Aluminum Foil Packaging Market

According to Stratistics MRC, the Global Aluminum Foil Packaging Market is accounted for $28.9 billion in 2023 and is expected to reach $44.4 billion by 2030 growing at a CAGR of 6.3% during the forecast period. Aluminum foil is a key component in laminates and has numerous applications in food packaging. Its resistance to the resettling of moisture, oxygen, and other gases, as well as the impact of light, is often greater than that of any plastic laminate material. Aluminum foil packaging requires less energy and resources to manufacture than other packaging materials such as plastic or glass. This industry has experienced a significant increase, due to the expansion of the pharmaceutical and food and beverage industries. Aluminum is widely available on the planet and is entirely recyclable.

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.



Market Dynamics:

Driver:

Wide usage in food packaging industry

Aluminum foil is widely utilized in the food packaging sector due to its several benefits that increase product shelf life and quality. Its ability to keep things fresh for longer periods of time and to retain food flavor for longer periods of time is due to its moisture resistance, robust barrier characteristics, and oxidation resistance. Because of these characteristics, it is a beneficial packing material for food items that require protection from water vapor, oxygen, and stains, among other things. Furthermore, because of its small weight and low material prices, aluminum foil is a cost-effective solution for manufacturers.

Restraint:

Raw material price volatility

Raw material price fluctuations, particularly for alumina, can have a substantial impact on the aluminum foil packaging market. Alumina is a critical element in the manufacturing of aluminum, and fluctuations in its price have a direct impact on the cost of producing aluminum foil. The market is based on the mining of bauxite, which is processed into alumina and smelted to create aluminum. Any changes in the price of bauxite, alumina, or aluminum have an impact on the entire value chain, influencing the manufacturing cost and pricing of aluminum foil packaging items. Increased raw material prices can result in higher production costs and aluminum foil packaging prices, potentially reducing demand as buyers seek cheaper alternatives such as plastic packaging.

Opportunity:

Regulations and government support

Upcoming laws and government assistance have contributed to the industry's rapid growth, and they are likely to open up new prospects. Aluminum foil is more environmentally friendly than plastic since it is recyclable and reused. As a result, it is a tempting alternative for organizations seeking to comply with new regulations and reduce their environmental impact. Aluminum foil packaging, for instance, has the potential to play an important role as the emphasis on environmentally friendly packaging and the European Union's (EU) transition to a circular economy rise.

Threat:

Easy availability of substitutes and recyclability of aluminum foils

The availability of substitutes such as plastics and paper, which are cost-effective and offer strong resistance to moisture and environmental elements, also poses a challenge to the aluminum foil industry. The increased concern about the environmental impact of plastics has prompted the development of sustainable alternatives, reducing the demand for aluminum foil substantially. Furthermore, the recyclability of aluminum foil is one of the most significant issues affecting the industry. Although aluminum foil may be recycled to a considerable extent, it can be difficult to recycle when it has been heavily polluted with food waste, grease, and oils. Foil can get so contaminated that recycling becomes impossible on occasion. This is due to the possibility that the food and oils will contaminate the recycling process and eliminate the recycling equipment.

Covid-19 Impact:

During the COVID-19 crisis, the aluminum foil packaging market had considerable growth potential due to increased demand from medicinal products and ready-to-eat food. The global expansion of the aluminum foil packaging market has been fueled by the use of e-commerce platforms and online meal delivery applications. The supply chain of the aluminum foil packaging market was still hampered as a result of the nationwide lockdowns imposed due to the outbreak of COVID-19. As a result, revenue collection decreased.

The foil wraps segment is expected to be the largest during the forecast period

The foil wraps segment is expected to hold the largest market share over the forecast period. Aluminum foil wraps are mainly utilized in domestic aluminum foil wraps, food service aluminum foil wraps, and laminates, which are widely used in multilayer pouches, sachets, and cartons used by packaged food and cosmetic companies. Additionally, because of their strong moisture barrier capabilities, household consumers frequently buy foil wraps from supermarkets or convenience stores and use them to preserve food, cover baking surfaces, and cover meat products.

The food & beverage segment is expected to have the highest CAGR during the forecast period

Food & Beverage segment is estimated to witness lucrative growth over the projection period. Aluminum foil packaging creates effective protection against external influences like light and gases, improving the shelf life and freshness of processed or prepared food and beverages. Furthermore, the ease of use, cheap cost, protection from dust, moisture, and other pollutants, and sustainability provided by aluminum foil packaging contribute to its widespread use in the food and beverage end-use industry.

Region with largest share:

North America is projected to command the dominant position throughout the extended period. According to the US Dairy Export Council, dairy exports accounted for USD 4.8 billion. This dynamic situation in the dairy business requires manufacturers to focus on innovation in order to satisfy the growing expectations of consumers while adhering to domestic and international food regulations. Furthermore, the food business accounts for around 5% of the country's GDP and is still expanding due to increased demand for packaged food. Aluminum is on the list of enabled materials or coatings that can be used safely.

Region with highest CAGR:

Because of the increased availability of packaged dairy products through various retail channels as well as the growing customer preference for protein-based products such as yogurt, cheese, and butter, the market in North America is predicted to grow substantially. Furthermore, the region's changing consumer habits, along with a growing need for snack items, are boosting the demand for aluminum-packaged food products with prolonged shelf life and sterility.



Key players in the market

Some of the key players in Aluminum Foil Packaging market include Alcoa Corporation , Alufoil Products Pvt Ltd, Amcor Ltd, Bemis Co., Inc, Berry Global Group, Inc, China Hongqiao Group Limited, Clifton Packaging Group Ltd, Constantia Flexibles, Coppice Alupack Limited, ESS DEE Aluminum Limited , Eurofoil Luxembourg SA, Hindalco Industries Limited (Aditya Birla Group), Mondi Group plc, Novelis, Inc, Pactiv LLC, Penny Plate LLC, Printpack Inc, Protective Packaging Ltd, United Company RUSAL and Zhangjiagang Goldshine Aluminium Foil Co. Ltd.

Key Developments:

In June 2023, Amcor launches further developments of its high performing paper packaging range and invests in increased paper packaging manufacturing capacity in Europe. Paper packaging range in Europe to include heat seal sachets for dry culinary and beverage applications, such as instant coffee, drink powders, spices, seasonings, and dried soups.

In May 2023, Amcor, a global leader in developing and producing responsible packaging solutions, has signed a definitive agreement to acquire Moda Systems, a leading manufacturer of state-of-the-art, automated protein packaging machines.

In November 2022, RUSAL launched a new aluminum alloy specifically designed for additive technologies, which was developed by the Institute of Light Materials and Technologies. This new alloy offers high heat resistance, with a coefficient of thermal expansion (CTE) 1.5 times lower than traditional aluminum alloys, matching the CTE of steels and nickel alloys.

In August 2022, Hindalco Industries Limited partnered with Greenko Energies Private Limited to establish a renewable energy project that will supply 100 megawatts (MW) of carbon-free power. The project involves the development of 375–400 MW of wind and solar capacity.

In July 2022, Novelis, a sustainable aluminum solutions provider, announced that it is expanding its evercylce portfolio to the cosmetic packaging market, as Cosmetics are certified to contain 100% recycled aluminum and offer packaging customers in the beauty, skincare, and wellness space an infinitely recyclable solution compared to plastic alternatives.

In 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.

Products Covered:
• Blisters
• Pouches
• Foil Wraps
• Containers
• Other Products

Packaging Types Covered:
• Flexible Packaging
• Semi Rigid Packaging
• Rigid Packaging
• Other Packaging Types

Foil Types Covered:
• Unprinted
• Printed

Types Covered:
• Polyethylene
• Backed Foil
• Rolled Foil
• Other Types

Thickness Covered:
• 0.2 mm – 0.4 mm
• 0.09 mm – 0.2 mm
• 0.007 mm – 0.09 mm

Applications Covered:
• Container Foils
• Converter Foils
• Household
• Other Applications

End Users Covered:
• Food & Beverage
• Pharmaceuticals
• Tobacco
• Cosmetics
• Personal Care
• Trays
• Laminated Tubes
• Wraps & Rolls
• Bags & Pouches
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances