global metal packaging trends and developments€¦ · portable packaging for ‘on-the-go’...

Global Metal Packaging Trends and Developments27 March 2019, Istanbul, Turkey

Presentation prepared for

© Copyright Smithers Information Ltd 2019

Contents

2

About Smithers Pira

Global Metal Packaging Industry – Overview

Global Metal Packaging Industry – Key Trends, Developments and Future

Opportunities

Top 3 Three Trends

Key Questions

About Smithers Pira

© Copyright Smithers Information Ltd 2019 4

About Smithers Pira

Part of the Smithers Group,

a global leader in delivering trusted

solutions by integrating science,

technology and business expertise

A proven and trusted global

partner since 1925;

A privately owned organisation

Operates from 3

Information Hubs in

Europe (UK), the US

(Ohio) and China

Serves a World-wide

Customer Base in our

chosen industries: packaging,

print, security print, paper

and food contact


…more about Smithers Pira

5

PRINT PAPER PACKAGING FOOD CONTACT

Delivering high value market and technical research, and consulting advice enabling you to make better decisions, faster

MARKET REPORTS

50 market reports on paper, print, packaging and other industrial

sectors

CONSULTANCY

Client Strategic and Technical consultancy

CONFERENCES

Producer of 25+ industryconferences each year

TECHNICAL TESTING

Technical laboratories & packaging testing facilities

• Operate from three offices in the USA and Europe

• Serve a world-wide customer base ranging from printers, paper suppliers, packaging materials suppliers and converters to packaging end-users and brand owners

• Worldwide authority on the packaging, paper & print Industries

• Work with a global network of associates consultants, interviewers, freelancers and experts

Global Metal Packaging IndustryOverview


Metal Packaging Industry – Overview

7

0 10,000 20,000 30,000

Other metal containers, etc.

Other cans

Aerosols

Metal caps & closures

Fabricated steel boxes, shipping barrels &drums

Bulk metal containers/containers forcompressed or liguefied gas

Food cans

Beverage cans

Global metal packaging sales by pack format, 2018, 2023 ($ million)

2023 2018

• The global metal packaging is valued ay ~$105 billion in 2018

• Global demand is likely to come from sectors such as packaged water, wine, RTD (ready-to drink) tea and coffee drink, craft beer

• Demand has been boosted by the growingproduction and export of products such as chemicals and pharmaceuticals, especially fromemerging economies, and the continuedperception of metal as the safest and most appropriate packaging material for hazardousgoods

• However, competition from rigid intermediate bulk containers (RIBCs) may impact future growth

Cans continue to dominate, holding around half of the

market share in 2018

This is likely to remain

unchanged by 2023

CAGR 2018-23: 1.6%


Metal Packaging Industry – Overview

8

0 5000 10000 15000 20000 25000 30000 35000

Australasia

Middle East and Africa

Eastern Europe

South Cental America

Western Europe

Asia

North America

Global metal packaging sales by region,

2018, 2023 ($ million)

2023 2018

• Eastern Europe is forecast to increase sales (over 12%) – compared to the period 2012-17, when it was down by ~12%

• Western Europe is expected to recover, growing 1.6% CAGR – compared to the period 2012-17, when it was down by ~11%

• North America sales are expected to fall by 1.6%

• Asia is expected to remain the best-performing region in the period leading up to 2023 (18% increase)

• Growth is also forecast in Middle East and Africa (up to 20%)

US has the world’s largest single market for metal packaging (>24% market share

in 2018)

It is followed closely by China (with 15%

market share in 2018)

CAGR 2018-23: 1.6%

Global Metal Packaging IndustryKey Trends, Developments and Future

Opportunities


Metal Packaging Industry – Drivers and Trends

10

US Steel pricing• economic and politic uncertainty are expected to drive tariffs upward during

the next yearsBisphenol-A (BPA)• stricter EU legislation will apply regarding usage of BPA

coatings in cans, specifically the migration limits

Beverage industry trends • consumers are increasingly preferring healthier drinks

• growth of the craft and non-alcoholic beer• appearance of more beverage varieties in cans

Convenience• changing consumer behaviours

influence demand for convenience product features such as ‘ease of opening’ and

portable packaging for ‘on-the-go’ consumption

Competing formats• there is an on-going competition from

flexible and stand-up pouches, but also from plastic cans

Industry 4.0is encouraging a transition towards the “smart factory”

Circular Economy/ Sustainabilitythe circular economy concept is becoming an increasingly important issue to all the value chain participants


Metal Packaging Industry – Cutting Edge Technology

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Aerosol dispensing technologiescontinuous improvement on the aerosol can manufacturers side and valve manufacturers

Decorative techniques enhance metal containers, creating tactile and visual appeal

Alternatives to BPAthere has been some experimentation with materials such as vinyl, acrylic, oleoresins and polyester; the lamination of plastics to metalis another alternative as it eliminates the need for BPA-based coatings

Digital printingoffers the possibility of personalised packaging boosting the brand status

and engaging with the consumers

New can end technologiessuch as easy-open or peelable variations, printed ends and tabs, full aperture ends, innovative closing systems, etc.

Thermochromic and UV inks

Self-heating/chilling cansinnovation in this area is driven by consumers convenience and potential energy consumption

Automation of handling for bulk metal packaging

this area is constantly growing supported by Industry 4.0 –automation and digitisation

Top 3 Three Trends


Design

Production

Consumption/ Use

Waste management

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Trend #1: Circular Economy

• Aluminium beverage cans are the world’s most recycled drinks

containers

• Lightweghting in recent decades has improved the sector’s

sustainability profile

• Circularity of the metal material is an ideal example mainly

because it can be constantly recycled

• As per Eurostat the overall recycling rate for aluminium beverage

cans in Europe is above 70%

• Within Europe, over 3 million tonnes of steel and aluminium

packaging are now recycled every year

Key Developments The Circular Economy Process

Pictures Source: Metal Packaging Europe


Trend #2: Industry 4.0

Advancedanalytics

Cloud computing

Cyber security

System integration

Internet of Things

Big Data

Autonomous robots

The ‘Smart Factory’

• The metal packaging industry is being transformed by:

• Rapid introduction of digitalisation

• Smart factory

• Internet of Things

• Full automation and robotisation

Source: Elfonchips

Key Developments


Trend #3: Decorative techniques – a world of creativity

• Manufacturers have embraced digital printing, which offers numerous opportunities

• Digital printing is ideally suited for many of the limited-edition products now being launched across the food and beverages industry, due to its effectiveness over shorter print runs

• Techniques such as embossing and debossing have become more widespread

• e.g. leading beer brands, such as Heineken and Stella Artois

• Tactile effects created using an overvarnish, which changes the appearance and feel of the can itself

• for applications such as beer, brewers are often keen to add a ‘wet’ or ‘frosted’ look to their packaging

Key Developments

Aluminum cans printed using digital printing technology

Source: The International Aluminium Institute

16

Key Questions


Key Questions

Are you prepared to change your thinking and strategy?

Do you understand the digitally-printed metal packaging value chain?

Have you developed your strategy plan in the metal packaging market?

Have you collaborated with players in the supply chain to develop the best performing product?

Are you prepared to create new business models?


If you need help to make better business decisions, please get in touch

Ania Krolak

Managing Consultant

Strategic Consultancy

Smithers Group

Leatherhead

United Kingdom

Phone: +44 1372 802 056

Email: [email protected]

mailto:[email protected]

Smithers Pira – the worldwide authority on the packaging,

paper, print and security industry supply chains

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