Market Trends of Vietnam Metal Packaging Industry
This section covers the major market trends shaping the Vietnam Metal Packaging Market according to our research experts:
Growing Demand for Convenience Food in Vietnam
- The healthy growth of convenience stores, such as coffee and snack outlets, retail establishments, hospitality, and others, is expected to drive the need to produce metal can packaging.
- As incomes have increased due to rapid urbanization, the market for convenience food has shown remarkable growth, whereas traditional markets are declining. Further, the frequent turn to convenience food caused due to working professionals' busy schedules support the consumers to seek convenience in everyday products, such as food.
- Post-pandemic, the market's demand for plant-based foods has significantly increased. Vietnam's vegetarian food exporters are exploring opportunities as the United Kingdom is its primary market. For instance, in August 2022, Dong Thap province-based Bình Loan vegetarian food factory exported two tonnes of canned vegetarian food to the United Kingdom with the support of Longdan, a prominent importer of Vietnamese goods in the United Kingdom.
- The expansion of modern convenience stores and supermarkets across the country has geared up, which would likely add growth to the market studied. For instance, in July 2022, by the end of the year, WinCommerce, a retail giant, plans to open hundreds of new supermarkets and convenience stores in Vietnam to cater to the increased demand for convenience food products and to accelerate the expansion of its market share in the country.
- Convenience foods are primarily stored in metal cans to protect and preserve food. The imports of aluminum sheets are increasing, which may signify the demand for aluminum packaging products, such as cans for food packaging. For instance, in 2021, the imports of aluminum sheets, plates, and strips were valued at around USD 983.723 million, a 29% rise from 2020, valued at approximately USD 762.163 million. Due to the rising demand for convenience foods, packaging companies may use more aluminum sheets to produce cans.
Understand The Key Trends Shaping This Market
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Beverage Segment Expected to Hold Significant Growth Rate
- Vietnam's beer, wine, and other beverage packaging sectors significantly demand metal beverage packaging. There is an increase in recycling and reusability rates, as well as consumer awareness of the need to utilize environmentally friendly materials. Additionally, carbonated soft drinks are preferred to be packaged in metal cans in the country.
- Due to the various manufacturing coating technologies, the market for metal beverage packaging is rapidly growing in Vietnam. The steel and aluminum parts satisfy safe, dependable, and hygienic beverage packaging requirements. Metal beverage packaging products are inexpensive, functional, and non-contaminating.
- Beverage cans made of aluminum are the most recycled. Approximately 70% of the metal in typical aluminum cans is recycled. Due to their modest weight and ability to stack, these cans cause fewer overall carbon emissions during transit. Additionally, they increase the logistics organizations' efficiency in storage and delivery.
- Further, the packaging products may be personalized in terms of colors and 3D printing, as well as embossed, making them visually pleasing to customers. As a result, the country is witnessing increased demand for aluminum packaging products in sustainable packaging.
- Furthermore, Vietnam's production of drinks increased by 96.8% in 2021, according to statistics from the USDA Foreign Agricultural Service, Vietnam's General Statistics Office, and the Ministry of Industry and Trade (Vietnam). Vietnam's rising wine consumption has increased the demand for metal cans. In 2020, the average monthly consumption of wine and beer in rural Vietnam reached 1.4 liters per person, according to the General Statistics Office of Vietnam. Such products were more regularly consumed in rural Vietnam than in urban regions.
