Beverage Cans Market Size & Trend Analysis By Product (Aluminum, Steel), By Application (Carbonated Soft Drinks (CSD), Alcoholic Beverages, Fruit & Vegetable Juices), And Segment Forecasts To 2024

Industry Insights

The global beverage cans market size was estimated at USD 39.93 billion in 2015, growing at a CAGR of 4.6% from 2016 to 2024. The industry is expected to witness high growth owing to increasing consumption of alcoholic beverages such as beer and cider which are required to cool at a specific temperature for enhanced taste.

Growing consumption of alcohol-based flavored drinks in North America, Europe, and Latin America as a low-alcohol alternative is expected to drive the market growth over the next eight years. The demand for carbonated soft drink cans is expected to be driven by high consumption of the beverages in the Asia Pacific and Middle East & Africa.

In the U.S., the market is dominated by alcoholic beverages and carbonated soft drinks owing to increasing demand for beer in cans and aerated soft drinks. Cans are the predominant choice for beer manufacturers for promotional activities such as the launch of a limited edition beer cans due to easy molding abilities coupled with ease of printing on the cans. Thus expected boost overall market growth in this country.

The demand for highly portable beverage packaging coupled with superior properties of the cans including protection from the external environment is expected to emerge as the primary drivers for the market growth. However, fluctuating raw material prices is expected to restrain overall industry growth in the forecast period.

Beverage cans industry is expected to grow owing to increasing consumption of performance enhancement beverages such as energy and sports drinks. Growing demand for rehydration drinks and caffeine based drinks is expected to create new opportunities for market development in the projected period.

The market is integrated across two stages of value chain, from raw material processing to the production of beverage cans. In addition, companies such as Tata Steel are involved in used metal recycling so as to reduce the dependence on virgin aluminum and steel production. The sheets containing a percentage of virgin metal are then sold to the beverage can manufacturers.

Application Insights

Alcoholic beverage can segment emerged as a dominant application in 2015 accounting for 35.6% of the total revenue share. High demand for alcoholic beverages during various sports events such as Barclays Premier League and basketball leagues is expected to drive the demand for alcoholic beverage cans.

The demand for beverage cans is expected to grow on account of high consumption of carbonated soft drinks in Asia Pacific and Mexico that account for a high per capita consumption of carbonated beverages. In addition, introduction of new flavors in CSDs is expected to attract the consumers towards the product leading to a spurt in the demand for beverage cans over the forecast period.

In addition, extensive promotional activities organized by the leading beverage manufacturers such as Coca-Cola and PepsiCo to promote the consumption of beverage cans is expected to drive the industry demand. The market witnessed an increased demand for caffeine based drinks including coffee, iced tea, and other flavored drink such as sports and energy drinks owing to increased concerns regarding personal health.

The fruit & vegetable juices segment is expected to account for a relatively small share in the forecast period. Growing number of juice manufacturers in the market are expected to have a positive impact on the overall beverage cans industry. However, the impact is not expected to be significant owing to the limited penetration of metal packaging.

Product Insights

The market for beverage cans is highly dominated by the use of aluminum cans on account of superior properties such as lightweight and growing aluminum recycling primarily in Europe and North America. In addition, increasing demand for aluminum cans for use in packaging alcoholic beverages such as beer is expected to drive the market growth over the forecast period.

Aluminum beverage cans accounted for over 80% of the revenue share of the product in 2015 owing to their light weight and high molding abilities. In addition, increasing recycling programs undertaken by the national governments of the U.S. and United Kingdom owing to concerns regarding depletion of natural resources is expected to drive the demand for aluminum cans.

The steel beverage cans are witnessing below average growth owing to concerns regarding interaction with the can contents. Decreasing demand for 3-piece steel cans owing to complexity in manufacturing is expected to act as a restraint for the market growth. The demand for the products is also affected by the fluctuating prices of the raw materials used in the production of the metal sheets.

Thus the demand for steel beverage cans is expected to be driven by the use of the product for fruit & vegetable juices, sports drinks, and carbonated soft drinks. However, increasing substitution of steel cans by the lightweight aluminum cans is expected to drive the market growth over the forecast period.

Regional Insights

North America accounted for a maximum share of the global market owing to high consumption of metal cans in the U.S. Growing concerns regarding the use and consumption of sustainable packaging materials is expected to drive the industry demand in this region. In addition, rising demand for the product in the production of health and sports drinks such as Monster, Red Bull, and Gatorade is expected to propel growth.

Asia Pacific was the second largest region accounting for 22.9% of the revenue share in 2015. The region has emerged as the major supplier of processed aluminum and steel sheets for rest of the world. The region is characterized by an abundance of raw materials such as aluminum and steel for the beverage cans owing to the high availability of bauxite and iron ore in the region.

The beverage cans market in Europe is characterized by a high demand for the non-carbonated soft drinks. The market in Europe consists of various associations such as The Can Makers Association, which look after the trends current and future trends of the beverage cans and assist the manufacturers with latest the technology and consumption solutions.

Brazil has emerged as the fastest growing economies in Latin America and the region is characterized by rapid development leading to increasing disposable incomes of the consumers. The consumers in the market have exhibited an urge for upgrading their lifestyles which are expected to have a positive impact on the overall industry growth.

Beverage Cans Market Share Insights

The industry is highly fragmented with key manufacturers such as Ball Corporation, Crown Holdings Inc., and The Ardagh Group accounted for the majority of the beverage cans production. The market exhibits high dependence on raw material prices, change in preferences as well as drinking habits of the consumers across the globe.

The market is characterized by continuous product design innovations and mergers and acquisitions to increase market share. For instance, in June 2016, Ball Corporation announced the acquisition of Rexam PLC, thereby increasing the market share of the company. In addition, Crown Holdings Inc. announced the acquisition of Spain-based two-piece aluminum can manufacturer Mivisa Envases SAU in a move to expand its share in the country.

The industry is distinguished by the presence of buyers such as PepsiCo, AB InBev and The Coca-Cola Company that procure high volume of cans at a high frequency. As a result, the can manufacturers opt for well-established distribution networks to satisfy the static and the dynamic need in case of a promotional activity undertaken by a beverage producer.

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