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Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
4.4.2.2 Metal Packaging will retain its Market Share
The main materials used to package beverages are metal, paper, glass, rigid plastic, flexible
plastic and combination materials. Each of these materials has different characteristics in terms of
quality, suitability, price and end use. Although facing the increasing competition from rigid plastic,
which has seen increasing presence in the market as a preferable beverage packaging material,
metal as a traditional beverage packaging material still maintain a considerable market share in the
beverage packaging market thanks to its high barrier nature, recyclability, and the innovations in
the metal beverage packaging market that cater for consumers’ demand for functional and
convenient packaging.
Both in the developing and developed regions, there has been increasing demand for the barrier
and nutrient retaining propertied of beverage packaging, to ensure the safety and functional of
beverage products. Consumers are more health conscious and more aware about the nutrient and
function of beverages. The growing beverage demand in emerging economies is also adding
unique elements to manufacturers’ marketing strategies, promoting the growth in metal beverage
packaging. A general trend for increasing demand as a result of emerging market growth has
been built upon by country-specific characteristics such as infrastructural challenges. On this note,
the ability of metal to preserve its product has increased the material’s appeal in nations with a
comparatively poor electricity infrastructure that hinders the ability of other packaging materials to
keep products fresh. Metal has been around for 200 years, it is recognised as being robust, a solid
food packaging solution. It is the heritage of metal and glass which is its strength; both have been
around a long time and are familiar products. Depending on the application they can be luxury
products – spirit bottles, or decorated embossed food cans, or commodity cans, jars and bottles.
The recyclability of metal is another factor aiding its growth within the beverage packaging market,
and will continue to cater for consumers and producers alike, who remain focused on sustainability,
cost-reduction, and efficiency within the production process. Recycling has a very significant effect
in terms of sustainability because the energy to produce the packaging material and an efficient
recycling system dramatically reduces the activity or energy associated to produce the package.
Metal is effectively a permanent material in that once it is recycled it can be transformed back
again into the package. The supply of recycled metal material is very important as a modern blast
furnace, 20% scrap metal is required to run it efficiently in the first place, the more scrap metal you
have the better it is in terms of running a blast furnace. Thus a value stream is being created
around this because this can be transformed into a number of metal applications including
packaging, and thus we are seeing very high recycling rates associated with it, above 70% in some
cases. This makes metal beverage packaging a very sustainable packaging solution and highly
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Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
5.5 German Metal Packaging Market 2015-2025
5.5.1 German Metal Packaging Market Forecast 2015-2025
Table 5.5 German Metal Packaging Market Forecast 2015-2025 ($billion, AGR %,
CAGR %, Cumulative)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-25
Sales $bn
5.9
AGR %
6.0
6.1
1.7
1.9
CAGR % 2015-20
6.2
6.3
6.5
1.8
1.8
1.7
6.6
6.7
6.8
7.0
7.1
7.2
1.8
2.1
2.2
1.8
1.8
1.7
2020-25
1.8
CAGR % 2015-25
72.6
1.9
1.9
Source: Visiongain 2015
Figure 5.17 German Metal Packaging Market Forecast 2015-2025 ($billion, AGR %)
8
5
7
Sales $bn
5
3
4
2
3
2
AGR %
4
6
1
1
0
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Year
Sales $bn
AGR %
Source: Visiongain 2015
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Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
7. Expert Opinion
7.1 The Can Makers
Visiongain had the opportunity to communicate with the Can Makers about recent market trends.
We would like to take this opportunity to thank them for their expert insights. Members of the Can
Makers work together specifically to promote the benefits of the drinks can and aid
communications between the industry and its customers: the brewers and soft drinks
manufacturers and the retailers, as well as the packaging industry, the media and consumers. The
Can Makers was the first organisation in Europe formed to promote drinks cans. It is now part of a
European network set up under the auspices of Beverage Can Makers Europe (BCME), which
includes similar organisations across Europe. More information about the organisation can be
found at www.canmakers.co.uk.
7.1.1 What Trends are you Currently Observing in the Metal Packaging
Market?
Visiongain: What trends are you currently observing in the metal packaging market?
The Can Makers: We can only speak for drinks cans, but we are seeing growth in volume and in
market share. For brands, cans offer a unique opportunity for retail stand out on shelf, a strong
pack which keeps drinks fresh, maintains integrity and much more. The can remains a pack of
choice for consumers and we’re pleased to see more bars and restaurants adopt it within their
packaging mix.
7.1.2 What are the Advantages and Disadvantages of Cans Comparing
to Other Metal Packaging Products, and Other Packaging Products?
How is the Beverage Can Market Responding to the Increasing Threats
from Plastic Bottles?
Visiongain: What are the advantages and disadvantages of cans comparing to other metal
packaging products, and other packaging products? How is the beverage can market responding
to the increasing threats from plastic bottles?
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Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
8.2.3 Ball Corporation Future Outlook: Packaging Segments
Table 8.8 Ball Corporation Packaging Revenue Forecast 2015-2025 ($bn, AGR %, CAGR
%, Cumulative)
Sales $bn
AGR %
CAGR % 2015-20
CAGR % 2015-25
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-25
186.6
7.6 7.9 14.1 15.5 16.1 16.9 17.5 18.2 18.9 19.7 20.5 21.3
3.8 77.6 4.5 4.2 4.6 3.8 4.1 3.9 4.0 4.2 4.1
17.1
2020-25
4.1
10.4
Source: Visiongain 2015
25.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Sales $bn
20.0
15.0
10.0
5.0
0.0
AGR %
Figure 8.10 Ball Corporation Packaging Revenue Forecast 2015-2025 ($bn, AGR %)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Year
Sales $bn
AGR %
Source: Visiongain 2015
Visiongain estimates Ball Corporation to experience strong growth in its packaging revenue in the
next decade. The CAGR between 2015 and 2025 will be approximately 10.4% without taking into
account any unforeseeable factors such as M&A activities and discontinued operations. Visiongain
estimates Ball Corporation’s packaging revenue for year 2015 to be $7.9 billion, before increasing
significantly to $14.1 billion in 2016.
The proposed acquisition of Rexam PLC will boost the packaging revenue of the company. The
estimated closing time of the acquisition is in 2016, and this is the reason for the 77.5% increase
visiongain expects to see from the company’s sales revenue in 2016. The acquisition is to create of
unique global metal packaging manufacturer that enjoys a broader global plant network and
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Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
Figure 8.12 Crown Holdings Revenue by Segment 2014 (% Total Revenue)
Americas Beverage
9%
26%
13%
North America Food
European Beverage
9%
24%
19%
European Food
Asia Pacific
Non-reportable
Source: Crown Holdings 2015; visiongain 2015
Figure 8.13 Crown Holdings Revenue by Geographic Area 2014 (% Total Revenue)
28%
32%
US and Canada
Weatern Europe
Developing Markets
40%
Source: Crown Holdings 2015; visiongain 2015
Figure 8.14 Crown Holdings Revenue by Product 2014 (% Total Revenue)
13%
Beverage Cans
34%
53%
Food Cans & Closures
Other
Source: Crown Holdings 2015; visiongain 2015
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Page 189
Metal Packaging Market Report 2015-2025: Prospects
for Leading Companies
How will Metal Packaging Compete Against Plastic Given Rising
Environmental Concerns?
Table 8.20 Toyo Seikan Group Packaging Products/ Services 2015 (Division, Product,
Specification)
Company Division
Product/Services
Specification
Can
Products include: TULC, aTULC, TEC2000, Draw
Wall Ironing (DWI) Aluminium Can, Welded Can, Lid
and Filling test equipment.
PET Bottle
A wide range of PET bottles, including PET bottle,
aseptic PET bottle, hotfill PET bottle, pressure
resistant PET bottle (CSD Beverages), pressure-heat
resistant bottle and large capacity alcohol PET bottle.
Can
Including DRD Can, inside PET laminated DRD can,
PC can, high quality design can, pascal can, dressy
can and double safety end.
Plastic Bottle
Lamicon Bottle, Lamicon Tube, MultiBLOCK, etc.
Cup
Lamicon Cup, Hi-Retroflex, and Oxyguard Containers
Pouch
Retortable Pouch, ERP and Retortable spout pouch
Plastic Bottles
Miscellaneous blow bottle and gradation bottle
Pouch
Floss pouch and Moisture Guard,
Aerosol Can
Aerosol can, PL can, mountain cap and gas release
cap
Can
18 Litre Can: Large-square formed welded can
Beverage Packaging
Food Packaging
Lifestyle & Household
Products
Industrial Use Can
Source: Toyo Seikan Group 2015; Visiongain 2015
8.6.2 Toyo Seikan Group Analysis
Toyo Seikan Group manufactures and sells metal, plastic, glass and paper packaging products
mainly to the food and beverage industry. Its primary product sales come from metal packaging.
Geographically, Toyo Seikan Group focuses on the Japanese market, with increasing interest in
China and Thailand, and other emerging Asian nations. It is in competition with most international
packaging companies who also operates in these geographical areas. Toyo Seikan may lack the
economies of scale that other companies who specialise in a single material can exploit and may
be uncompetitive if challenged on prices.
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