The aluminum foil packaging market has a production size of 3.2 MMT in the APAC region, 1,50,000 MT production size in LATAM, and 6,50,000 MT production size in North America. Procurement intelligence experts, Beroe project that the global aluminum foil packaging market will reach a production size of 6.4 MMT by the end of 2022. Beroe estimates the consumption of aluminum foil packaging will reach over $27 million by the end of 2022. It has been estimated that the APAC region will witness the fastest growth in the aluminum foil market of anywhere from 7.5% to up to 8% until 2022. Currently, the APAC accounts for 64% of the market.
The cost structure of aluminum foil production consists of mainly utility costs, raw materials cost, and labor costs. The utility costs contribute up to 8%, the labor cost contributes up to 8%, and the raw material costs contribute up to 75% of the total cost. About 10% of the costs are fixed costs. The top suppliers in the aluminum foil market include Rusal, Novelis, Hydro, Alcoa, Eurofoil, Aleris, and Constellis. One of the primary factors for an increase in demand was from the automobile industry. The increase in demand due to the high consumption of flexible packaging has given rise to the growth of the aluminum packaging market, especially in Germany, the US, and Canada.
There are many aluminum foil types, along with many aluminum foil uses. Rolled foil is a type of foil that accounted for about 39% of global demand in 2017. Backed foil is another foil that accounted for about 24% of demand in 2017, while the other types of foils accounted for about 42% of demand. Beroe’s market intelligence report states that rolled foil consumption will increase by 5% by the end of 2021. It is important to know about the share that the end-use applications have in the market. According to Beroe, converter foils account to 60% share, while technical foils account for 12% share, container foils account for 15%, and household foils account for 17% share.
Rolled aluminum foil is useful in the construction industry, packaging industry, and transportation industry. Beroe has estimated that the global rolled foil demand will increase by 5% until 2023. The largest market will be the transportation industry. Blister foil is helpful in the pharmaceutical industry. Backed aluminum foils are useful in foil tapes and so are useful for better adhesion and long durability. As emerging markets grow, the aluminum foil packaging market is likely to grow too. For example, regions like the UAE and India are going through industrialization, which has led to an increase in demand for industrial aluminum foils.
The packaging industry has over 40% of the market share when it comes to the aluminum foil packaging market. Since consumers prefer packaging that has less weight and is convenient, manufacturers have come up with advanced solutions. These innovative approaches will drive the demand in the right direction and will increase the growth of the market. The aluminum foil packaging market is likely going to see a boost because of aluminum pouches. These are hygienic products and help to increase the product’s shelf life because it doesn’t make any changes to the chemical properties when exposed to sunlight. Also, there is no loss in shape, either.
An important factor to note is the aluminum foil pouch that is laminated with polyethylene or PE films. This has seen a rise in demand in the past and is likely to drive the aluminum foil packaging market in the future too. Many of the manufacturers are bringing about changes such as a pouch with a clear visible view. These are likely to make them more appealing. The manufacturers will need to continuously work on their packaging along with evolving with the trends to ensure they stay on top of the game. The aluminum foil packaging market is driven by its use in the pharmaceutical market as well.
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The medical device market is likely to drive the aluminum foil packaging market even further in the next few years. This is because the aluminum foil pouch has the properties that are required to keep medical devices safe. That is, the aluminum foil pouch ensures there is no moisture trapped that can possibly harm the medical device that is stored inside. Moreover, the aluminum pouch is helpful to save from any type of contaminants. While the market might be flourishing, there might be some key challenges ahead. For example, other packaging solutions can impact the aluminum foil market negatively. Constant innovation and advances are necessary for the market to grow continually.
