In recent times, the demand for aluminium cans has experienced an unprecedented surge, driven by the increasing consumer demand for environmentally friendly beverage packaging. Aluminium has gained popularity as a sustainable material due to its higher recycling content and recycling rate compared to other packaging materials. According to the Aluminum Association, aluminium cans have 12 times more recycled content than plastic and three times more than glass.
The rising popularity of aluminium canned beverage products is contributing to the growth of can-makers in the industry. The need for metal cans to store and preserve a variety of products such as food, beverages, medicines, paints, and aerosol products has led to an expansion in their usage. Additionally, the growing preference for packaged food and beverages among millennials and Gen-Z has opened up new growth opportunities for forward-thinking companies in the food packaging sector.
The bright future of aluminium in North America
The aluminium can market in North America is thriving, and the future looks extremely promising. The demand for aluminium beverage cans is anticipated to grow at a rate of 5% annually until 2030. This growth trajectory suggests that by 2030, the sales volume of beverage cans could reach 152 billion units, a drastic increase from 103 billion units in 2020.
Major industry players are optimistic about the growth prospects in North America, particularly due to investments in sustainable packaging solutions. Ball Corporation, for instance, has set ambitious sustainability goals for 2030, aiming to establish a fully circular aluminium beverage packaging ecosystem. This entails sourcing all aluminium from certified sustainable sources and transitioning 80% of their beverage can volumes to lightweight designs.
To exemplify such initiatives, Ardagh Metal Packaging and Crown Holdings joined forces in May 2023 to enhance the implementation of additional aluminium can-capture equipment in material recovery facilities. These collaborations aim to improve the recycling infrastructure for aluminium cans, further bolstering the industry's sustainability efforts. Advanced technologies like gas filling and vacuum filing, as well as customised technology solutions such as blockchain for traceability, are also expected to contribute to market growth.
Changing consumer preferences play a significant role
The driving force behind this demand growth is a positive trend among consumers who prefer aluminium cans over other types of containers. North American consumers, who are increasingly environmentally conscious, consider sustainability when making product choices. They recognise that aluminium is sustainable due to its exceptional recyclability and lightweight nature. Consequently, many consumers perceive aluminium canned drinks as high-quality and premium products.
In the past, glass bottled beverages were seen as premium products, but younger generations today prioritise environmental considerations. When selecting a beverage brand, they prefer drinks in aluminium cans. This shift in consumer preferences has led to the emergence of new beverage products packaged in aluminium cans. Alcoholic beverages, energy drinks, flavoured water, and other beverages are increasingly being sold in aluminium cans, catering to the evolving demands of consumers.
In addition to sustainability efforts, consumer preferences for convenience, personalisation, affordability, and health will contribute to the strong position of the United States and Canada in the global market. Forward-thinking companies will likely focus on the expanding bottled water industry and explore the promising opportunities associated with recycling aluminium cans in the region.
Long term outlook for aluminium is positive
The ongoing rise in demand can also be attributed to the fact that aluminium is considered the emblematic metal of advancement. The utilisation of aluminium is prevalent in various cutting- edge advancements across industries such as automotive, construction, electrical engineering, aircraft manufacturing, and the creation of innovative gadgets. This versatile metal empowers engineers and designers alike to find solutions to their respective challenges.
Simultaneously, the surge in aluminium consumption coincides with the backdrop of escalating global urbanisation and industrialisation. While developed nations have already achieved significant economic growth, developing countries continue to experience rapid expansion. As concerns over sustainability coincide with increasing economic prosperity and technological advancement, the aluminium market will trend upward for the years to come.
