Aluminum Foil Packaging Market
Aluminum Foil Packaging Market (Thickness: 0.007 mm - 0.09 mm, 0.09 mm - 0.2 mm, and 0.2 mm - 0.4 mm; Foil Type: Printed and Unprinted; Application: Food [Dairy, Bakery & Confectionary, Ready-to-eat, and Others], Beverages, Pharmaceuticals, Personal Care & Cosmetics, and Others; and End Use: Bags & Pouches, Wraps & Rolls, Blisters, Lids, Laminated Tubes, and Trays) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2025
Environment-friendly Aluminum Foil to Witness High Demand from Packaging Sector
Consumer preferences coupled with evolving regulatory regulations are some of the leading factors that have a strong influence on the various aspects of the food & beverages industry, including packaging, ingredients, and product information. Modern day consumers are increasingly demanding environment sustainability from several industrial sectors and a similar trend can be observed across the food packaging sphere. The food packaging sector has gradually matured into a multi-million industry due to which, innovative, cost-effective, and eco-friendly products and concepts have hit the market. The popularity of aluminum foils has experienced considerable growth over the past decade, due to its exceptional ability to protect food items from external factors, such as moisture, oxygen, and bacteria, among others.
The demand for aluminum foil has witnessed consistent growth over the past decade, particularly from the food & beverages sector. As packaging trends around the world continue to evolve, the adoption of lightweight, easy-to-use, and cost-efficient aluminum foil across various end-use industries, such as food & beverages, pharmaceutical, and construction, have experienced substantial growth. The booming on-the-go food trend, mainly in the urban areas of the world, is another factor that is expected to provide an impetus for growth of the global aluminum foil packaging market.
These factors coupled with growing interest levels for convenience packaging are expected to steer the global aluminum foil packaging market past the US$ 31.5 Bn mark by the end of 2025. In addition, increasing adoption of aluminum foil in the manufacturing of an array of packaging containers is another factor that is expected to boost the overall growth of the aluminum foil packaging market during the forecast period.
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Food & Beverages Industry to Provide Lucrative Opportunities to Market Participants
The soaring demand for aluminum foil from the food packaging sector is expected to play a key role in boosting the overall prospects of the aluminum foil packaging market during the forecast period. The high demand for aluminum foil can be attributed to various benefits of the product, including optimal thermal insulation, flexible packaging, and favorable physical characteristics. In addition, aluminum packaging has gained considerable popularity over the past few years, as it is non-toxic in nature, chemically neutral, and corrosion resistant.
While the adoption of aluminum foil from the food & beverages sector is expected to remain the highest, market participants are increasingly focusing on the potential avenues across the pharmaceutical packaging space. Due to increasing pressure from regulatory bodies and high demand for green packaging practices, aluminum foil has emerged as a feasible packaging alternative as it is recyclable. As per the research carried out by Transparency Market Research, the adoption from the pharmaceutical sector is likely to grow at a faster rate than that of the food & beverages sector due to which, capitalizing on the opportunities in pharmaceutical packaging will remain key to gain advantage in the current market landscape.
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Regulatory Pressure Drives Pharmaceutical Companies to Opt for Sustainable Packaging Materials
Regulatory bodies around the world continue to pressurize various industrial sectors to minimize their packaging usage. Although considerable uncertainty looms around how these objectives are likely to be accomplished, several sustainability initiatives have been put forward over the past few years– a trend that is expected to deeply impact the adoption of recyclable aluminum foil for packaging requirements in different industries. Aluminum foil continues to remain the gold standard for packaging, particularly in the pharmaceutical sector due to its exceptional barrier properties and other benefits. Leaner production models across the pharmaceutical packaging sector are likely to offer environmental benefits for operators involved in the current market landscape.
At present, players operating in the aluminum foil packaging market are increasingly focusing on regulating the quantity of aluminum foil in the inventory to address the challenges across the supply chain and manage complexities pertaining to stock-keeping units (SKUs). In addition, market players are also increasingly emphasizing on decreasing packaging complexities and improving the overall operational efficiency to cut through the competition.
Demand from Food Sector Drops amid COVID-19 Pandemic
The ongoing COVID-19 pandemic is expected to have a strong impact on the different facets of the aluminum foil packaging market. While lockdowns imposed in various parts of the world as a preventive measure to contain the transmission of the novel coronavirus has created several barriers across the supply chain in the current aluminum foil packaging market, market players are likely to chalk out new strategies to overcome this uncertain period for the business.
While the demand for aluminum foil is expected to remain sluggish from the food & beverages sector in 2020, the pharmaceutical sector is likely to provide considerable opportunities amid the ongoing COVID-19 pandemic. As the demand for medicines such as antibiotics and other types of COVID-19 drugs continues to rise exponentially, the demand for aluminum foil from the pharmaceutical packaging sector is expected to provide considerable boost to the aluminum foil packaging market during the ongoing health crisis.
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The global aluminum foil packaging market is expected to grow at a moderate CAGR of 5% during the forecast period. Factors that will influence the market growth include high demand from the food & beverages sector, introduction of innovative packaging concepts, exceptional functional properties, and environmental benefits. The ongoing COVID-19 pandemic is likely to have a negative impact on the demand from the food & beverages sector. However, market players should tap into opportunities from the pharmaceutical sector amid the ongoing health crisis, as the demand for COVID-19 medication continues to grow at a rapid pace.
Aluminum Foil Packaging Market: Overview
- According to Transparency Market Research’s latest report on the global aluminum foil packaging market for the forecast period of 2020-2025, the market is estimated to be driven by the growing demand for wraps & rolls in the food service industries, as a result of grab-and-go breakfast trend
- The global aluminum foil packaging market is expected to expand at a CAGR of 5% during the forecast period. Several pharmaceutical manufacturers also prefer aluminum foil packaging, owing to its high barrier properties and flawless print finish for blister packs, lids, bags & pouches further lifting up the growth of aluminum foil packaging market across the globe
Emphasis on Consumer Convenience and Eco-Friendly Packaging
- The global aluminum foil packaging market is largely driven by consumer convenience and therefore, vendors need to focus on consumer-friendly designs of packaging solutions, which include features such as easy-open, ready-to-cook packaging, re-sealable packaging, etc.
- In addition, increasing awareness among consumers regarding environmental impact of materials used in packaging and products has led to several people prioritizing environment-friendly brands
- According to independent estimates, almost 75% of almost one-billion tons of aluminum ever produced is still in active use across various industry verticals, including aluminum foil packaging. This property of maximum recyclability of aluminum presents numerous opportunities to dealers to augment their product portfolio with more aluminum foil packaging solutions, coupled with a solid focus on consumer convenience.
Integration of Components and Growing Application in Various Industries
- A recent trend observed in the market is the growing demand for aluminum foil packaging due to its versatility, ease of use, and recyclability. Aluminum foil is one of the most consumed aluminum products across the world. Aluminum foil packaging can provide complete insulation to light, oxygen, moisture, and bacteria making it the perfect product for food, pharmaceuticals, and personal care & cosmetics packaging. Since, aluminum foils are mostly used in packaging applications, developed economies are the top consumers of this foil.
- North America and Europe have witnessed increased growth in the packed food market, creating an absolute need for good quality high barrier packaging solutions. Ready-to-eat meals and processed food market have witnessed significant growth, resulting in increased demand for high barrier materials such as aluminum foil packaging.
- According to the European Aluminum Foil Association (EAFA), almost 3/4th of the foil produced in Europe is consumed in aluminum foil packaging, i.e. flexible packaging and household foil. The European market has witnessed solid performance from ‘thin-gauge’ foil, which is mainly used for flexible packaging and as house foils.
Aluminum Foil Packaging Market: Key Findings
- Globally, 0.09 – 0.2 mm thick aluminum foil packs are estimated to dominate the aluminum foil packaging market by end of 2025, with more than half of the market share, due to its high and stable quality from manufacturing to service life
- As per foil type, unprinted aluminum foil packaging remains prominent in the global market. Unprinted aluminum foil is mostly preferred as it is odor-free, and has good opacity and higher reflectivity for food packaging.
- Among foil packaging applications, the food segment is anticipated to dominate the market during the forecast period. Aluminum foil packaging is mainly used in ready-to-eat meals and bakery & confectionary.
- As per the TMR analysis, wraps & rolls are highly preferred formats in the aluminum foil packaging market. Therefore, by the end of 2025, these packaging formats are expected to account for more than 35% of the market share. Following this, the aluminum foil packaging market for blister packs is expected to gain significant market share during the forecast period.
- In terms of market share, Asia Pacific is the prominent region in the global aluminum foil packaging market. Expansion of food & beverages, online food service, and pharmaceutical industries is the key factor in the rapid growth of the aluminum foil packaging market in Asia Pacific.
Aluminum Foil Packaging Market: Competition Landscape
- TMR analyzed that the global aluminum foil packaging market is slightly competitive, owing to existing big players and entry of some local players. This completion among key players is carefully studied based on developments, strategies, and segmental revenue of the company over the past five years.
- Key players operating in the aluminum foil packaging market are
- China Hongqiao Group Limited
- United Company RUSAL Plc
- Amcor PlcHindalco Industries Ltd.
- Hulamin Ltd
- Alcoa Corporation
- Ess Dee Aluminium Ltd.
- Novelis Inc.
- Pactic LLC
- Penny Plate, LLC
- Alufoil Products Pvt. Ltd.
- Wyda Packaging (Pty) Ltd.
- Nicholl Food Packaging.
- TMR has distinguished these aluminum foil packaging market players as per their segmental earnings into different tier slabs. Among these players, Pactic LLC, United Company RUSAL Plc and Alcoa Corporation are identified as Tier 1 companies. The Tier 2 players includes Hindalco Industries Ltd, Amcor Plc, and Penny Plate, LLC. Tier 3 players are China Hongqiao Group Limited, Hulamin Ltd., Ess Dee Aluminium Ltd, Novelis Inc., Eurofoil, Wyda Packaging (Pty) Ltd., Nicholl Food Packaging, etc.
COVID–19 Likely to Affect Impact Market Opportunities in 2020
- Post COVID–19, the global aluminum foil packaging market is expected to decline in 2020. This is mainly due to the ongoing challenges faced in the expansion of key end users, including food & beverage industries and food services providers, which are the biggest customers of aluminum foil packaging.
- In the global pandemic of COVID–19 where all other industries are struggling to remain open or continue their operations, pharmaceutical industries are continuously accessing their operations in support of COVID–19 treatment needs
- The pharmaceutical industry is emerging as a promising end user, as the demand is high from this sector for applications such as blister packs, lids, and pouches, and other packaging products. TMR suggests that players operating in aluminum foil packaging market should focus on the pharmaceutical industry in order to gain profits in the declining markets.
- Moreover, disruption of product management, distribution network, continuously changing financial conditions & tariffs in many countries amid the COVID-19 pandemic, and China’s unfair commercial practices at global levels are impacting the demand and supply of aluminum foil packaging products
Aluminum Foil Packaging Market – Scope of the Report
Transparency Market Research (TMR) started a new study on the global aluminum foil packaging market providing forecast for the period of 2020-2025. In the study, growth opportunity for the aluminum foil packaging market has been elaborated. The report provides valuable insights, which enable readers to make winning decisions for the growth of their businesses. The report highlights significant factors that are constantly determining the expansion of the aluminum foil packaging market, untapped opportunities for manufacturers, trends and developments, and other insights across various key segments. Macroeconomic factors that are directly or indirectly affecting market growth are also incorporated in the report.
Key Questions Answered in TMR’s Aluminum Foil Packaging Market Report
- What will be the impact of COVID 2019 on aluminum foil packaging market?
- Which application will be the most lucrative for aluminum foil packaging?
- What will be market size for aluminum foil packaging by the end of 2025?
- Which is the most preferred foil type for aluminum foil packaging in the global market?
- Which region will remain most lucrative for market growth?
- Which are the top five countries of aluminum foil packaging market?
- Which end use segment holds maximum share of the global aluminum foil packaging market?
- Who are major key players in the aluminum foil packaging market?
Key indicators associated with the aluminum foil packaging market have been calculated thoroughly in the report. The study enumerates vital market dynamics such as key drivers, challenges, and trends, along with opportunities in the global aluminum foil packaging market. A comprehensive study on the value chain, which includes component suppliers, manufacturers, distributors, and end users have been incorporated in the global market report. Other key aspects laid down in the market include pricing strategy of leading market players and comparative analysis of aluminum foil packaging. Furthermore, forecast factors and forecast scenarios of the aluminum foil packaging market have been covered in the report to understand the future prospects of the market.
Y-o-Y growth comparison, volume and revenue comparison, and market share comparison of various market segments have been provided in the report. The aluminum foil packaging market has been analyzed at both regional and country levels.
The report delivers an exhaustive assessment on the structure of the aluminum foil packaging market, in tandem with the dashboard view of all leading company profiles in the report. Every company’s share analysis on market players have also been presented in the report, apart from the footprint matrix of profiled market players. The report depicts the presence of aluminum foil packaging manufacturers by leveraging an intensity map. It also highlights key end users for aluminum foil packaging.
The report includes the company overview of key players. Some of the key companies profiled in the aluminum foil packaging market report include China Hongqiao Group Limited, United Company RUSAL Plc, Amcor Plc, Hindalco Indistries Ltd., Hulamin Ltd., Alcoa Corporation, Ess Dee Aluminium Ltd., Novelis Inc., Eurofoil, Pactic LLC, Penny Plate, LLC, Alufoil Products Pvt. Ltd., Wyda Packaging (Pty) Ltd., and Nicholl Food Packaging.
A realistic methodology, along with a holistic approach makes the base for sharp insights, which are provided in the aluminum foil packaging market for the study evaluation period. The TMR report comprises of detailed information on growth prospects, along with riveting insights into the forecast assessment of the market.
Extensive primary and secondary researches have been employed to garner keen insights into the forecast study of the aluminum foil packaging market. The report has further undergone a cross-validation by in-house professionals to make the aluminum foil packaging market report one-of-its-kind with the highest credibility.
Aluminum Foil Packaging Market – Segmentation
The global aluminum foil packaging market has been divided on the basis of thickness, foil type, application, end use, and region. Each of these segments are analyzed to provide readers with holistic view of the market.