South America Metal Packaging Market Size Forecast to Reach $12.8 Billion by 2026
The Growing Population Along With the Growing Demand for Food & Beverage Processing Is One of the Major Factors Driving the South America Metal Packaging Market.
(EMAILWIRE.COM, February 19, 2022 ) 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 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.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=18822
Report Price: $ 4300 (Single User License)
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.
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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.
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.
Related Reports:
A. Packaging Adhesives Market
https://www.industryarc.com/Report/11715/packaging-adhesives-market.html
B. Paperboard Packaging Market
https://www.industryarc.com/Report/15969/paperboard-packaging-market.html
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
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 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.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=18822
Report Price: $ 4300 (Single User License)
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.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=18822
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.
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.
Related Reports:
A. Packaging Adhesives Market
https://www.industryarc.com/Report/11715/packaging-adhesives-market.html
B. Paperboard Packaging Market
https://www.industryarc.com/Report/15969/paperboard-packaging-market.html
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
Contact Information:
IndustryARC
Venkat Reddy
Tel: (+1) 970-236-3677
Email us
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IndustryARC
Venkat Reddy
Tel: (+1) 970-236-3677
Email us
----
This press release is posted on EmailWire.com -- a global newswire that provides Press Release Distribution Services with Guaranteed Results