Market Trends of LA Metal Cans Industry
This section covers the major market trends shaping the Latin America Metal Cans Market according to our research experts:
Aluminum Cans to Hold Major Market Share
- Aluminum is one of the most popular metals for can packaging solutions. Traits, such as the provision of metal canvas for ad printing, fast cooling, protection of flavors of beverages, 100% recyclability, and inertness to chemicals and several ingredients in the food and beverage products, make it the most preferred choice for beverage cans.
- Aluminum cans are the most preferred type of packaging for soda, brew beers, and energy drinks, owing to their sustainability and recycling properties. In the last decade alone, there has been a significant reduction in the weight of aluminum cans used for several packaging purposes.
- This has pushed most of the manufacturers of metal cans to shift from steel to aluminum cans. A considerable reduction in freight weight, resulting in low transportation costs and reduced carbon emission, is encouraging the use of aluminum cans.
- Increasing environmental policies and growing focus on recycling is augmenting the need for the material, while the focus of companies on improving the eco-friendly brand image is further expanding the growth of the aluminum segment of the market studied. Considerable advancements in manufacturing techniques and changing consumer needs are expected to open new opportunities to the aluminum segment of the market studied during the forecast period.
- Aluminum cans offer the advantages of recyclability and ease of printing. Additionally, they are lightweight and act as excellent barriers to gases. Such factors allow a higher penetration of aluminum variants in the beverages industry compared to other metal cans. Over the forecast period, sustained demand from the non-alcoholic beverage sector is expected to drive the growth of the aluminum cans market.
- Further, Vendors are investing in facility expansion with an increase in demands for aluminum metal cans in the region. For instance, Ambevalso completed the construction of a beverage can plant in Brazil in 2020 despite the delays caused by the spread of the COVID-19. The company invested USD 175 million and expanded the production to 1.5 billion aluminum cans every year for the storage of beer. This has increased competition among players as manufacturers like Ardagh, Ball, Canpack are competing to grow their respective production capacity to 40 billion cans a year.
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Canned Food and Beverages to Drive the Market
- Packaged and convenience food has become a staple food for many consumers, owing to their hectic lifestyles and work schedules. Therefore, large organized retailers have started to stack huge amounts of canned food and beverages. Nowadays, offline and online retailers stock a wide range of brands of packaged food items in their stores.
- Aggressive marketing strategies of beverage companies toward the usage of metal cans have also had an impact on the studied market. As canned beverages are being considered trendy among the youth, and ready-to-eat or semi-processed canned foods are considered convenient and economical among several global users, the penetration of canned products is increasing rapidly.
- The rising demand for energy drinks and canned cold coffee in Latin America is also expected to boost market growth. Hence, the food and beverage industry in Latin America is expected to offer opportunities for the market studied. For instance, according to the Associação Brasileira das Indústrias da Alimentação, the food and beverage industry is the most significant sector of Brazilian manufacturing, accounting for revenue of BRL 789.2 billion in 2020 compared to BRL 699.9 billion in 2019.
- High consumption of canned beverages in numerous sports tournaments, including CONCACAF Champions League, Copa Libertadores, and Big League World Series, among others, owing to the growing convenience in handling the food items, is expected to boost the demand in the market studied over the forecast period.
- In the Latin American market, Brazil contributes to the growth of metal cans through the presence of 889 registered breweries, with the country producing 16,968 products. Further, the increasing consumption of the organic beverage industry also contributes to the studied market’s growth. According to Organic Trade Association, the net revenue on the consumption of organic beverages in Brazil accounted for USD 44.2 million in 2020 compared to USD 42.8 million in 2019.
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