Summary

The North American metal cans market was valued at USD 23.11 Billion in 2020. It is projected to be worth USD 27.27 Billion by 2026, registering a CAGR of 2.8% during the forecast period of 2021-2026. With a significant share in the metal can packaging market, the food, and beverage industry is witnessing massive demand amidst the COVID-19 pandemic, as the industry falls under the essential commodity. The lockdown enforced across the region due to the COVID-19 pandemic has bought a significant change in consumption habits. There has been an increasing demand for packaged food products, meat, vegetables, and fruits.​

- Metal cans are one of the perfect packaging solutions for the on-the-go lifestyle of many consumers in the region, and their convenience is topping the benefits list. These can be easily transported or carried to festivals, beaches, and outdoor and sporting events, whereas glass is mainly restricted due to its breakability. In addition, the increasing popularity of energy drinks and the introduction of new products, and the price and recyclability of cans are augmenting the studied market growth.
- Many brands are introducing new energy drinks. For instance, in 2020, Coca-Cola North America unveiled the first-ever energy drink under the Coke brand Coca-Cola Energy Cherry a flavor available exclusively in the United States. Their zero-calorie counterparts will be available nationwide in 12-oz. sleek cans.
- Furthermore, according to the Aluminum Association and Can Manufacturers Institute (CMI), 2020 report, the industry recycling rate of aluminum can account for 55.9% in the United States, and the Consumer recycling rate of aluminum can account for 46.1%. In addition, the value of material accounted for USD 1,210/tons.
- Moreover, the cosmetic segment in the region is also driving the growth of the metal cans market in the area as many cosmetic and personal care manufacturers prefer metal cans packaging for their products. For instance, according to Happi Magazine, the unit sales of leading deodorant vendors such as Unilever, Procter, and Gamble, Colgate Palmolive in the United States in 2020 accounted for USD 327.04 million, USD 219.79 million, and USD 38.49 million, respectively.
- Further, the government regulations and standards are responsible for the increased proliferation of metal cans in the region. Heavy consumption of canned food in North America is also responsible for the increase in the growth of the metal can packaging industry.
- Moreover, demand for recycled PET (RPET) is increasing. Brands such as PepsiCo, Coca-Cola, and Danone, have all called for a 50% use of RPET in their bottles by 2030. This is driving the growth of the plastic packaging market, thus, restraining the growth of metal cans.

Key Market Trends

Beverage is Expected to Account For Significant Market Share

- Metal cans are most widely used for beverages. The most notable trend of canned wine, cocktails, hard drinks and soft drinks is packaged in metal, driven by the need for portability in North America. The usage of metal cans in the beverage industry can be widely classified into alcoholic drinks and non-alcoholic drinks based on the nature of the beverage. Alcoholic beverages, such as beer, have historically used metal cans, while other kinds of liquor, like wine, traditionally served in glass bottles, are increasingly adopting metal cans.
- Moreover, beverage can manufacturers have reduced the weight by reducing the gauge required to fabricate the cans. Metal cans can support the carbonation pressure that is needed to package soda. Metal cans also resist forces up to 90 pounds per square inch. This factor makes the cans the favored choice for packaging in the beverage industry.
- Metal can manufacturers are increasing the production capacity in North America to address the supply chain disruption faced due to the shortage in metal cans. The President of the Ball Corporation has identified the demand to outstrip the supply until 2023. The aggressive demand and growth of metal cans in the beverage industry sparked multiple investments in the sector in the studied region.
- For instance, in February 2020, Crown Holdings announced its plans to expand its production capacity in North America to cater to the growing demand for beverage cans. The company announced two new lines in two manufacturing facilities in Kentucky and Washington, which are expected to be operational during the third quarter of 2021.
- Further, Ardagh Group announced in October 2020 that the two new high-speed beverages could manufacture lines in its production facility in Mississippi. The company announced that the investment is aimed to cater to the production of its patented sleek design line for various beverages, including hard seltzers, beer, energy drinks, and tea.

United States Accounts for the Largest Share

- Many players in the market are adding new lines to existing plants and are making productivity enhancements because of the can shortage issues due to the pandemic. For instance, in September 2020, Ball Corporation announced that it would open an aluminum beverage packaging plant in Pittston, Pennsylvania, by mid-2021 to serve the North American market as the at-home consumption grows due to the pandemic. The company initially planned a 6 billion can output expansion by 2021. Ball Corporation is looking forward to opening two new plants and add two production lines to the United States facilities by the end of 2021.
- Many restaurants and bars were closed with the pandemic, due to which canned alcoholic beverages witnessed a significant increase in sales. Also, many beverage manufacturers shifted their products into cans, which has put a strain on the aluminum can supply chain. To cater to the demand for cans, many manufacturers have been opening facilities to meet this ever-growing demand.
- For instance, in January 2021, Crown Holdings invested in the two new beverage can plant in Henry Country, Virginia, and Minas Gerais State, Southeast Brazil. The plant in Virginia will be supplying beverage cans to serve various categories, including sparkling water, energy drinks, carbonated soft drinks, tea, functional beverages, hard seltzers, beer, and cocktails. The company expands its North American supply network with the plant to address the growing market for standard and specialty beverage cans.
- Additionally, in April 2021, Crown Holding unveiled its plan to build its third new beverage can production facility in the United States. The plant will produce cans for sparkling waters, energy drinks, carbonated soft drinks, functional beverages, beers, among other beverages.
- Further, the companies are also contributing toward a sustainable circular economy. For instance, in February 2020, Hoffmann has launched a line of recycled steel-based tinplate cans, ‘RecyCan,’ made from recycled steel, such as used cans, closures, and crown corks.

Competitive Landscape

The North America Metal Cans market is moderately competitive. The major players with a significant share in the market are expanding their customer base across various regions. In addition, many companies are forming strategic and collaborative initiatives with multiple companies to increase their market share and profitability. Some of the recent developments in the market are:

- December 2020 - Ardagh has announced its purchase of a facility in Huron, Ohio, facility to start manufacturing its metal cans and planned to start production in late 2020. The company has aimed to produce beverage cans in multiple sizes for various categories, including sparkling water, soft drinks, tea, and alcoholic beverages.
- August 2020 - Ball Corporation has completed the acquisition of Tubex Aluminium Aerosol packaging that operates n Brazil. The acquisition is expected to expand the company’s aerosol packaging in the region and help the group improve financial performance by introducing innovative products to the market.

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Table of Contents

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of COVID -19 Impact on the Metal Can Market

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Recyclability Rates of Metal Packaging
5.1.2 Convenience and Lower Price Offered by Canned Food
5.2 Market Restraints
5.2.1 Presence of Alternate Packaging Solutions

6 MARKET SEGMENTATION
6.1 By Material Type
6.1.1 Aluminum
6.1.2 Steel
6.2 By End-user Vertical
6.2.1 Food
6.2.2 Beverage
6.2.3 Pharmaceuticals
6.2.4 Cosmetic and Personal Care
6.2.5 Other End-user Verticals
6.3 By Country
6.3.1 United States
6.3.2 Canada

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Crown Holdings Inc.
7.1.2 Ball Corporation
7.1.3 Silgan Containers LLC
7.1.4 Mauser Packaging Solutions
7.1.5 Ardagh Group S.A.
7.1.6 DS Containers Inc.
7.1.7 CCL Container Inc.
7.1.8 Independent Can Company
7.1.9 Technocap Group
7.1.10 Can-Pack SA
7.1.11 Allstate Can Corporation
7.1.12 Envases Group

8 INVESTMENT ANALYSIS

9 FUTURE OUTLOOK OF THE MARKET