Chicago, May 16, 2023 (GLOBE NEWSWIRE) -- The beverage cans market was valued at USD 23.7 billion in 2021. The market is estimated to expand USD 31.2 billion by 2026, exhibiting a CAGR of 5.6% over the projected period. The rise in the production of alcoholic beverages, such as beer and ready-to-drink cocktail products, has resulted in premium packaging solutions, thereby triggering the demand for cans. MarketsandMarkets™ provides this information in its research report, titled “Beverage Cans Market Global Forecast, 2021-2026”.
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Key Industry Development:
The rise in demand for sustainable products and awareness regarding the environment coupled with increasing demand for convenient packaging will drive the beverage cans market demand and growth of beverage cans globally.
Report Scope & Segmentation:
| Report Coverage | Details |
| Forecast Period | 2021-2026 |
| Forecast Period 2021 to 2026 CAGR | 5.6% |
| 2026 Value Projection | USD 31.2 billion |
| Segments covered | Material Type, Beverage Type, Structure, and Region |
| Regions covered | North America, Asia Pacific, Europe, and RoW |
| Largest Market | North America |
Key Takeaways:
- Beverage cans market size is expected to grow 3.3 billion by 2027.
- Beverage cans are preferred by consumers due to their convenience and portability. They are lightweight, easy to stack, and offer easy-to-open features. The rising demand for on-the-go beverages and ready-to-drink products has fueled the growth of the beverage cans market.
- The non-alcoholic beverage segment by beverage type is projected to achieve the largest growth in the beverage can market.
- The beverage cans market is highly competitive, with numerous players operating in the industry. Key players include Crown Holdings, CPMC Holdings Limited, Global Bugs, ArdaghGroup S.A, Toyo Seikan Group Holdings Ltd. etc.
- The increasing demand for beverages such as carbonated soft drinks, beer, and wine, amongst others, in the Asia Pacific countries, drives the region’s growth rate at a higher pace.
Drivers and Restraints:
Increase in popularity of energy and sports drinks
Energy drinks are widely promoted as products that increase energy and enhance mental alertness and physical performance. Next to multivitamins, energy drinks are the most popular dietary supplement consumed by American teens and young adults. One reason can be semantics. Many people interchange sports drinks with energy drinks, but they are markedly different, with the former being formulated specifically for enhanced performance during activity and the latter being designed to inject a burst of energy into the consumer. But semantics alone cannot explain why energy drinks are set to outsell coffee in the next decade. While coffee is still viewed as traditionally consumed by older individuals, energy drinks have a greater appeal among the younger generation, aligning themselves with their lifestyle.
The surge in energy drink sales comes despite criticism of the beverages, namely the argument that they contain too much caffeine and sugar. However, recent innovations now see brands incorporating organic options into their product lines, a move that could shift energy drinks into the health sections. The term “organic” on energy drink labels refers to the use of real coffee beans to infuse caffeine content rather than caffeine that has been manufactured in a lab. Clean energy, along with diet and natural energy drink options, is another innovation that is meant to accommodate the growing cultural health awareness movement, wherein individuals are taking more control of their health.
Saturated markets for cans in the developed regions
The demand for cans is directly associated with the sale of packaged products on the retail front. With the growing awareness of consumers regarding health benefits, beverage cans used for carbonated drinks such as alcohol and soft drinks are experiencing sluggish sales. Moreover, the slow growth in demand for other beverage products has hampered the growth of beverage packaging in the last five years. However, in developed regions such as North America and Europe, the consumption of canned beverages is high. The beverage cans market for cans is saturated in the region and has limited scope for further growth.
The total share of beverage cans used for carbonated beverages has declined by 60% as per the data by the US can association, thereby resulting in sluggish demand. The food industry is witnessing significant growth for canned fruits due to the increase in demand for healthy food by consumers, resulting in the penetration of packaged products.
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Segments:
By material type, the aluminum segment is estimated to hold the largest share of the beverage cans market.
Aluminum is a very ductile material. It is derived from bauxite ore. It is the most preferred raw material and is used for packaging beverage products as it offers impermeability and high flexibility. It is a very cost-effective raw material used in industry and can customize the packaging with colors, 3D prints, and embossing. Therefore, technological developments have led manufacturers to remodel their strategies by using various sizes of cans, along with different shapes. Aluminum cans are a sustainable form of packaging with good waste treatment performance. The application and use benefit of aluminum cans is a means to increase the value of internal storage. According to the Environmental Protection Agency of the United States (EPA), in 2018, 1.9 million tons of aluminum packaging were generated for beers and soft drink cans, and 49.2 percent of aluminum beverage cans were recycled. Hence, aluminum cans are estimated to dominate the beverage cans market.
By beverage type, the non-alcoholic beverage segment is estimated to grow at a higher growth rate in the beverage cans market.
Non-alcoholic beverages majorly constitute carbonated soft drinks containing carbonated water, vapor, color, sweeteners, and preservatives. Carbonated soft drinks are often found to deteriorate in terms of taste and texture when packaged in glass bottles sealed with a crown cork. The two major deteriorative changes that occur in carbonated drinks are loss of carbonation and the rancidification of essential flavoring agents. These deteriorative changes can be reduced by providing effective packaging of beverage cans. In recent years, due to a rise in the consumption of carbonated beverages, the can packaging industry has seen tremendous growth. Further non-alcoholic beverages such as sports and energy drinks play an important role in an athlete’s life. These drinks contain carbohydrates in the form of sugar, electrolytes, proteins, vitamins, and caffeine and are now being widely consumed.
Regional Insights:
The North American market has a well-established beverage cans industry, driven by the high consumption of carbonated soft drinks, energy drinks, and alcoholic beverages. The demand for convenient packaging and the shift towards sustainable solutions have further fueled the growth of beverage cans in this region. Additionally, increased recycling efforts and government initiatives to reduce plastic waste have encouraged the use of beverage cans as an alternative to plastic bottles.
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Europe is another significant market for beverage cans. The region has witnessed a growing preference for cans due to their recyclability and the increasing awareness of environmental issues. Sustainability regulations and initiatives promoting circular economy practices have further boosted the adoption of beverage cans. The market is also driven by the demand for premium and craft beverages, which often use cans as a preferred packaging option.
The Asia-Pacific region represents a rapidly growing market for beverage cans. Factors such as a large population, rising disposable incomes, urbanization, and changing lifestyles have led to increased consumption of beverages in this region. The convenience and portability offered by beverage cans have made them popular among consumers. Moreover, the shift from traditional packaging materials, such as glass and plastic, to cans is gaining traction due to the sustainability aspect and the increased focus on hygiene and product safety.
The beverage cans market in Latin America is experiencing significant growth. The region has a high demand for carbonated soft drinks, energy drinks, and alcoholic beverages, which has driven the demand for beverage cans. The lightweight and recyclable nature of cans makes them a preferred choice for manufacturers and consumers. Additionally, increasing urbanization, modern retail infrastructure, and the popularity of on-the-go beverages have further propelled the market.
The beverage cans market in the Middle East and Africa is expanding, driven by the increasing consumption of carbonated beverages, fruit juices, and energy drinks. The demand for beverage cans is supported by factors such as convenience, product differentiation, and the adoption of sustainable packaging practices. Beverage can manufacturers are also investing in the region to cater to the growing demand.
List of Key Players Mentioned in the Report:
- Crown Holdings Inc. (US)
- ArdaghGroup S.A (Luxemburg)
- CPMC Holdings Limited (China)
- Toyo Seikan Group Holdings Ltd. (Tokyo, Japan)
- Can-One Berhad (Malaysia)
- Can-Pack S.A (Poland)
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Frequently Asked Questions (FAQs):
What is the projected market value of the global beverage cans market?
The global beverage cans market size is projected to reach USD 31.2 billion by 2026.
What is the estimated growth rate (CAGR) of the global beverage cans market for the next five years?
The global beverage cans market is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2021 to 2026.
What are the major revenue pockets in the beverage cans market currently?
During the forecast period, the Asia Pacific region is expected to experience substantial growth in the global beverage cans market, with countries like China and India playing a significant role. The high population density and prominent fruit production in these countries are contributing factors to the growth of the beverage cans market, particularly for juices and functional drinks.
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