Global Aluminum Foil Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Aluminum Foil Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global aluminum foil packaging market is expected to register a CAGR of 4.81% over the forecast period. The growing demand for ready-to-eat confectioneries and pharmaceutical products is the primary driver for the household aluminum foil market.

Key Highlights

• One factor that assists the growth of the household aluminum foil industry is government regulations toward food safety and quality standards, which influences manufacturers to develop effective packaging solutions that prevent food contamination.
• The increasing demand for fast-moving consumer goods, coupled with the growing economy, is expected to lead to the market's high growth in APAC.
• Aluminum foil is increasingly being merged with flexible films to create lightweight packages. Packaging pet food, tuna, coffee, and soups alone produces 13 billion packages across the globe, emerging as viable alternatives for conventional plastic packaging.
• The expansion of the industry is anticipated to be supported by technical developments such as the creation of modified atmosphere technology (MAP), which helps to lock in the freshness of food by controlling the mixture of gases such as oxygen, carbon dioxide, and nitrogen inside flexible packaging.
• Aluminum's sustainability creates competitive business advantages while simultaneously providing product development advantages. According to the Aluminum Association, nearly 75% of all aluminum that has been ever produced is still in use. Moreover, when disposed of aluminum waste does not add any poisonous contaminants to the water or ground; furthermore, these can be economically recycled and have more sustainability.
• Furthermore, the COVID-19 outbreak had a significant negative impact on world industrial production as a result of lockdowns implemented across important economies. The food and beverage and pharmaceutical sectors, the biggest consumers of aluminum foil packaging, haven't been impacted, in contrast to other industries, which helped the growth industry.

Key Market TrendsFoil Wrappers Accounts for Significant Share in the Market

• The food, tobacco, and cosmetics industries are expected to be the major drivers of the growth of aluminum foil wraps over the forecast period.
• The 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, is likely to make aluminum foil wrappers an attractive option
• An aluminum foil wrap provides certain characteristics, such as dead fold and embosses ability, which other methods of packaging materials cannot obtain.
• Companies have been identified to use aluminum foil's unique barrier properties to safeguard tobacco products against moisture, deterioration, aroma transmission, and bacteria by sustaining a micro-climate in the package. Increasing the tobacco industry is expected to push the adoption of aluminum foil wraps over the forecast period.
• APAC's increase in the urban population can be attributed to the rise in the usage of aluminum foil, which is consistently increasing in countries like South Korea and China. North America has a huge usage penetration of the aluminum foil market. However, the user still has a scope as, according to the US Department, American households only use about one to three foil wraps daily. But the usage beyond is minimal, leaving a span for market capture.

North America Accounts for Significant Share in the Market.

• Though the country’s aluminum foil exports were up to 2013, the robust domestic demand for aluminum has caused an increase in aluminum foil import from China, whose foil shipments to the United States have increased almost tenfold, accounting for around 265 million pounds, in the last decade.
• The food industry accounts for around 5% of the country’s GDP and is still growing, owing to the greater demand for packaged food. With the Food and Agriculture Organization of the United Nations (FAO)-specified guidelines for packaging food products, aluminum is on the list of approved materials or coatings that can be used safely.
• There is a rising availability of packaged dairy products through various retailing channels, along with the increasing consumer preference toward protein-based products, such as yogurt, cheese, and butter, which are expected to drive the adoption of dairy-based packaging in the United States.
• The US cheese shipments to China, South Korea, and Mexico increased by more than 25% each, and exports to Japan and Southeast Asia rose by 16% and 8%, respectively. Furthermore, the changing consumer lifestyles in the region, coupled with the growing demand for snack products, is driving the need for aluminum-packaged food products that offer an extended shelf life and sterility.
• According to the US Dairy Export Council, dairy export accounted for USD 4.8 billion. This dynamic situation in the dairy industry is prompting product manufacturers to turn toward innovation to meet consumers' increasing needs and adhere to the domestic and international industry food standards.

Competitive Landscape

The aluminum foil packaging market is highly fragmented due to low entry barriers and growing demand. Some key players in the market are Amcor Limited, Constantia Flexibles, China Hongqiao Group Limited, Hindalco Industries Limited (Aditya Birla Group), and Novelis.

• April 2022 - Novelis announced that it is investing more than USD 30 million to build a new continuous annealing line at its Plettenberg-Ohle, Germany, facility, which will double the plant's capacity for aluminum in the production of coffee capsules. The development represents the inaction of the company strategy for growing line solutions for sustainable packaging.

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• The market estimate (ME) sheet in Excel format
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