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.
Request a sample to get extensive insights into the Aluminum Foil Packaging Market
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.
To understand how our report can bring difference to your business strategy, Ask for a brochure
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.
Stuck in a neck-to-neck competition with other brands? Request a custom report on Aluminum Foil Packaging Market
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.
Read Our Latest Press Release:
Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals.
Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through ad-hoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories.
Transparency Market Research State Tower,
90 State Street,
Albany NY – 12207
USA – Canada Toll Free: 866-552-3453