The shortage of Chinese ingredients, raw materials, and semi-finished goods is the latest example of the global economy’s dependence on products made in China, from iPhones to auto parts to pharma. Much of the fallout may still be hidden and is likely to play out over months. Even before the coronavirus outbreak, business investment was already in poor health in the United States. It fell in the last three quarters of 2019. Some analysts now expect more companies could soon announce reductions in their capital spending.
Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Global Aluminum Foil market.
Trusted Business Insights presents an updated and Latest Study on Global Aluminum Foil Market 2019-2030. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Global Aluminum Foil market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Global Aluminum Foil Market
The global aluminum foil market size was valued at USD 23.1 billion in 2018 and is expected to advance at a CAGR of 5.3% from 2019 to 2025. Increasing demand from food and pharmaceutical packaging sectors is expected to significantly drive the market over the coming years.
The versatility of aluminum foil makes it an ideal material for use in different forms of packaging. Benefits of the product including malleability, strength, dead fold characteristics, and formability are likely to boost the market growth over the forecast period. In addition, the products ability to withstand extreme temperature is likely to fuel its demand as a packaging material.
Aluminum foil is highly versatile and can be used in numerous packaging applications including wrappers, household foil, pouches, blister packs, and lids. The absolute barrier effect provided by the product leads to longer shelf life and enhanced protection of the packaged contents. For instance, according to the European Aluminum Foil Association (Alufoil), about 1.5 gram of aluminum foil protects one liter of milk over months without cooling. It also aids in better preservation of the health and nutritional benefits of milk.
The product is used in varied industrial applications due to its reflective ability, light weight, and robustness. Aluminum foil plays a vital role in the effective performance of many components in construction and transportation sectors. The aforementioned factors are likely to boost the market growth.
The predominant channel of distribution for packaging and industrial aluminum foil is the direct distribution channel. The product is sold directly to end users, who further process the foil to manufacture products such as pie pans, household foils, containers, heat exchanger fins, and thermal insulation wraps.
Aluminum is recyclable and thus, represents a lucrative opportunity for manufacturers as increasing recovery and collection rates for the product mean less production cost and improved profitability. According to the European Aluminum Foil Association, the estimated average recycling rate of aluminum packaging in the European market is 65%.
Packaging industry dominated the market with a revenue share of 65.4% in 2018. The product is extensively used in packaging because of its ability to protect items packaged inside against oxygen, light, bacteria, and moisture. It is primarily used in food & beverage, pharmaceutical, tobacco, and cosmetics packaging applications.
Food & beverage packaging held the largest revenue share in packaging segment in 2018. The product has substantial application scope in food & beverage industry ranging from bakery, confectionery, food containers, coffee, dairy, and drinks to household foils for domestic uses. Increasing consumer disposable income coupled with rapid expansion of online food delivery channels is expected to drive the product demand in food & beverage packaging.
In terms of volume, the demand for the product in pharmaceutical packaging is expected to progress at the fastest CAGR of 6.0% over the forecast period. Aluminum foil is used to manufacture blister packs and strip packs owing to its superior mechanical properties such as high toughness and optimum barrier performance. The product is also used to produce sachets and collapsible tubes in pharmaceutical packaging industry. The swift growth of pharmaceutical packaging sector, especially in emerging economies of Asia Pacific, provides a lucrative opportunity for the market growth over the forecast period.
The industrial end users of aluminum foil include transportation, building & construction, and electrical sectors. The product is primarily used for thermal insulation and as a vapor barrier in building and construction sector. It is used as a top layer for insulating pipes & ducts of the buildings. The product is also used to manufacture heat exchanger units for buildings and automobiles. In electrical industry, the product is used in communication cables and to manufacture coils for transformers and capacitors in radios & televisions.
Application Insights of Global Aluminum Foil Market
Wrapper application held the highest volume share of 26.5% in the market in 2018. The product is extensively used to manufacture household foil wrappers and packaging wrappers. For instance, the product is used to wrap chocolate bars and beverage bottleneck to give enhance the product appeal. Furthermore, aluminum foil layer is wrapped on packs and cartons of food & beverages to create a barrier and prolong shelf life.
Besides wrappers, container is another significant product application in the market. Containers are used to prepare, store, freeze, transport, cook, and serve a variety of food products. Aluminum foil is used as a cooking utensil for baking, grilling, and steaming food. The trend of online food ordering among consumers is expected to drive the segment growth over the forecast period.
Aluminum foil lids are predominantly used in packaging of milk, yogurt, ice cream, cheese, juice, water, beverage, coffee, and cosmetics. Lid labels add extra functional dimension to a beverage by acting as a hygienic shield and resealable closure. It is often used as an eye-catching tool for promotions, relaunches, and special events associated with beverages.
Blister pack segment in the market is poised to witness the fastest CAGR of 6.4%, in terms of both revenue and volume, over the forecast period. Blister packaging is used to pack tablets, pills, and capsules in pharmaceutical industry. The growth of the global healthcare sector is predicted to propel the demand for blister packs, thereby, resulting in increased utilization of aluminum foil.
Regional Insights of Global Aluminum Foil Market
North America aluminum foil market accounted for a revenue share of 14.5% in 2018. The U.S., which dominated the North American market, is a relatively mature market for household wrappers and container foils. The market growth in the country is primarily driven by increasing demand for heat exchangers and refrigeration appliances.
Aluminum foil production in the North American market was heavily influenced by low priced Chinese imports until 2017. The import share from China grew from 22.7% of the total imports in 2007 to 56.0% in 2017. This negatively affected the profitability of domestic manufacturers. As a result, in 2017, the Trade Enforcement Working Group of the Aluminum Association filed an antidumping & countervailing duty petition against imports from China.
In response to the complaints, the U.S. Department of Commerce applied significant tariffs on aluminum foil imported from China. The support from the government has helped domestic manufacturers expand their production capabilities in the country. In 2017, GrAnges, a rolled aluminum manufacturer, invested USD 110 million to expand its Huntingdon, TN plant to manufacture aluminum foil.
Europe was the second-largest market with a revenue share of 25.5% in 2018. The product demand in Europe is sluggish compared to other regions. The market is primarily driven by pharmaceutical packaging, which is anticipated to grow at a moderate pace over the forecast period. The growth of pharmaceutical packaging in the region is driven by the rising prevalence of chronic diseases and improving exports of medication to emerging economies in Asia Pacific.
Asia Pacific dominated the market and is predicted to witness the fastest CAGR of 6.7%, in terms of revenue, from 2019 to 2025. China is the largest consumer as well as producer of aluminum foil in the world. It is the biggest exporter of the product globally. India is yet another attractive market in Asia Pacific and is expected to witness a CAGR of 8.5%, in terms of volume, from 2019 to 2025.
Aluminum Foil Market Share Insights
The global market is characterized by the presence of numerous large and small players. Key market participants include Amcor Plc, Zhejiang Junma Aluminium Industry, Novelis, and Hindalco. Supportive government initiatives to promote manufacturing sector in the country are expected to augment the demand for aluminum foil in packaging and industrial applications, thereby creating growth opportunities for market players.
Capacity expansion is the key strategy adopted by the manufacturers. For instance, in November 2018, Novelis announced an investment of USD 175 million to expand its aluminum production and recycling capabilities in Brazil. The project is expected to add 100 kilotons of rolling production to meet the rising demand from the region.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Aluminum Foil Market Research Report
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global aluminum foil market report on the basis of end-use, application, and region:
End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2019 – 2030)
Food & Beverage
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 – 2030)
Quick Read Table of Contents of this Report @ Global Aluminum Foil Market Research Report 2020 | Industry Report, Industry Analysis, Key Players, Trends, Revenue, Regional Segmented, Outlook Until 2030
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