Market Trends of Aluminum Foil Packaging Industry
Rolled Foils Segment Accounts for a Significant Share in the Market
- Aluminum foil packaging, including aluminum wraps and containers for pharmaceuticals and online-ordered food, has registered a significant increase in demand. The Aluminum Stewardship Initiative (ASI) has set many social and environmental policy standards. The organization is expected to restore the disrupted supply chains for aluminum foil packaging materials caused by the nationwide lockdowns imposed during the COVID-19 pandemic.
- Aluminum foil wrappers maintain brightness and reflectivity, attracting consumer attention in retail spaces. Besides, aluminum foil can be color-lacquered or printed with brand-identifying designs. The increasing demand for sustainable packaging, especially in the food and beverage industries, will likely make aluminum foil wrappers an attractive option.
- An aluminum foil wrap provides specific characteristics, such as dead fold and embossability, which other packaging materials cannot obtain. The food, tobacco, and cosmetics industries are expected to be the primary drivers of the growth of aluminum foil wraps over the forecast period.
- Additionally, aluminum rolled foils are increasingly used in the culinary preparation of different foods due to their ease of use and disposal and ability to transfer heat twice as quickly as regular metal. As part of a growing culinary practice in households, aluminum foil is used to wrap and bake food.
- In the past few years, the production of aluminum has also increased, and many countries have taken the initiative to increase the number of smelters for the production of large metric tons of aluminum. According to a US Geological Survey report published in January 2024, China's smelters collectively produced approximately 4.1 million metric tons of aluminum in 2023. Aluminum, the predominant non-ferrous metal, has extensive applications across the packaging industry.
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Asia-Pacific Accounts for a Significant Share in the Market
- The Asia-Pacific regional segment is anticipated to maintain its dominance throughout the forecast period. China's massive consumption of aluminum foil for producing aluminum packaging is mainly responsible for the region's strong demand for the material, leading to the rise of the aluminum foil market. Aluminum foil is increasingly used for food goods storage in the region. Key industries, including food, pharmaceutical, and EV battery producers, are anticipated to propel market growth.
- Asia-Pacific countries produce and use the majority of aluminum in pouches and bags. The need for healthier lifestyles and consumption patterns in these countries is increasing the demand for aluminum foil. The need for aluminum foil packaging is rising due to increasing populations in developing countries. The demand for aluminum packaging is increasing across several Asia-Pacific countries as they seek to encourage environmentally friendly consumption, ensure food safety, preserve food, and uphold the principles of environmental sustainability.
- In addition, according to the National Bureau of Statistics, in 2023, the production volume of primary aluminum in China was 42 million tons, an increase from 40.21 million tons in 2022. In the past decade, China's annual primary aluminum production steadily increased, reaching 35.04 million tons in 2019.
- Moreover, at the 37th AAHAR International Food and Hospitality Fair, India's 1st Golden Embossed HOMEFOIL was launched by LSKB Aluminum Foils Pvt. Ltd. The thickness of 1 kg and 555 g golden and silver embossed HOMEFOIL launched by LSKB Aluminium Foils Pvt. Ltd is 18 Micron, and for 75 m, 25 m, and 9 m, it is 12 Micron. The products are manufactured using innovative technologies in safe, environment-friendly, well-ventilated premises to maintain hygiene. The package also has an attached foil cutter to cut the foil safely.
- India is the second-largest country worldwide after China in tobacco consumption, resulting in high demand for short aluminum foil wraps. Nowadays, aluminum foil is the preferred barrier material, particularly for the inner liner of cigarette packets. This is because it combines an exceptional "feel" and appearance that is light, robust, and simple to reseal with the capacity to preserve the distinctive aroma of each blend and brand.
- ITC India Ltd's Cigarette segment’s revenue surged to over INR 312 billion (USD 3.73 billion) in the financial year 2023, marking a significant increase from about INR 261 billion (USD 2.73 billion) in 2019. Notably, ITC Ltd stands as a major player in India's FMCG industry, with cigarettes being its flagship product. Therefore, such growth trends in cigarette revenue may have pushed the demand for aluminum foil nationwide.
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