The metal packaging market - Italy (2023)

1.2 The metal packaging industry is in full bloom

The metal packaging industry is in full bloom; between **** and ****, the market is expected to grow at a CAGR of *.*% to reach US$ *** billion by ****.  

Global market size for metal packaging World, ****-****, in US$ billion Source: ****

Several factors are driving this demand. First, the intrinsic traits of metal packaging, including its preservative features, contribute to the convenience of this means of packaging. Indeed, metal packages permit an extended shelf life, preservation of taste, and nutrition intactness. Secondly, metals are highly recyclable. Steel and aliminuim have the highest recycling rates of all package materials, which correlates to overall demand in society for a more sustainable product development. MPMA states that **% of all steel ever produced is still in circulation today. Finally, demand for metal-based healthcare products, including trays, metal sterilizers and tablet wrappers are increasingly in demand. 

Although the Western World is dominating current demand for metal packages, Asia in particular is recording the highest growth numbers, devoted to a rapid pace of urbanisation which puts pressure on communities to find solutions for products to be consumed in a sustainable manner and with limited negative externalities. In light of this, India has for example created a consortium named the Aluminum Beverage ...

1.3 The European market is also growing

The European market for rigid metal packaging grew by an average of *.*% per year between **** and ****. Indeed, it has grown from a turnover of **.* to **.* billion euros. After stagnating between **** and ****, the market seems to be regaining its dynamism with a growth of *.*% between **** and ****

European sales of metal packaging Europe, ****-****, in billions of euros Source: ****

Italy is the European leader in this market, with production accounting for **% of the area's turnover, compared with **.*% for the United Kingdom, **.*% for Germany and **.*% for Spain, which is therefore in fourth place. France comes next with *.*% of turnover. These five countries account for **.*% of the zone's revenues

Breakdown of metal packaging production Europe, ****, in % Source: ****

The food industry is driving the growth of the sector, with cans and tins accounting for **% and **% of the market respectively in ****. Lids and caps represent **% of the market. The rest is divided between the general line (***), aerosols and specialities with **%, *% and *% of the market respectively. [***]

1.4 The Italian market has been growing steadily

The Italian metal packaging market has been increasing steadily for many years, reaching a value of *.*** billion euros in ****. However, the market has grown at a slow pace since ****, and it even experienced a *% drop in ****.

Valore della produzione di imballaggi leggeri in metallo Italia, ****-****, in miliardi di euro Fonte: Istat

In terms of weight, steel represents the majority of the total, while aluminum represents only a marginal portion. This proportion is reversed if we analyze the turnover; in this case, steel packaging represents **%, while aluminium packaging represents **%.

Ripartizione del mercato degli imballaggi leggeri in metallo per materiale Italia, ****, in % Fonte: Istituto Italiano Imballaggio

1.5 A drop in production during the Covid-19 crisis

The market for metal packaging experienced a drop in production during the lockdown caused by the Covid-** pandemic. Indeed, the industrial production index for the manufacture of "imballaggi leggeri in metallo" (***) experienced a marked drop.

The industrial production index (***) is a short-term indicator that measures the monthly evolution of productive activity, eliminating price variations. 

Prior to the outbreak of the Covid-** pandemic, the production of metal packaging in **** was following a positive trend, surpassing the production in ****. However, after an initial drop in February **** (***).

In August, the level of industrial production again experienced a fall, but it was higher than in ****, since the drop can be attributed to the cyclicality of production rather than to the Covid-** emergence. In fact, each year the months of December and August **** are those with the lowest activity. 

The drop, despite the good performance of the food industry, can be explained by the closure of plants during the lockdown. As a matter of fact, the decree enacted by the president of the council of ministers (***) closed **% of industrial activities as of March **rd. Even the remaining **% of companies continued to work at a very low rate, with few exceptions due to difficulties in logistics and ...

2.1 Metal ranks third among packaging materials

Metal packaging represents **.*% of total packaging sales in **** in Italy (***).

With the total packaging market estimated at **.* billion in ****, the opportunities to gain market share are significant. [***] However, recyclable plastics are not included in the ban and they represent an increasingly important part of plastic packaging with the development of PET.

Ripartizione del mercato del packaging per materiale Italia, ****, in % Fonte: Istituto Italiano Imballaggio

The first destination industry for metal packaging is food (***). The beverage industry, on the other hand, represents only a marginal share of metal packaging in Italy, with *.**%. However, the use of metal packaging in food was down *% from **** to ****, while its use in the beverage industry increased by *.**%.

Ripartizione degli imballaggi leggeri in metallo per tipologia Italia, ****, in % Fonte: Anfima

Fonte: Anfima

Zooming in on aluminium packaging, the main destination industry is beverages, which represents **.*% of the total. As a matter of fact, aluminum containers are widely used to store beverages because they allow to refrigerate the product quickly, are easily transportable due to their light weight and resistance, and they can be sold at public events. [***] In second and third position we find, in close proximity, the food industry (***).

Contenitori in alluminio: ripartizione dell'utilizzo apparente per ...

2.2 The food, beverage and cosmetic industry: drivers of the demand for metal packaging

As we've seen in section *.*, the main sectors which drive the demand for metal packaging are the food, beverage and cosmetic & pharmaceutical industry. Analysing each industry independently, we can get a better sense about the importance of metal packaging compared to packaging made out of other materials. 

The most used material to preserve food in terms of weight is cellulosic products (***), that represent **.*% of total packaging. Glass and plastic follow suit, with **.*% and **%, respectively. Steel is the fourth most used material, with **.*%, while aluminium represents only *% of packaging for food.

Materiali utilizzati per l'imballaggio di cibo Italia, ****, in % del totale delle tonnellate Fonte: Istituto Imballaggio Italiano 

In the beverage industry, plastic is still the preferred material used, with **% of total packaging in terms of value. Also in this case, steel and aluminium represent only marginal shares, but this time in reversed proportion. As a matter of fact, aluminium represents *% of beverages packaging, while steel represents only *%. 

Materiali utilizzati per l'imballaggio di bevande Italia, ****, in % del fatturato Fonte: Istituto Imballaggio Italiano

The most used material to pack cosmetics and pharmaceuticals is plastic, with **.*% of the total. In second and third position we find glass and rigid and flexible composite materials, with **% and ...

2.3 The increase in demand for sustainable packaging

As we've seen before, the packaging industry is tightly linked to the consumer products industry. The latter consistently monitors the opinion of consumers about numerous matters and often changes its production processes or offer to meet their needs. 

According to a survey carried out by Osservatorio Nomisma, the material that Italians prefer to preserve food is glass, with **% of preferences on average, followed by paper and cardboard, with **%. Aluminium is only mentioned *% of respondents as their favourite packaging material for food. 

Quale materiale preferisci per la conservazione degli alimenti?

Italy, ****, in %

Fonte: Osservatorio Nomisma Packaging Largo Consumo

In the last decade, consumers have become increasingly aware about the role of packaging in environmental pollution. The excess and incorrect disposal of packaging has caused several environmental alterations that have impacted the ecosystem of some territories. In particular, consumers condemn plastic in the first place, which is hardly biodegradable and causes more than **% of environmental pollution. [***]

When asked what they actively do to safeguard the environment, **% of interviewees declared that they start with recycling correctly. **% of respondents declared that they avoid or limit the purchase of plastic bottles, while **% declared that they avoid or limit the purchase of products with too much packaging. ...

3.1 The supply chain of metal packaging

Source: ****

Raw material suppliers: Steel is made from iron. It is produced either through the Blast Furnace, made from iron ore and coal (***) which is made from recovered steel. Aluminium is made through two processes: either through the Bayer process of refining the bauxite ore to obtain aluminum oxide, or the Hall-Heroult process of smelting the aluminum oxide to release pure aluminum Raw material processing+coating Coating is used to avoid corrosion of metals. Steel in particular is exposed to corrosion if the metal (***) is exposed to oxidation; to prevent this, materials such as paint, zinc, cadmium, aluminum, chrome, nickel, nickel-chromium, iron oxide, and silver is added to the steel. Aluminium is rust-resistant and thus involves no process of coating. Metal processing can involve many action points including recycling scrap metal, increasing the concentration of the desired metal, or even extracting the metal itself. This is for example the case for steel which is processed from iron (***).  Generally, coating protects the surface of metal food cans, prevents food spoilage and enhances the performance of the packaging material. Coatings are also used at the industrial level on food vats and tanks, and they are also used on the non-food contact side of ...

3.2 The production of steel and aluminium are following opposing trends

The production index of the code Ateco **.** gives un the trends in the production of metal packaging. The production of metal packaging is highly variable, with peaks in production in July and lows in December.

Indice della produzione industriale di imballaggi leggeri in metallo Italia, ****, in base ****=*** Fonte: Istat

The production of steel has steadily increased by *.*% since ****, reaching a value of ***.* thousand tons in ****.

Produzione imballaggi in acciaio Italia, ****-****, in migliaia di tonnellate Source: ****

On the other hand, the production of aluminium has decreased by **.*% since ****, reaching a value of **.* thousand tons in ****.

Produzione imballaggi in alluminio Italia, ****-****, in migliaia di tonnellate Source: ****

3.3 The metal packaging sector is becoming more concentrated

The number of companies in the sector has decreased significantly, with a reduction of **.*% since ****. The number of salaried employees, on the other hand has decreased by less than *%. This means that the sector is concentrating, with more and more employees per companies. As a matter of fact, the number of employees per company increased from ** to ** in only * years.

Numero delle imprese e lavoratori dipendenti occupati nella produzione di imballaggi leggeri di metallo Italia, ****-**** Fonte: Istat

It is interesting to highlight, however, that most companies in this sector are still SMEs, as more than half of the companies have less than ** employees. Only *.*% of companies have more than *** employees.

Quota delle imprese produttrici di imballaggi leggeri in metallo per classe di addetti Italia, ****, in % Fonte: Istat

The region with the most companies producing metal packaging is Lombardia, which counts ** enterprises, followed by Campania, with **.  Overall, the north has a higher concentration of companies, especially in Piemonte, Emilia Romagna and Veneto. The south, on the other hand, has little to no production of metal packaging, and in some regions, such as Basilicata, there is no company belonging to this sector.

Distrubuzione geografica delle imprese produttrici di imballaggi leggeri in ...

4.1 Offer overview

The offer overview can be described as follows according to the classification of metalpackagingeurope:

Aerosols : complete UV protection and excellent storage characteristics, which help prevent the penetration of moisture and oxygen. The product remains airtight thanks to a sealed lid, and is highly functional and durable. Cans and bottles can be adopted for all beverages. They cool down faster than other packaging, are lightweight and almost unbreakable. Caps and lids The bottles: ensure freshness, adapt to almost any bottle (***), are recyclable, etc. Cans used to store liquids, have great durability. Tin cans vitamins and nutrients are kept until consumption, even if this is several years after the canning date. Cans do not use any preservatives and still extend the shelf life of foods. They save up to **% of energy throughout the supply chain. General line the products in this range are generally impact resistant, from the small ** ml can to the *** liter barrel. It is widely regarded as the best packaging method. General line cans do not lose their contents, do not burst or break, and withstand extreme temperatures and pressures. Special packaging other metal packaging for special products.

The Instituto Italiano Imballaggio classifies the products in the following categories according ...

4.2 A significant drop in the price of steel and aluminum that is not reflected in metal packaging prices

The prices for raw materials used to produce metal packaging, mainly steel and aluminium, have been falling steadily since August ****.

The price of steel has decreased by approximately **% between August **** and January ****.

Indice dei prezzi alla produzione di acciaio Italia, ****-****, base ****=*** Fonte: Istat

The price of aluminium has decreased by approximately *% between August **** and January ****.

Indice dei prezzi alla produzione di alluminio Italia, ****-****, base ****=*** Fonte: Istat

These decreases in prices were not passed on to the industrial price of metal packaging. As a result, metal packaging prices increased slightly between August **** and January ****. A price peak was observed in May **** and a low was observed in October ****. Despite these two extremes, prices have remained fairly stable.

Indice dei prezzi alla produzione di imballaggi leggeri di metallo Italia, ****-****, base ****=*** Fonte: Istat

4.4 High levels of recycling are achieved in Italy

When metal packaging reaches the end of its use, steel and aluminum are collected and recycled, for infinite times, without loss of their intrinsic properties.

In ****, **.*% of steel packaging and **.*% of aluminium packaging placed on the Italian market was recycled. Metal packaging is the most recycled packaging in Europe. [***]

The largest flows involved open top (***). The remaining **% should be attributed to the item "other packaging". [***]

Tasso di riciclaggio degli imballaggi in acciaio in Italia Italia, ****-****, in migliaia di tonnellate Fonte: CONAI

Copy of Tasso di riciclaggio degli imballaggi in alluminio in Italia Italia, ****-****, in migliaia di tonnellate Fonte: CONAI

However, the process and execution of metal recycling is much more complicated than industry players claim. While consumers are willing to sort their waste and recycle it, it is not always profitable for industry to follow the same approach.

*** million tons of aluminum and **** million tons of steel are produced each year globally. To produce them, **% and **% recycled aluminum and steel are used respectively. However, the use of these materials is jeopardized by falling raw material prices, with margins that are shrinking, according to Ranjit Baxi, president of the International Recycling Bureau. A drop in raw material prices leads ...

5.1 Regulations

Italy is subject to European Community law. Within this legal framework, Directive **/**/EC on packaging and packaging waste is a central element. This directive was created in **** and has been in force since ****. Some of the points included in this scope and which are related to metal packaging in general are:

Recycling targets: By ****, at least **% of aluminium and **% of ferrous metals must be recycled. By ****, these figures should be **% and **% respectively. Form: The weight, volume and hazardous components of packaging must be reduced to a minimum. In addition, packaging design must respect adequate levels of recycling and energy recovery. Producer responsibility: Manufacturers in the metal packaging industry must meet waste management criteria.

The directive is subject to continuous amendment. Updates and changes can be followed here.

The Technical Packaging Commission of UNI is responsible for defining the characteristics and requirements of both primary packaging (***) in paper, glass, metal and plastic. 

UNI determines a method for assessing that a printed packaging does not present a risk - during the production, storage, transport processes, etc.. - to transfer inks or harmful substances present in the print to the side of the packaging that comes into contact with its content.

Regarding recycling, Ricrea ...

6.1 Segmentation

Source: ****

• Silfa
• Limea-Fisma
• Eurospray
• Crown Imballaggi Italia
• Tecnocap
• Trivium Packaging Italy
• Carcano Antonio
• Ball Beverage Packaging Italia
• Guala Closures