Aluminum Foil Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Posted April 30, 2021 by manojshinde

The aluminum foil packaging market was valued at USD 17.9 billion in 2020 and is expected to reach USD 24.18 billion by 2026 and work at a CAGR of 3.27% over the forecast period (2021-2026).
The growing demand for ready-to-eat confectioneries and pharmaceutical products is expected to be the primary driver for the household aluminum foil market.

- One factor which is assisting the growth of the household aluminum foil industry is government regulations toward food safety and quality standards, which influences the manufacturers to develop effective packaging solutions that prevent food contamination.

- Aluminum pouches are increasingly being used in the food and beverage industry, due to their sturdy nature and offering resistance to dust, moisture, chemicals, and water.

- The increasing demand for fast-moving consumer goods, coupled with the increasing economy, is expected to lead to the high growth of the market in APAC.

- Aluminum foil is increasingly being merged with flexible films to create lightweight packages. The packaging of pet food, tuna, coffee, and soups alone produces 13 billion packages across the globe, emerging as viable alternatives for conventional plastic packaging.

- Concerns over the patient perception and reception of the AI technologies is expected to hinder the market growth.

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Key Market Trends

Foil Wrappers Accounts for Significant Share in the Market

- The food, tobacco, and cosmetics industries are expected to be the major drivers for the growth of aluminum foil wraps over the forecast period.

- The global cigarette market has shown a steady growth in the review period, and this growth is expected to continue over the forecast period as the next generation of tobacco and nicotine products, such as e-cigarettes, are increasingly being commercialized

- Statistics released by the British American Tobacco estimated that around 5,600 billion cigarettes are consumed each year worldwide.

- An aluminum foil wrap provides certain characteristics, such as dead fold and embosses ability, which cannot be obtained by other methods of packaging materials.

- Companies have been identified to take advantage of aluminum foil's unique barrier properties to safeguard tobacco products against moisture, deterioration, aroma transmission, and bacteria by sustaining a micro-climate in the package.

- Increasing the tobacco industry is expected to proportionately push the adoption of aluminum foil wraps over the forecast period.

- APAC's increase in the urban population can be attributed to the increase in the usage of aluminum foil, which is consistently increasing in countries like South Korea and China. North America has a huge usage penetration for the aluminum foil market but the usage still has scope as according to the US Department, American households only use about one to three foil wraps per day. But the usage beyond is very minimal, which leaves span for market capture.

North America Accounts for Significant Share in the Market.

- Though the country’s exports of aluminum foil were up till 2013, the robust domestic demand for aluminum has caused an increase in aluminum foil import from China, whose foil shipments to the United States have increased almost 10 fold, accounting to around 265 million pounds, in the last decade.

- The food industry accounts for around 5% of the country’s GDP and is still growing, owing to the greater demand for packaged food. With the Food and Agriculture Organization of the United Nations (FAO)-specified guidelines for packaging of food products, aluminum finds its place in the list of approved materials or coatings that can be used safely.

- There is a rising availability of packaged dairy products through various retailing channels, along with the increasing consumer preference toward protein-based products, such as yogurt, cheese, and butter, which are expected to drive the adoption of dairy-based packaging in the United States.

- The US cheese shipments to China, South Korea, and Mexico increased by more than 25% each, and exports to Japan and Southeast Asia increased by 16% and 8%, respectively. Furthermore, the changing consumer lifestyles in the region, coupled with the growing demand for snack products, is driving the demand for aluminum-packaged food products that offer an extended shelf life and sterility.

- According to the US Dairy Export Council, dairy export accounted for USD 4.8 billion. This dynamic situation of the dairy industry is prompting product manufacturers to turn toward innovation to meet the increasing needs of the consumers, as well as adhering to the domestic and international industry food standards.

Competitive Landscape

The aluminum foil packaging market is highly fragmented due to low entry barriers and growing demand. Some key players in the market are Amcor Limited, Constantia Flexibles, Zenith Alluminio Srl, Plus Pack SAS. Some key developments in the market are:

- April 2019 - Tetrapack announced connected packing platform which will transform the milk packing and juice packing market into interactive information channels, full-scale carriers, and digital tools.

- July 2018- Nicholl Food Packaging Ltd made a unique skin pack aluminum poultry tray and film combination, the first of its kind on the foil packaging market. The innovation is aimed at poultry processors. The product combines the convenience of a chicken-shaped aluminum foil tray and shelf-life extension to minimize the potential for food waste.

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Issued By Statzy Market Research
Country India
Categories Miscellaneous
Tags aluminum foil packaging market , aluminum foil packaging market forecast , aluminum foil packaging market share , aluminum foil packaging market size
Last Updated April 30, 2021