Although every industry is bouncing back from the effects of the covid pandemic, the recovery rate varies for each. Some are making a comeback faster than others, and the aluminium foil industry is one such industry. Thanks to the proliferating food and beverage industry, the demand for aluminium foil is rising. It is believed that this industry will grow at a CAGR of 3.27% between the forecast periods 2022 to 2028. The North American market will likely contribute to 32% of the growth. So why is aluminium foil becoming popular, and will it grow uncontended?
Plastic packaging vs aluminium foils: Who wins?
Plastic packaging is popular in the F&B industry because it is cheap and convenient. But is it affordable? The truth is plastic packaging comes at the cost of environmental welfare. The enormous use of plastic is leading to pollution. Therefore, industries are turning their attention to aluminium foils. They are a perfect substitute for plastic containers. Besides the food and beverage sector, end users, such as the pharmaceutical industry, cosmetics industry, and others, is also adopting aluminium foil packaging. The growing environmental consciousness is likely to contribute to the growth of the aluminium foil industry.
The popularity of secondary aluminium amongst aluminium foil producers:
One of the top qualities of aluminium is that it is a recyclable metal, thus the name green metal. The demand for scrap aluminium is rising globally as manufacturers try to curb their carbon footprint and reduce manufacturing costs. Secondary aluminium consumes less energy and is an economically viable option.
Furthermore, consumers are looking for packaging options that are sustainable as well as lightweight. Aluminium foil ticks all the boxes, so secondary aluminium is becoming a producer's favourite.
Aluminium foil and the F&B sector:
The food and beverage industry significantly contributed to the increased demand for aluminium foil in the post-Covid-18 era. But why so? Although plastic continues to dominate the sector, it poses environmental as well as health threats.
Aluminium is a plausible solution to the plastic problem. It rarely reacts with the food and keeps the product fresh. Additionally, it resists moisture, sunlight and spoilage. Therefore, it is a go-to packaging material for perishable goods. Finally, aluminium foils are lightweight, flexible and portable, making them a convenient choice for the food and beverage sector.
Sneak peek into the pharmaceutical packaging sector:
The rising demand for the pharmaceutical blister packaging market in the US is one of the significant trends pushing the demand for aluminium foil. After the Covid-19 pandemic, the pharmaceutical market is rapidly growing; hence, there is an increase in demand for aluminium foils and aluminium blister packs. Industry players must develop robust, high-quality, affordable technology solutions to meet people's heterogeneous medical needs. Moreover, medical supplies and medications are expensive. Aluminium foil packaging is an attempt to make it affordable for more and more people.
Aluminium foil demand will grow at the macro and micro levels-
The aluminium foil industry is projected to reach new highs between 2022 and 2028. However, it may rule the packaging industry as opposed. In an attempt to become sustainable, one of the aluminium foil industry's major end users, the F&B sector, is exploring naturally made and sourced packaging options. As a result, paperboard and pulp packaging are steadily making their way.
Additionally, glass packaging has been in the game for quite some time.
All said and done, aluminium scores over all these materials in many aspects. Right from ductility and malleability to strength and recyclability- the white light metal has all the qualities of an ideal packaging material. From the health perspective, too, it is safe, which is why its demand at the household level has increased manifold after Covid. And this rise will hold its grounds.
In the end…
Competition for aluminium, especially aluminium foil packaging, will always be there. Therefore, it will be interesting to see what the future holds for the material and how it will beat the competition. Lastly, fluctuating aluminium prices may also impact the aluminium foil market in a significant way.
