The demand for aluminum foil in the global market is expected to increase in the coming years due to its various advantages and the growing packaging industry. Aluminum foil is widely used in the food & beverages, pharmaceuticals, and cosmetic industries because of its lightweight nature, recyclability, and flexibility. Additionally, aluminum foil-based packaging provides protection against microorganisms, ultraviolet radiation, light, oil, grease, and oxygen, making it ideal for preserving food items and medicines. The increasing consumption of packaged food & beverages is further expected to drive the demand for aluminum foil. For example, the global sales volume of soft drinks reached 714.44 billion liters in 2021 and is projected to grow by 18.6% to reach 847.57 billion liters by 2026. Moreover, the Indian packaged food industry is estimated to reach USD 100 billion soon, attracting investments in the food & beverage sector. For example, Pepsi Co. India recently announced its plans to expand its Lay's potato chips plant in Mathura, U.P., India, with an investment of INR 186 crore (~USD 23.4 million), including the production of Doritos nachos chips. Packaging manufacturers are increasingly opting for metals like aluminum due to their malleability, chemical and moisture resistance, and insulation properties. This trend is expected to positively impact the demand for aluminum foil in the forecast period.
Aluminum foils are extensively utilized as positive current collectors in lithium-ion batteries due to their lightweight nature, affordability, and high specific capacity. The aluminum foil market is projected to experience growth during the forecast period, driven by the escalating global production of electric vehicles, which heavily rely on lithium-ion batteries. According to the International Energy Agency, global sales of electric vehicles surged to 6.7 million in 2021, a significant increase from the 3.2 million recorded in 2020. Notably, China accounted for half of these sales, with 3.3 million electric vehicles sold in the country in 2021. Furthermore, Europe witnessed a 65% rise in electric vehicle sales, reaching 2.3 million in the same year. The first quarter of 2022 saw a substantial increase in global electric vehicle sales, totaling 2.0 million, representing a remarkable 75% growth compared to the same period in 2021. The increasing investments in electric vehicles and battery manufacturing facilities worldwide further bolster the growth of the aluminum foil market. For instance, Volkswagen invested USD 120 billion in its electric vehicle and battery production facilities in 2021. Other prominent companies such as Daimler, Stellantis, Ford, and General Motors also made significant investments of USD 42.0 billion, USD 35.0 billion, USD 25.0 billion, and USD 23.0 billion, respectively. According to various sources, the total investments in electric vehicles and battery production are estimated to reach USD 515 billion by 2030, reflecting the growing adoption of these vehicles globally.
Aluminum foil demand is expected to be somewhat restrained during the forecast period due to fluctuations in aluminum prices. The price volatility can be attributed to various factors, including the sudden surge in demand for aluminum following the economic recovery from the pandemic in 2021, supply constraints resulting from China's reduction in aluminum production, and the ongoing Russia-Ukraine war. In the latter half of 2021, China reduced its domestic production due to cuts in power subsidies and to support its clean energy policy. As a result, domestic and export markets experienced a price hike in aluminum. Europe also witnessed a price rise due to lower production and high demand. Energy price hikes in Europe reduced power supply, resulting in lower capacity utilization and shutdowns, which further contributed to low production. The aluminum market experienced record-high prices in February and the first week of March 2022 due to supply pressure caused by the Russia-Ukraine war. The post-pandemic recovery phase also led to a sudden increase in global demand for aluminum from industries such as construction, automotive, and packaging, further straining the global supply scenario. For example, Petersen Aluminum raised prices for all its aluminum products by 8% starting March 28, 2022.
This section will provide insights into the contents included in this aluminum foil market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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