According to a report by Grand View Research, Inc.; the global metal cans market is projected to reach a valuation of around USD 52.83 billion by 2020. Growing need for canned products owing to increasing adoption of fast lifestyle among consumers are anticipated to propel the market over the forecast period (2014 to 2020). Metal cans possess some useful properties such as recyclability and heat resistance that can help preserve items packed.
Growing demand for preserved foods and beverages among consumers is likely to propel growth of the market in the coming years. Quick recycling of metal cans as compared to alternative materials such as plastics and glass can foster market expansion. Growing adoption of eco-friendly products and continuous technological advancements can further fuel the market for metal cans. Effective properties such as extended coolness and resistance from ultra violet (UV) radiations is anticipated to stimulate market growth during the forecast period (2016 to 2020).
Rising awareness regarding bio-based plastics among manufacturing companies is expected to hinder growth of the market during the forecast period. In addition, incapability of tin metal cans to preserve acid based vegetable juices and citric fruits can also obstruct market growth in the coming years.
The worldwide metal cans market can be segregated on the basis of product type and region. Based on product type, the market can be classified into food and beverage metal cans. The food metal cans segment can be further categorized into fruits, vegetables, soups and miscellaneous foods, and others. Mostly, aluminum alloys and steel can be used as metal for packaging of vegetables and fruits. Unique properties of these metals to resist high temperatures and ability to offer longer shelf life can drive demand for fruits metal cans in the forthcoming years. In addition, high adoption of frozen vegetables stored in metal cans owing to increasing number of working population can augment market expansion during the forecast period.
Based on beverage metal cans, the market can be segmented into alcoholic beverages, carbonated beverages, fruits and vegetable juices, and new drinks. In 2013, beverage cans accounted for 79.3% of market share and is expected to continue growing due to high demand for beers, carbonated soft drinks (CSD), and fruit juices. Effective property of metal cans such as recyclability over polycarbonate and polyethylene terephthalate (PET) materials can fuel demand through 2020. In addition, economical prices, and less harmful effects than PET and other plastic materials can positively influence market growth.
Regional segmentation includes Europe, North America, Asia Pacific, and rest of the world (ROW). In European countries such as Bulgaria, Austria, Latvia, and Norway, the market had witnessed significant growth in the year 2013. Supportive initiatives from European Union (EU) towards recycling of metals and chemicals coupled with increasing consumption of beer can fuel growth of the market in the coming years. In addition, advancements in freezing technology can also impel demand for frozen food in the region.
The North America region is anticipated to dominate the global market owing to high demand for alcoholic beverages and beer over the forecast period. In addition, high adoption of fresh and healthier food among consumers such as fish can fuel demand for frozen food in the region. In 2013, the region accounted for around 31% of global market share equivalent to nearly USD 14.16 billion.
Asia Pacific, on the other hand, is anticipated to witness the maximum growth during the forecast period. This growth can be attributed to rising consumer preference for canned food and increasing disposable income. The market is likely to grow at a remarkable CAGR of around 4.3% from 2014 to 2020.
Some of the leading companies in the global metal cans market are Ball Corporation, Rexam PLC, Amcor, Crown Holdings, and CPMC Holdings. Most companies have sales and distribution offices in various regions, helping them maintain market presence over competitors. Beverage manufacturing companies such as PepsiCo, The Coca-Cola Company, and Red-Bull among others are anticipated to be major customers of the market.