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The India Metal Packaging Market is expected to register a CAGR of 6.52% over the forecast period from 2022 to 2031.
Recyclability of metal packaging is one of the significant factors that is expected to over the forecast period. Like aluminum and steel, metal packaging materials are the two most robust raw materials for packaging due to the superior recycling infrastructure. Recycling of one aluminum can save enough energy to run a television for three hours. With the growing middle-income group population, changing lifestyles, and evolving consumer preferences, India's consumption rates are also rising steadily.
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– In June 2022, Hindalco Industries Ltd, a company of the Aditya Birla Group, Can-Pack India, and Ball Beverage Packaging (India), formed a consortium to popularize the use of aluminum beverage packaging. The consortium, called the Aluminum Beverage Can Association of India (ABCAI), advocates replacing plastic and glass with aluminum as packaging material. Moreover, the use of aluminum cans in the country is 5%, and the association's objective is to help its growth to about 25 % by 2030. Also, with the increasing consumption of alcohol, the usage of metal caps and closures is rising. According to CARE Ratings, the Indian alcohol market is expected to increase to INR 1,754,000 million by 2021, owing to which the demand for the caps of glass bottles may also increase.
– Moreover, the rise in the market for chemicals and petroleum lubricants from varied end-user industries and a mounting focus on strengthening the supply chain capability are expected to drive the need for industrial metal drums. According to Infraline Energy, India is the second largest lubricant consumer in the region, and the third-largest in the world, after the United States and China. During FY 2017-2022, India exported 13,000 metric tons of lubricants, and its production also increased from 2017 to 2018. This refers to the demand for and usage of metal drums and bulk containers in India. Factors owing to which metal packaging is a preferred choice of many paint manufacturers include toughness, extended shelf lives of metals, effective sterilization, and efficient airtight packaging
– Several global companies plan to enter the Indian market through significant investments in their local manufacturing plants. For instance, in June 2022, Ball, a US-based supplier of metal packaging, supplies beverage can units to companies such as PepsiCo and Coca Cola, which are their major customers in the Indian market. The company plans to grow its business in India, as it provides several growth opportunities owing to growth in modern trade and increasing urbanization. However, the increased usage of bioplastics, such as bagasse and other materials, in the food and beverage industry, is a critical challenge in the growth of metal containers.
– In an attempt to combat the COVID-19 outbreak in India, the packaging material choices are also expected to be affected significantly. Packaging designs and materials which will address the hygiene and consumer safety concerns and minimize the possibility of the survival of the virus on the packaging material are expected to be certain factors while deciding the packaging material. Hence, the adoption of metal packaging is likely to be on the rise, owing to its chemical properties. Also, the demand for food items such as dried and preserved foods, powdered and canned milk, canned meat, etc. are on the rise, the need for metal packaging is expected to increase as they support the storage of canned and frozen items.
Key Market Trends
Cans are Expected to Hold Significant Share
– Among different kinds of metal packages, such as cans, drums, bottles, caps, and closures, can have been the most popular. Ease of use and availability aided in the adoption of metal cans in several packaging applications over the last century. Additionally, consumer trends, such as a preference for small-size and multi-pack packaging formats, support the volume growth of the global metal cans demand. Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India. Therefore, most beverage companies in the country offer mini-cans, which generally contain smaller volumes of products and cost less than traditional canned products.
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– Two-piece cans and three-piece cans are typically available in aluminum, tin plate, and steel. The usage of cans is dependent on its application and industries. The can type differ depending on the market and the product application and is used for products such as fish cans, cheese cans, beverage cans, etc. Steel cans are usually preferred as they can be recycled at a faster rate. Aluminum two-piece cans are also used as aluminum can be drawn quickly and hence used in aerosols, home fragrance, etc. The use of aerosol in India is growing well, especially aluminum aerosol. Ball Corporation has already entered India, and soon, India is expected to become one of the largest production houses globally. Plus, the decorative cans market is also picking up India.
– According to Massilly India Packaging, three-piece cans' per capita consumption in India is very low compared to France. It is used for packaging milk and other decorative cans. The expenditure in India is 1/20 when compared to France and is 1/100 when compared to the USA. It is because the use of canned food is not the Indian culture, but the scenario is slowly changing. With the increase in micro families and working lifestyles, there is no time to cook. This factor is expected to stimulate the growth of processed food in the Indian market due to which the three-piece food cans have a high potential to grow. The adequate infrastructure is a significant challenge in India, but the Make in India initiative by the government is expected of great help to all the industries.
– Hindustan Tin Works Ltd offers its general line cans that are made out of the tin and not only provide highest barrier properties from oxygen, moisture, and bacteria but also act as excellent barriers from rodents and other pests to ensure that the products are safe inside the pack till it is finally consumed. These cans are used for baby food, protein powder, coffee, ghee, other powdered products, etc. These are available in a diameter range of 65-174 mm. Also, Hi-Can Industries Pvt Ltd produces high-quality tin cans of various sizes, specifically for the food and general can line industries. The company offers juice cans (size 202*504 and capacity 250 ml), condensed milk cans (size 300*302 and capacity 400 g). In the baby powder segment, the company provides protein powder cans, dry fruit cans, etc.
Food is Expected to Hold Significant Share
– Metal containers find applications in the food and beverage industry, as metal is suitable for protecting food content. In contrast, heavy-duty metal containers, such as drums and IBCs, are generally used to transport oil, chemicals, and bulk liquids. In the food market, the products using metal packaging do not lose their nourishing properties and keep their original tastes long. Also, the weight of metal packaging is low, and its resistance toward physical shocks is high. Such packaging solutions have low costs of storing, loading, and shipping. Also, Ball India projects the consumption of aluminum cans for storing beverages, food items in India has the potential to grow significantly from the present rate.
– Packaged food is one of the fastest-growing segments in the Indian packaging industry. It is expected to fuel the demand for metal packaging, as it ensures food quality, safety, and long shelf life. According to the Federation of Indian Chambers of Commerce & Industry (FICCI), the expenditure on packaged foods increases (at inflection point), due to the rise in per capita income, urbanization, and an increase in the number of working women. According to Agriculture and Agri-food Canada, the sales of packaged food in India amounted to USD 76,284.2 million in 2018, and it is expected to register a CAGR of 18% during the forecast period.
– In July 2022, JSW Steel Ltd, targeting the packaging industry, has rolled out of premium tinplate brand JSW Platina. The company introduced continuous annealing technology for making tinplate products in India due to which it ensures the availability of one of the best quality tinplate steel for packaging. Platina also offers the packaging industry a Made in India alternative by providing continuous annealed tinplate, which is, so far, entirely imported by packaging manufacturers. The technologically advanced product is well-positioned to reduce the foreign exchange burden of these manufacturers through import substitution with JSW Platina. JSW Platina has versatile applicability as a packaging material ranging from Food cans, Edible Oils, Ghee, and Vanaspati to a battery, aerosol cans, and crown corks.
– Moreover, according to the Foodservice Packaging Institute, in the Consumer Perceptions on Foodservice Packaging Survey in 2022, about 75% of the consumers opined that they are willing to pay more for a food or beverage item packaging is environment friendly. With metals having a better recycling rate compared to plastic materials are expected to gain significant growth in the food packaging industry in India. Since consumer goods companies grapple with supply chain challenges and labor shortage at their manufacturing plants amid the ongoing coronavirus lockdown, there is yet another mounting concern concerning the short supply of packaging material, which could pose a big challenge for the FMCG companies in India.
The India metal packaging market is quite competitive and is moderately fragmented that consists of significant individual players such as Ball India (Ball Corporation), Oricon Enterprises Limited, Casablanca Industries Pvt Ltd, Hindustan Tin Works Ltd. Many companies are increasing their market presence by expanding their operations or entering into strategic mergers and acquisitions.
– February 2022 – Oricon Enterprises Limited has entered into a Joint Venture (JV) agreement with Tecnocap Group, to incorporate a new company, Tecnocap Oriental Pvt Limited. The company will be engaged in the manufacturing of lug caps and located at Murbad in Thane district of Maharashtra. Oricon Enterprises Limited is involved in manufacturing and marketing packaging products comprising metal caps and closures, including crown caps. This joint venture marks the Tecnocap Group's full entry into the Indian and Far Eastern markets.
– January 2022 – Ball Corporation launched a new impact extruded aluminum bottle line that provides a circular solution to plastic pollution. With various shapes and sizes, this impact extruded aluminum bottle can be customized for numerous beauty, personal care, food, and beverage products. Unlike other substrates in these categories, which include plastic shampoo jars or bottles for cosmetics, Ball's aluminum bottles could be recycled countless times and repeatedly turned into other aluminum products.
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