South America Metal Packaging Market - Forecast(2023 - 2028)
South America Metal Packaging Market Overview
South America Metal Packaging
market size is forecast to reach US$12.8 billion
by 2026, after growing at a CAGR of 3.1% during
2021-2026. Metal packaging is a packaging process used for protecting products with
aluminum and steel layers for distribution, storage, and sale. Drawn cans and can ends are widely used in the food & beverage
industry for packing soft drinks, energy drinks, beer and many more. The
growing demand from various industries such as food & beverage,
pharmaceutical, personal care, chemicals, and households among others are
driving the market growth for metal packaging during the forecast period. The
growing population along with the growing demand for food & beverage
processing is one of the major factors driving the market growth. The changing
lifestyle, food habits are driving the demand for packaged foods which is further
driving the demand for metal packaging. The increasing globalization activities
along with the growing transportation of goods is also boosting the market
growth. The increased consumption of canned
food and the recyclability nature of steel and aluminum metals are positively supporting
the market growth for metal packaging. However, the growing usage of polymeric
products for the packaging industry is restraining the market growth for metal
packaging during the forecast period.
COVID-19 Impact
The COVID-19 pandemic is impacting
different industries; one of the few industries that were largely hit to some
extent was the packaging industry. The temporary shutdown of manufacturing
facilities has negatively impacted the market. The downfall in the production
of metal cans, disruption of logistical services, and lack of workforce
impacted the market negatively during the covid-19 crises. Travel restrictions
have reduced the supply of raw materials required for the manufacturing of metal
packaging, which, in turn, has affected negatively the market growth during the
pandemic.
South America Metal Packaging Market Report Coverage
The report: “South America Metal Packaging Market – Forecast (2021-2026)”, by
IndustryARC, covers an in-depth analysis of the following segments of the South
America Metal Packaging industry.
By Type: Food & Beverage Cans [Two Piece (Drawn), Three Piece,
can ends (Classic Ends vs Easy Open Ends), Hybrid], Paint Cans and Pails,
Drums, Aerosol [Aerosol Tops, Aerosol Bottoms, and Aerosol Bodies], Tubes,
Trays, Caps & Closures and Lids [Crowns, Vacuum Lug Closures / Closures,
Aluminium Closures, and Lids], Foils, Industrial Cans [Lever lid, Plug lid, Filler,
Printing Inks, and Seamed-lid], Canisters, and Funnel Bottles
By Material Type: Aluminium (Recycled and Virgin), and Alloys
[Aluminium, and Steel (Recycled vs Virgin) {Electrolytic Tinplate (ETP),
Electrolytic Chromium Coated Steel (ECCS), Tin Free Steel, and Others}, Tin,
and Others.]
By Coating Type: Resin(S), Cross-Linking Agents, Additives,
Solvents, and Others
By Packaging Volume: 0-100 ml, 100ml - 250 ml, 250 ml - 500 ml, 500
ml - 1 liter, 1litre - 5 liter, 5litre - 10 liter, 10 liters - 25 liter, 25 liters
-50 liter, and 50 liters and above
By End-Use Industry: Food [Seafood, Meat, Infant Nutrition &
Dairy, Vegetables, Catering, Biscuits, Cookies & Confectionary, Fats &
Oils, and Toppings], Beverages [Soft Drinks, Hard Drinks, and Energy Drinks],
Healthcare, Pharmaceuticals and Nutraceuticals, Personal Care [Shampoo,
Deodorants & Sprays, Skin Care
products, Coloring & Make-up, and Others], Household & Consumer
[Pet-care Products, Shoe Polish & Wax products, Cleaners & Pest
control, and Others], DIY, Tobacco, and relevant products, Industrial
[Construction Chemicals, Industrial Paints & Coatings, and Others
(Aerosol)]
By Geography: Brazil, Argentina, Colombia, Chile, Peru, Ecuador,
Venezuela, Bolivia, and Rest of South America
Key Takeaways
- Brazil is expected to register a significant CAGR of 3.4% during the forecast period (2021-2026). Changing lifestyles, increasing consumer spending, emerging economies, and rapid population growth are the major factors driving the market growth for metal packaging during the forecast period
- Metal packaging is gaining popularity due to changing consumer taste, rising sales of grocery products including frozen and chilled food among others.
- The manufacturers are involved in developing advanced packaging solutions for different end-use industries. Investments in research and developments to enhance the capabilities of South American metal packaging are supporting the market growth.
Figure: Brazil Metal Packaging Market Revenue, 2020-2026 (US$ Billion)
South America Metal Packaging Market Segment Analysis - By Type
The food & beverage cans
segment accounted for approximately 18% of the
market share in 2020 and is estimated to grow at a significant CAGR during the
forecast period. Cans are the most widely used package types compared to other
packing types. They are gaining
popularity in both developed and developing countries due to the high demand
for beverages. Cans are available in different sizes and shapes and they are easy
to handle. The growing consumption of diet cokes and soft drinks is boosting
the segment growth. Metal cans have a lighter environmental footprint and metal
is easy to recycle through natural processes. The drums segment is expected to
hold a significant share in the South America Metal packaging market. The
growing transportation of chemicals and vegetable oil is driving the market
growth for the drums segment.
South America Metal Packaging Market Segment Analysis – By Material Type
The commonly used materials in
metal packaging include aluminum and steel. The aluminum segment is accounted
for more than 40% of the market share in 2020
and is estimated to grow significantly during the forecast period 2021-2026. Aluminum
metals are flexible and support unique shapes and styles for advanced packaging
systems. Lightweight aluminum cans offer more accessibility and convenience,
especially for food and beverage products. The increasing environmental
concerns, along with the growing usage of aluminum cans due to their low
environmental impact are supporting the segment growth during the forecast
period. The aluminum metal packaging solution can be easily recycled and can
save up to 74% of the energy used to produce them.
South America Metal Packaging Market Segment Analysis – By Application
The food & beverage segment accounted
for more than 28% of the market share in 2020
and is estimated to grow significantly during the forecast period 2021-2026.
Metal packaging extends the shelf life of food & beverage products and
delivers protection against light, oxygen, and bacteria. The growing demand for
canned food in Brazil is driving the market growth during the forecast period.
The rise in awareness regarding the drawbacks of using single-use plastics
along with stringent government regulation on plastics are supporting the metal
packaging growth in the food & beverage industry.
South America Metal Packaging Market Segment Analysis - By Geography
Brazil held the largest share in the South America metal packaging market in 2020 up to 30%, owing to the presence of multiple end-users in the region. The presence of food & beverage processing companies such as JBS Brazil, Cosan, BRF, and Marfrig Global Foods among others are driving the Brazil metal packaging market. According to a research article, Brazil’s chemical industry is the third-largest industrial sector in the economy, representing around 10% of overall industrial GDP. According to the data published by the World steel organization, Brazil produced approximately 31MT of steel in 2020 and 32.6MT in 2019. Brazil holds about 80% share in total steel production in South America during 2019-2020.
South America Metal Packaging Market Drivers:
Growing food & beverage industry
The food &
beverage industry is one of the prominent end-user of metal packaging. The
growing restriction on plastic usage in food & beverage packing is driving
the metal packing market. According to Euro monitor analysis, retail sales in
the packaged food market in Brazil reached US$82.1 billion in 2020. According
to the data published by the Brazilian Food Processors' Association, in 2019,
the brazil foodservice industry accounted for US$117 billion. According to Food Export Organization, Brazil
is the 11th largest U.S. export market for food products in the Latin American
region. The organization also says that the total U.S. consumer food exports to Brazil
reached US$217.3 million in 2020. Argentina’s Secretary of integral policy on
drugs mentioned the country consumes the most alcohol per capita in Latin
America.
High recyclability rates of metal packaging
Recycling metals
minimize the use of Earth’s resources and decrease the level of greenhouse gas
emissions used in subsequent production. The well-established recycling
infrastructure for metal packaging in the region has contributed to its high
recycling rates. Aluminum and steel are the most recycled materials in the packaging
industry. Approximately 80% of steel packaging and 74% of aluminum beverage
cans are recycled in Latin America. Ball corporation is one of the largest
manufacturers of aluminum beverage cans in Brazil. According to the Brazilian
Aluminum Association, and, the Brazilian Association of Can Manufacturers, the
country recycled approximately 97.6% of beverage cans in 2019.
South America Metal
Packaging Market Challenges:
Growing usage of plastic in the packaging industry
Plastic is widely
incorporated in packaging applications because of its performance, cost-effectiveness,
and durability. Plastic packaging is used in different industries such as food
& beverage, pharmaceutical, consumer goods packaging, and cosmetic &
personal care among others. Plastic is used for manufacturing bottles, carry
bags, tubes, and trays among others. The low cost, water resistance, and
lightweight of plastic are driving the usage in the packaging industry. Plastic
products are also easily recyclable when compared to metal products. These are
some of the major challenges restraining the market growth for metal packaging.
South America Metal Packaging Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the South America Metal Packaging market. Major players in the South America Metal Packaging market are:
1. Alcoa
Incorporation
2. Sonoco
3. Amcor Limited
4. Ardagh Group
5. Ball Corporation
6. Crown
Holdings
7. Bway Corporation
8. Grief Incorporated
9. Silgan Holdings
10. Manaksia
Group
11. Shetron Group
Acquisitions/Technology Launches
- In August 2020, Ball Corporation acquired Tubex Aluminum Aerosol Packaging Business in Brazil. The company acquisition includes a manufacturing plant in Itupeva, which is near Sao Paolo, Brazil. The Itupeva plant includes eight extruded aluminum aerosol can line and produces personal care packaging for global and local customers in Brazil.
Relevant Reports
Packaging Adhesives Market - Forecast(2021 - 2026)
Report Code:
CMR 0145
Paperboard Packaging Market - Forecast(2021 – 2026)
Report Code: CMR 0435
Packaging Film Market - Forecast(2021 – 2026)
Report Code: CMR 0174
For more Chemicals and Materials Market reports, please click here