The global aluminum foil packaging market size was valued at USD 33.56 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2020 to 2028. The rising application of aluminum foil in food and beverage packaging application is likely to be a key driving factor for the industry growth. The processed food industry is witnessing high growth owing to increasing urban population along with changing consumer lifestyles. Furthermore, availability of packaged food products through online channels is supporting the growth of the food and beverage industry, which in turn is expected to have a positive impact on industry growth.
The busy lifestyle of the working population in the U.S. is increasing consumer reliance on packaged food and beverages. Furthermore, increasing consumer awareness regarding the impact of plastic on the environment is boosting the demand for alternative packaging solutions, impacting the aluminum packaging industry positively.
Advancements in the technical field such as the development of modified atmosphere technology (MAP) which aids in locking the freshness of food by controlling the blend of gases such as oxygen, carbon dioxide, and nitrogen inside the flexible packaging are expected to support the industry growth.
The profit margins of the market players are largely dependent on the raw material costs. Fluctuating aluminum costs leading to uncertainty around the availability of raw materials at economical or consistent prices is likely to be a key challenge for the industry. The high adoption of low-cost flexible plastic alternative solutions such as pouches and bags is also restraining the industry growth.
The Covid-19 pandemic has severely impacted global industrial production due to lockdowns imposed across major economies. However, unlike other industries, the food and beverage and pharmaceutical industries have remained unaffected, which are the major end-users of aluminum foil packaging, benefitting the market.
The aluminum foil wraps segment dominated the aluminum foil packaging market and accounted for the largest revenue share of over 33.0% in 2020. They are used as one of the layers in snack pouches, liquid cartons, candy wraps, confectionery wraps, and pharmaceutical pouches or bags. These extensive applications across end-use industries have made foil wraps a prominent product segment.
Pouches are used for packaging products across the food and beverage, personal care and cosmetics, and home care industries. The Cost-effectiveness and convenience of pouches compared to rigid packaging solutions are mainly driving their growth across various applications.
The aluminum foil containers maintain brightness and reflectivity, thereby attracting consumer attention in retail spaces. Besides, aluminum foil containers can be color lacquered or printed with brand-identifying designs. The increasing demand for sustainable packaging, especially in the food and beverage industries, is likely to make aluminum foil containers attractive options.
The other product segment primarily includes aluminum foil capsules and aluminum foil lidding used for sealing or closing containers. Plastic-based pods were primarily used for packaging ground coffee. However, due to sustainability concerns regarding plastic materials, coffee brands are gradually shifting toward aluminum foil-based capsule pods.
The food and beverage segment dominated the market and accounted for the largest revenue share of 46.0% in 2020. Products including pouches, containers, capsules, and lids are broadly used for packaging bakery, dairy, confectionery, coffee/tea, dry food, beverages, and meat and seafood items. Due to flexibility, lightweight, food safety, aroma protection, wide availability, and low cost are also responsible for the widespread adoption of aluminum foils in the food and beverages industry for packaging applications.
Tobacco is a perishable consumer product where the aluminum foil is the ideal barrier material for the inner lining of cigarette packets. Aluminum foil, in the form of aluminum-paper laminate, is mostly used in cigarette packets to lock the aroma of cigarettes. Also, offering the aesthetic appeal or look of tobacco packaging. This application segment is expected to witness a CAGR of 3.4% over the projected period.
In the pharmaceutical industry aluminum foil is generally used to make blister lidding, and foil laminates-based pouches or bags. Pharmaceutical formulations such as lozenges, tablets, and capsules, are particularly sensitive to contamination, and thus, the aluminum foil being a robust barrier to gases and light finds key applications in the pharmaceutical industry.
Asia Pacific dominated the market and accounted for the largest revenue share of 37.5% in 2020. In Asia Pacific, the market is increasing due to the growing middle-class population and expanding consumer markets for end-use applications including, food, beverage, and pharmaceuticals. India and China are likely to emerge as the key markets for the product on account of high investments in the manufacturing field coupled with a broad consumer base in these countries.
The pharmaceutical companies in the U.S. are gradually shifting toward flexible packaging products such as blisters owing to their efficient single-dose packaging and convenience of use. This positive trend toward blister packs is likely to offer significant growth prospects to aluminum foil packaging.
In Europe, the market is likely to witness notable growth on account of growing awareness regarding sustainable packaging solutions among consumers. Furthermore, stringent government regulations in the region to curb the use of plastic packaging are likely to have a positive effect on the industry.
Some of the key players are focusing on mergers and acquisitions to increase their product portfolio and customer base. For instance, in June 2019, Amcor plc completed the acquisition of Bemis Company Inc., a U.S.-based packaging manufacturer, for nearly USD 6.8 billion. The acquisition has significantly expanded the former’s product portfolio, customer base, manufacturing capability, and geographic presence across the world. Some of the prominent players in the global aluminum foil packaging market include:
Raviraj Foils Limited
Coppice alupack ltd
Eurofoil Luxembourg S.A.
Reynolds group holdings limited
Zhangjiagang Goldshine Aluminum Foil Co.
Express Flexi Pack
Market size value in 2021
USD 35.0 billion
Revenue forecast in 2028
USD 47.8 billion
CAGR of 4.5% from 2020 to 2028
Base year for estimation
2017 - 2019
2020 - 2028
Revenue in USD million and CAGR from 2020 to 2028
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, end-use, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; France; Italy; Spain; U.K.; China; Japan; India; Brazil; Saudi Arabia; UAE; South Africa; Egypt; Morocco; Iran;
Key companies profiled
Amcor plc; Constantia Flexibles; Novelis Aluminum; Raviraj Foils Limited; Ampco; Symetal; Aliberico S.L.U; Coppice alupack ltd; Eurofoil Luxembourg S.A.; Reynolds group holdings limited; Aleris Corporation; Zhangjiagang Goldshine Aluminum Foil Co.; JW Aluminum; Ardagh Group; Express Flexi Pack
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global aluminum foil packaging market report on the basis of product, end-use, and region:
Product Outlook (Revenue, USD Million, 2017 - 2028)
End-use Outlook (Revenue, USD Million, 2017 - 2028)
Food & Beverage
Regional Outlook (Revenue, USD Million, 2017 - 2028)
Central & South America
Middle East & Africa
b. The global aluminum packaging market size was estimated at USD 33.56 billion in 2020 and is expected to reach USD 35.0 billion in 2021.
b. The global aluminum foil packaging market is expected to grow at a compound annual growth rate of 4.5% from 2020 to 2028 to reach USD 47.8 billion by 2028.
b. The containers segment dominated the market with a share of nearly 51.6% in 2020 owing to their ability to maintain their brightness and reflectivity, thereby attracting consumersâ€™ attention in retail spaces.
b. Some of the key players operating in the global aluminum foil packaging market include Amcor plc, Constantia Flexibles, Novelis Aluminum, Raviraj Foils Limited, Ampco, and others.
b. The key factors that are driving the global aluminum foil packaging market include changing lifestyles, increasing penetration of organized and e-retail across the region, and rising economical activities in emerging countries.
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