India Metal Packaging Market - Growth, Trends, Covid-19 , and Forecasts (2023 - 2028)

India Metal Packaging Market - Growth, Trends, Covid-19 , and Forecasts (2023 - 2028)

The India Metal Packaging Market is expected to register a CAGR of 6.52% over the forecast period. Increased urbanization is one of the significant reasons that are prompting companies to increase metal cans and container production capacity. Moreover, the penetration of organized retail is also compelling market players to ramp up their capacity.

• The recyclability of metal packaging is one of the significant factors expected to drive the global metal packaging market over the forecast period. Like aluminum and steel, metal packaging materials are the two most robust raw materials for packaging due to the superior recycling infrastructure. Recycling one aluminum can save enough energy to run a television for three hours. With the growing middle-income group population, changing lifestyles, and evolving consumer preferences, India's consumption rates are rising steadily.
• The consortium of Hindalco Industries Ltd, a company of the Aditya Birla Group, Can-Pack India, and Ball Beverage Packaging (India), called the Aluminum Beverage Can Association of India (ABCAI), advocates replacing plastic and glass with aluminum as packaging material. Moreover, aluminum can use in the country is 5%, and the association's objective is to help it grow to about 25 % by 2030. Also, with the increasing consumption of alcohol, the usage of metal caps and closures is rising.
• India is one of the fastest-growing alcoholic beverage markets globally. According to Indian Council for Research on International Economic Relations (ICRIER), the Indian alcoholic beverages market will reach about INR 3.9 lakh crore (USD 52.5 billion) with a CAGR of 6.8% by 2023.
• The high recyclability of metal cans is one of the significant drivers of the market. Aluminum cans deliver nearly protection against moisture. The cans do not rust and are resistant to corrosion, as well as provide one of the most extended shelf lives considering any packaging. It also offers many benefits, such as rigidity, stability, and high barrier properties.
• A big challenge faced by the soft drinks industry is the corrosion of soft drinks in aluminum cans, resulting in losses in money. Furthermore, metallic elements also cause severe health complications in food. Acidic foods like tomatoes could be significantly affected by aluminum if the company uses case metal for storing them. It results in ruining the taste and quality of the food. Such factors are restraining the market growth.
• During the COVID-19 outbreak in India, packaging designs and materials which can address hygiene and consumer safety concerns and minimize the possibility of contamination of the virus became popular. Hence, the adoption of metal packaging is likely to rise due to its chemical properties.

• Among different kinds of metal packages, cans, drums, bottles, caps, and closures have been the most popular. Ease of use and availability aided the adoption of metal cans in several packaging applications over the last century. Additionally, consumer trends, such as a preference for small-size and multi-pack packaging formats, support the volume growth of the metal cans demand.
• Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India. Therefore, most beverage companies in the country offer mini-cans, which generally contain smaller volumes of products and cost less than traditional canned products.
• The demand for can-packed products would sharply rise, given the increasing emphasis on recycling and sustainable solutions. For instance, in 2021, Alcohol in 180 ml cans was introduced in Rajasthan, India, by Ball Beverage Packaging. Overall, the demand for beer is expected to increase post-pandemic in the years and can compensate for the loss it occurs in the year 2020
• Further, two-piece and three-piece cans are typically available in aluminum, tin plate, and steel. The usage of cans is dependent on their application and industries. The can type differs depending on the market and the product application, and companies use it for fish cans, cheese cans, beverage cans, etc. Steel cans are usually preferred as you can recycle them faster. Companies also use two-piece aluminum cans, as aluminum can be drawn quickly and used in aerosols, home fragrances, etc. The use of aerosol in India is growing well, especially aluminum aerosol. Ball Corporation has already entered India, and soon, India will become one of the largest production houses globally. Plus, the decorative can market is also picking up in India.
• According to Massilly India Packaging, three-piece cans’ per capita consumption in India is very low compared to France. Companies use it for packaging milk and other decorative cans. The expenditure in India is 1/20 compared to France and 1/100 compared to the USA. Canned food use is not in the Indian culture, but the scenario is slowly changing. With the increase in micro families and working lifestyles, there is no time to cook. This factor is expected to stimulate the growth of processed food in the Indian market, due to which the three-piece food cans have a high potential to grow.
• Hindustan Tin Works Ltd offers its general line cans composed of tin. It provides the highest barrier properties from oxygen, moisture, and bacteria. Also, it acts as an excellent barrier from rodents and other pests to ensure that the products are safe inside the pack till the user finally consume them. Companies use these cans for baby food, protein powder, coffee, ghee, other powdered products, etc. These are available in a diameter range of 65-174 mm.

• Covid-19 significantly changed the requirements of the food industry. Since restaurants mainly remained closed during the pandemic, people used to eat at home and bought small packs of food that were ready to eat. In Post-Covid, this trend may continue. It is also recognized that metal packaging is recyclable, eco-friendly products packed in metal containers have a long shelf life, and you can store them at ambient temperature. It will steadily increase demand from the food industry.
• Manufacturers pack sweets and other items in metal packages, such as rasgulla, milk powder, oils, and beverages. Companies pack more and more things in metal packaging for hygiene and product safety. Growth in this sector is expected for both cans and components. As far as cans are concerned, companies like Hindustan Tinworks Limited continue to manufacture food and non-food products. In the food category, companies use cans for packaging dairy products, baby foods, processed foods, juices, etc. In non-food categories, manufacturers use cans for paints, shoe polishes, disinfectants, and indoor refreshers.
• The recognition of metal packaging in India is very low, so metal packaging in India is just about 10,000 crores business. The Association of Metal Container Manufacturers of India (MCMA) emphasizes the advantages of metal packaging over other packaging materials. It will result in significant growth in metal packaging.
• Metal packages are divided into aluminum and tin. Aluminum is used primarily in the beverage sector, consisting of beverages and beer, while tin containers in all other foods and juices. The government of India strongly drives the food processing industry, which can generate a significant share.

The Indian metal packaging market is quite competitive. It is moderately fragmented and consists of significant individual players, such as Ball India (Ball Corporation), Oricon Enterprises Limited, Casablanca Industries Pvt Ltd, and Hindustan Tin Works Ltd. Many companies are increasing their market presence by expanding their operations or entering into strategic mergers and acquisitions.

February 2022: Food Safety and Standards Authority of India paved the way for packaging drinking water in non-transparent packaging solutions like aluminum beverage cans. Ball Corporation welcomed the move as it will help the company address the issues on the sustainability front and contribute to the Government’s initiative to regulate single-use plastics and provide the end consumer with an eco-friendly alternative.

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