Why is aluminum packaging becoming increasingly popular?

Aluminum's excellent properties make it an ideal packaging material. Major aluminum packaging products include aluminum foil flexible packaging, aluminum cans, aluminum foil containers, aluminum bottles and caps, as well as many technical packaging applications. Aluminum packaging will also play a greater role in the current green transformation of China's economy and the road to sustainable development.

Aluminum companies and related industrial chain enterprises, mainly aluminum packaging materials, are making efforts to continuously improve the level of responsible production, responsible sourcing and corporate governance, and to enhance their responsibility capability and the sustainability of aluminum and aluminum packaging materials. At the same time, the global Aluminum Initiative Program is being implemented and advanced to address sustainability issues and promote the realization of aluminum's contribution to a sustainable society.

Sustainable demand

The unlimited recyclability of aluminum cans makes them a sustainable solution for beverage packaging. According to Mordor Intelligence, the aluminum cans market is expected to grow at a CAGR of 3.2% during 2020-2025. Aluminum cans are the most recycled beverage packaging in the world. The average recycling rate for aluminum cans in the U.S. is 73%. 

The epidemic has also had an impact on aluminum can beverage packaging. The demand for aluminum cans grew significantly even before the outbreak due to shifting consumer behavior. Trends such as convenience, e-commerce, and health have been reinforced by the outbreak, and we are seeing beverage manufacturers respond with innovations and product launches that showcase these product attributes. 

Price is another factor in consumers' choice of canned packaging. Traditionally, canned beverages have been considered a cheaper beverage option. The production cost of aluminum can packaging is also favorable. Aluminum cans can effectively broaden the market reach while reducing operational costs. In the past, the packaging is mainly glass bottles, difficult to withstand long-distance transportation, sales radius is very limited, only to achieve the “origin sales” mode, the local factory will undoubtedly increase the burden on the physical assets of enterprises.

Personalization

In addition, novel and unique labels can attract consumers' eyes, and the application of labels on aluminum cans can make products more personalized. Canned products packaging plasticity and innovation is stronger, can give the promotion of diversified beverage packaging forms.

Aluminum packaging industry market environment tends to improve, there is huge potential and growth space. Today has a wealth of industrial products, agricultural products and export commodities resources, in addition to the rapid development of the beverage industry, chemicals, cosmetics and pharmaceuticals and other new industries, the development of metal packaging also provides a huge growth space.

With changing consumer preferences for sustainability, material functionality, aluminum is emerging as the material of choice for beverage and food packaging due to its recyclability, lightweight properties, and freshness retention.

The aluminum packaging industry witnessed significant growth in 2023, which was mainly attributed to the increasing demand for beverage cans and packaging foils. According to the data, the total global use of aluminum rolled products in the packaging industry in 2023 exceeded 11.5 million tons. 

Increasing preference for sustainable packaging solutions, rising disposable incomes and accelerating urbanization are key factors contributing to the growth of the aluminum packaging industry. At the same time, technological advancements are also increasing the attractiveness of aluminum packaging.

Conclusion