The U.S. & Europe aluminum foil market size was valued at USD 8.69 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2023 to 2030. Aluminum foil is a flat rolled product produced by either cold rolling sheet coils or by the continuous casting of liquid aluminum. The growing demand for packaging-related applications and a rise in EV battery production are the key growth drivers for the market. The product finds application in the packaging sector as it protects packaged goods against light, oxygen, moisture, bacteria, etc. It is also used for the packaging of tobacco, pharmaceuticals, and cosmetics.
Furthermore, they are widely used as positive current collectors in lithium-ion batteries owing to their low weight & cost and high specific capacity. The market growth is attributed to the increasing product demand in various industries, such as HVAC, food & beverage, pharmaceutical, and EV batteries. Increasing temperature due to climate change has increased investments in HVAC systems. For instance, in May 2022, Johnson Controls announced investing USD 7.5 million for automation equipment in its commercial HVAC manufacturing plant in Norman, U.S. The new equipment is likely to increase the production capacity of the facility. As a result of the growing product demand in packaging applications, private companies are investing in the packaging industry of the country.
For instance, in September 2022, GEA, an international food processing technology supplier, started a food processing and packaging North American Technology Center in Frisco, Texas, U.S. Also, Pianca Packaging LLC started a new packaging facility in Lehigh Valley, U.S. The company produces containers for bakeries, food processors, and supermarkets. However, fluctuations in aluminum prices are anticipated to restrain market growth to a certain extent over the forecast period. Volatility in prices is attributed to factors, such as a sudden demand for aluminum after the economic recovery from the pandemic in 2021, supply constraints owing to the cut down of aluminum production by China, and the ongoing Russia-Ukraine war.
The key players in the industry have already taken initiatives to implement new digitalized solutions and brought in automation as a step towards Industry 4.0. The implementation of smart factories in the packaging industry enhances productivity. For instance, as per the research conducted to check the profitability of applying Industry 4.0 solutions in blister factories, the transformation of a classic blister factory to a smart factory yielded to be 30% more effective in terms of production. Thus, the implementation of Industry 4.0 in packaging factories is anticipated to enhance production and eventually benefit the demand for aluminum foil.
On the basis of products, the industry has been further categorized into wrapper foils, container foils, foil lids, pouches, blister packs, and others. The wrapper foils segment dominated the industry in 2022 and accounted for the maximum share of more than 22.40% of the overall revenue. The large share of the segment can be attributed to the growing demand for wrapper foils in food delivery businesses, restaurants, households, and other end-uses.
Their demand has witnessed a surge, especially after the pandemic, as the masses across the world made efforts to minimize the risk of getting affected by coronavirus by relying on packaged food delivery services. The foil lids segment is estimated to account for the second-largest share of the market. The increasing investments in the global pharmaceutical sector are expected to augment the demand for aluminum foil lids over the forecast period. For instance, in August 2021, Amgen Inc. invested USD 550 million in the construction of a drug substance production plant in North Carolina, U.S.
The packaging segment held the largest share of over 65.0% in 2022 of the overall market. It is considered an ideal material for packaging food & beverages as it is lightweight, easily recyclable, and flexible. The rising investments in the food & beverage sector are expected to augment the demand for aluminum foil over the forecast period. For instance, in September 2021, PepsiCo laid the foundation for constructing one of its largest food manufacturing facilities in Poland. The project is worth USD 220 million, and the construction is expected to get completed by 2025.
The other end-use of aluminum foil is the industrial segment, which is further categorized into HVAC, EV battery, and other industrial end-uses. It is widely used for the manufacturing of finstock for air conditioners, heat exchangers, and car radiators. The rapid growth of the building & construction industry is expected to propel the demand for HVAC systems over the forecast period. For instance, in January 2022, the Indonesian parliament passed a law, the Capital City Bill, to build the new capital city in East Kalimantan province. The country is anticipated to invest USD 35 billion in new capital city construction, which is expected to be completed by 2024.
U.S. is estimated to be the fastest-growing region with a CAGR of 6.1% over the forecast period. The penetration of EVs is the key driver in the country. The majority of vehicle producers are inclined toward EV production. For instance, in October 2021, an announcement was made by Bentley Motors pertaining to the production of its cars, that it is expected to produce plug-in hybrids and Electric Vehicles (EVs) by 2026 and 2030 respectively. The market growth in the U.S. is attributed to the increasing product demand in various industries, such as HVAC, food & beverage, pharmaceutical, and EV batteries.
The country is focusing on becoming less reliant on other nations for sourcing EV components and batteries. Due to this, in May 2022, the U.S. government announced a USD 3.1 billion fund to support the domestic manufacturing of EV batteries and components. The funding is a part of the Bipartisan Infrastructure Law and is likely to aid U.S. companies to construct new manufacturing factories and retrofit existing facilities to produce EV batteries and related components. Such initiatives are expected to propel the demand over the forecast period.
The growth in the Europe region is driven by rising investments in various industries, such as food & beverages, pharmaceuticals, EVs, and HVAC. The European Union (EU) has set an ambitious target to become climate-neutral by 2050. In May 2022, The EU announced EUR 20 billion (USD 20.4 billion) to boost the sales of clean vehicles and to set up 1 million hydrogen and EV charging stations by 2025. Also, the increasing demand for EVs has pushed private players to invest in electric vehicle manufacturing.
The leading manufacturers are undertaking strategies, such as mergers & acquisitions and collaborations & partnerships, to withstand the intense competition and increase their market share. For instance, in June 2022, Metal Exchange Corp. announced the acquisition of Medalco Metals, a distributor of light aluminum rolled products including aluminum foil in the U.S. The acquisition is likely to help Metal Exchange Corp. to diversify its customer base in the growing industries, such as HVAC, automotive, building, and flex. Some of the key players in the U.S. & Europe aluminum foil market include:
Hangzhou Dingsheng Industrial Group Co. Ltd.
Hindalco Industries Limited
Jindal (India) Ltd.
LKSB Aluminum Foils
Raviraj Foils Ltd.
SNTO (Suntown Technology Group Corporation Ltd.)
Revenue forecast in 2030
USD 12.86 billion
CAGR of 5.0% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Volume in kilotons, revenue in USD million/billion, CAGR from 2023 to 2030
Revenue forecast, volume forecast, competitive landscape, growth factors, and trends
Product, end-use, region
U.S.; Germany; U.K.; Italy; Turkey; Russia
Key companies profiled
Dongwon Systems; GLS Group; Hangzhou Dingsheng Industrial Group Co. Ltd.; Hindalco Industries Ltd.; Jindal (India) Ltd.; LKSB Aluminum Foils; Nanshan; Qualityfoil Sarl; Raviraj Foils Ltd.; Shyam Metalics; SNTO (Suntown Technology Group Corp. Ltd.); Sparsh Industries
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This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. & Europe aluminum foil market report on the basis of product, end-use, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Food & Beverages
Region Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
b. The U.S. & Europe aluminum foil market size was estimated at USD 8.69 billion in 2022 and is expected to reach USD 9.09 billion in 2023
b. The U.S. & Europe aluminum foil market is expected to grow at a compound annual growth rate of 5.0% from 2023 to 2030 to reach USD 12.86 billion by 2030.
b. Based on product, wrapper foils accounted for a revenue share of more than 22.0% in 2022 of the overall market. The immense popularity in the packaging industry owing to the lightweight, superior barrier properties, cost-effectiveness, and ease of use has fueled the consumption of these foils by supermarkets, restaurants, food delivery businesses, and households.
b. Some of the key players operating in the U.S. & Europe aluminum foil market include GLS Group, Hangzhou dingsheng industrial group co. LTD, Hindalco Industries Limited, Jindal (India) limited, LKSB Aluminum Foils, Nanshan, and Qualityfoil sarl.
b. Increasing demand for packaging segment in order to increase shelf life, enhance safety, and easy availability are propelling the demand for aluminum foils in U.S. and Europe regions.
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