The metal packaging market - United States (2023)

The global metal packaging market has shown signs of expansion, driven by the attractiveness of metals such as steel and aluminum for their durability, efficiency in space, preservation capabilities, and high recyclability. By 2022, the industry is projected to reach a market size of $153 billion, growing at a CAGR of 3.3%. Despite its promise, metal packaging comprises a relatively small portion of the overall packaging market. The US has been the largest market, holding about 13% share, and despite facing price hikes due to tariffs on steel and aluminum imposed by President Trump, the market has since stabilized.

M&A activity in the US dipped in 2020 due to COVID-19 yet saw the highest deal flows globally, with 75 deals amounting to around $2.13 billion. However, there seems to be a discrepancy in public knowledge about metal recycling compared to other materials like cardboard. Major global metal packaging manufacturers like Crown Holdings and Ball are significant players with revenues of $11.67 billion and $11.64 billion, respectively, helping to consolidate the industry. Despite recent volatility, M&A activity in metal packaging was off to a strong start at the beginning of 2020. The trade war's impact on US pricing has eased, but mixed effects were observed on domestic producers. With the ongoing increase in metal packaging consumption, the market suggested upside potential for metal as an environmentally favorable alternative to other packaging materials.

Emergent Trends in the U.S. Metal Packaging Market

The metal packaging market in the United States encompasses a range of players such as mineral and petrochemical producers, suppliers, and end users across various industries. Despite its small share in the overall packaging market, amounting to around 12%, this sector has demonstrated potential for significant expansion, especially driven by its durability, space efficiency, and high recyclability. As of recent valuations, companies like Ball and Crown dominate market presence both domestically and internationally, suggesting robust industry prospects. The trade war initiated by President Trump originally caused an uptick in steel and aluminum prices but effects seemed transient, with current price levels resuming to their norm. This has been corroborated by reported company layoffs due to initial raw material cost hikes but was later offset by market entries of international firms exempt from tariffs. Notably, the U.S. still witnesses the highest flow of M&A deals in this sector globally, with 75 deals rounding up to about US$2.13 billion. With respect to metal packaging growth, the market is forecasted to bloom, with expected growth at a CAGR of 3.3%, aiming to hit the US$153 billion mark by 2022.

Driving factors include the preservation capabilities of metal packaging, its sustainable profile evidenced by high recycling rates, and rising demand in healthcare products. Asia, specifically India, is pinpointed as a major growth contributor, aiming to amplify its use of aluminum cans substantially, from roughly 5% to around 25% by 2030. Moreover, in Europe, where 98 billion units are produced annually, per capita consumption sits at about four units per week, with Germany being a leading importer of metal packaging in the first half of 2020. The recyclability of metals like aluminum and steel remains a strong suit for the industry. In the U.S., with nearly 50% of aluminum cans being recycled and around 80% of all produced steel still in use, recycling trends, however, have seen a slight decline.

Paradoxically, a survey revealed a knowledge gap, with only 8% of adults aware of metals being among the most recyclable packaging materials. Market segmentation paints a picture of a few dominating entities. Specifically, Crown Holdings and Ball's robust market presence in metal can manufacturing indicates a concentrated market structure, with their combined market shares reaching over 30%. The other metal container manufacturing sector, while less concentrated, still shows a reliance.

Key Market Players Dominating the Metal Packaging Landscape

The metal packaging industry might represent a more modest share in the overall packaging market, but its significance is reinforced by the presence of some heavyweight players who have established themselves as global leaders in this sector. Notable among these are companies like Ball Corporation, Crown Holdings Inc., Ardagh Group, Mauser USA LLC, and Industrial Container Services (ICS). These key players have a broad geographic footprint and cater to an extensive range of end-use industries, including food and beverages, healthcare, and consumer goods.

• Ball Corporation is one of the titans in the metal packaging industry, known for its extensive range of beverage cans, which swiftly cool their contents and boast unparalleled durability and lightweight properties. The company operates globally, serving customers not just in North America but also in broad international markets.
• Crown Holdings Inc. is another prominent name in the metal packaging sector. Crown's speciality lies in an array of products from food cans that effectively preserve nutritional value and taste to aerosol containers that protect the integrity of hygiene and health products. Their steel and aluminum packaging solutions are widely sought after for their preservation capabilities and sustainability.
• Ardagh Group has made a mark in the industry with its diversified packaging solutions. The group is well-regarded for its flexible and creative packaging services that meet the dynamic needs of the modern consumer - ranging from robust glass packaging to versatile metal cans and bottles.
• Mauser USA LLC has carved out a significant niche in the manufacture of industrial containers, focusing on a variety of metal containers vital for industrial uses. Mauser's contribution to the industry is particularly noted for their sturdy drums used to store and transport liquids safely.
• Industrial Container Services (ICS) stands as a strong competitor in the market specializing in producing and refurbishing industrial containers. Their commitment to quality and service has made them an important player in the supply chains of various industries. These market leaders not only play pivotal roles in driving innovation and ensuring product safety and longevity but also contribute significantly to the environmental aspect of packaging through constant efforts in promoting the recyclability of metal materials. Their operation scales, technological advancements, and strategic market positioning allow them to command significant influence and set industry trends within the metal packaging sector.

As the industry sees growth driven by sustainability trends and the benefits that metal packaging offers, these players continue to adapt, expand, and refine their strategies to maintain their stronghold within the market. With their impressive track records and proven resilience, they represent the foundational pillars of the metal packaging industry.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 01/09/2023

Summary and extracts

List of charts presented in this market study

• Marché mondial de l'emballage par matériau
• Taille du marché mondial de l'emballage métallique
• Marché mondial de l'emballage par matériau
• Prix moyen de la tonne d'acier en rouleaux laminé à chaud (HRC = Hot-rolled Coil Steel)
• Recyclage des conteneurs et emballages en acier, et des conteneurs et emballages en aluminium
• Connaissance des matériaux d'emballage alimentaire les plus recyclables selon les adultes aux États-Unis
• Montants des fusions et acquisitions dans le secteur de l'emballage métallique
• Volume des fusions et acquisitions dans l'industrie métallurgique
• Indice des prix à la production (SCIAN 332)
• Nombre d'employés dans le secteur de la fabrication de produits métalliques (SCIAN 332)
• Types d'emplois les plus courants (SCIAN 332)
• Prix des importations et des exportations (SCIAN 332)
• Balances commerciales des différents produits (codes SCIAN 332431, 333993 et 332439)
• Origine des importations (NAICS 332431 - Fabrication de boîtes métalliques)
• Destinations des exportations (SCIAN 332431 - Fabrication de boîtes métalliques)
• Origine des importations (SCIAN 332439 - Fabrication d'autres contenants métalliques)
• Destinations des exportations (SCIAN 332439 - Fabrication d'autres contenants en métal)
• Répartition de l'indice du secteur de l'emballage