New report forecasts US metal cans market growth

The United States metal cans market is expected to grow at a CAGR of 0.81% during the forecast period (2021-2026), according to a report by Research and Markets.

As growing environmental concerns around the world have resulted in increasing awareness about the type of packaging materials utilised, the recyclability of metal is one of the primary factors influencing the consumption of metal cans in the market.

The food and beverage industry is constantly evolving. In recent years, consumer preference towards convenience food has shown an upward trend owing to the ever-changing lifestyle of the people in the region. Consumer trends, such as a preference for small-sized and multi-pack packaging formats, are supporting the volume growth of the metal cans market in the region.

The pandemic has led to an increase in the consumption of canned food the United States, which indicates a positive outlook on the market. According to a 2020 survey published by Store Brands, the consumption of canned food due to the Covid-19 pandemic increased by 96% in the United States.

Companies are constantly expanding their footprint in the region to meet the growing demand for metal can packaging from different end-users. For instance, in August 2020, Ball Corporation announced the expansion of its North American aluminium further can production capacity beyond its previously announced six-billion-unit volume increase planned by the end of 2021.

Metal cans, especially aluminium, are the most recycled packaging units across the world. In the US, 105,784 aluminium cans are recycled each minute, leading to an overall recycling rate of nearly 50%, the highest recycling rate for any beverage container. Most cans recycled in the United States get turned into new cans. If not turned into new cans, used beverage cans (UBC) are also used to make products in the transportation and construction markets.

Metal cans have an average 70% collection rate, higher than any other packaging material available in the market. The energy consumed to process recycled metal cans is 5% more than that used in manufacturing primary metal cans. Thus, the industry is making a strong push toward adopting recycling, while government initiatives and consumer support boost this trend.

The growth in the annual expenditure on cosmetics, perfumes, and bath preparation products in the country has directly influenced the growth of aerosol metal cans. There has been an increase in demand for these products, especially by the female population, which is driving the segment’s demand. Ongoing urbanisation, rising disposable incomes, and increasing awareness regarding beauty products is also a factor driving the segment’s growth as well as frequent product innovation in the market.

The United States metal cans market is moderately competitive owing to the presence of several players (both regional and global) in the region. The stable profitability and demand for metal cans in the region encourages the vendors to increase investments in capacity expansion and products development. Some of the key players operating in the region include Crown Holdings Inc, Ball Corporation, Silgan Containers LLC, and Ardagh Group SA.