Chinese manufacturers to produce at a lower cost than international rivals to seize market share. Other developing regions such as India has a higher cost of this foil compared to other areas owing to the higher price of raw materials and higher excise duty value. The developing nations with their vast populations and untapped market condition provide unparallel growth prospect for companies.
Key industry participants include Velcro Group, TetraPak, Southern Aluminium Industry Co. Ltd., Rajasthan Foils Pvt. Ltd, Plus Pack, Hindalco Industries Limited, Flexifoil Packaging, Eurofoil, Ekco, DeLaval, Danpak International B.V, Dalia Packaging, Comital Group, Bachmann Aluminium GmbH, Ardagh Group, Amcor, Alupac, Alufoil Products Pvt. Ltd., Aluflexpack, Alcoa, Aditya Birla Group and ACM Carcano. Major foil manufacturers are the member of Aluminum Foil Container Manufacturers Association. This group is dedicated to producing quality product and enhances the usability of the product to the consumers.
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