Global Canned Food Packaging Market Is Predicted To Grow At A CAGR Of 3.37% During The Forecast Period

Pune, India, March 2023, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Canned Food Packaging market.

Canned Food Packaging Market Highlights

Canned Food Packaging Market Size was valued at USD 59,030.35 million in 2021. The canned food packaging market industry is projected to grow from USD 59,030.35 million in 2021 to USD 80,599.34 million by 2030, exhibiting a compound annual growth rate (CAGR) of 3.47% during the forecast period (2022 - 2030). 

Canning is a technique of storing and preserving food products by inactivating degrading enzymes through heat treatment and sealing the products in an airtight container. It is a cheap method of preserving food products for 1-5 years depending on the products. Canned foods are free of any microbial contamination and can also be used for storing ready-made meals which are leading to their wide popularity. Cans materials like metals and glass are completely recyclable which is the biggest advantage of using cans for food packaging. Moreover, the technological advancements in the canning technique are making it suitable for storing a wide range of food products including vegetables, fruits, and meat products. Raw materials, such as aluminum, tin-coated steel, and electrolytic chromium-coated steel, are used to make cans such as 3-piece welded cans, 2-piece drawn and redrawn cans, and 2-piece drawn and ironed cans. Coatings are applied on premade cans as tin is more quickly oxidized than food and used without internal coatings for light-colored acidic juices, such as pineapple, pears, and peaches, preventing darkening and flavor changes induced by oxidation of fruits. Metal cans, such as aluminum or tin-plated steel, are widely used because they recycle quickly and contain more recycled materials than other package types. Among different types of beverage cans, aluminum cans are mostly used as they are lightweight, stackable, sturdy, and can package and transport more beverages with less material.

Market Synopsis

The majority of the market is dominated by fish and seafood. Canning fish and seafood is an excellent way to preserve these perishable foods. It is a low-cost method of preserving sea products that can last up to 5 years. However, with the advancement of technology, canning of fruits and vegetables has increased significantly. The demand for canned fish and seafood has steadily increased as a result of consumer awareness of the nutritional benefits of fish and seafood, as well as the convenience of consumption and the long shelf life it possesses. Canned fish products (such as canned salmon) are in high demand among the fitness-conscious demographic, particularly athletes. Canned seafood, such as salmon, is high in iron, high-quality protein, omega-3 fatty acids, and vitamin B-12, making it popular among the aforementioned demographic. The prospect of greater growth in seafood e-commerce is also driving its expansion. Online shopping provides added convenience and improves the purchasing experience significantly. Thus, by type of food, canned fish and seafood are expected to hold a major market share for canned food packaging market in the sales indicator period 2022 - 2030

COVID-19 Impact on Canned Food Packaging Market

Global Canned Food Packaging Market was facing a pre-lockdown decline in business due to disruption of supply chains. The pandemic stopped cash flows, while migration of workers caused much distress. The COVID pandemic has mainly affected micro, small and medium enterprises (MSMEs), which are facing closure owing to problems like a lack of working capital and labor. During this pandemic, several countries including China, India, Germany, Italy, Brazil, and Canada declared complete lockdown. This further led to the shutdown of production facilities, and raw material transportation. This epidemic has severely affected the supply chain of numerous manufacturing units. Since, both raw material supply and finished goods distribution is majorly affected, causing a massive drop in revenue. China is a major consumer of materials and an epicenter of coronavirus, thus, inhibiting the development of the market. Restrictions over export and import of products in general, and industrial goods acts as a factor for the decline of the market. Major food manufacturers have either sharply reduced their operations or shuttered their facilities. The halt in activities of many food processing units during the period led to a decline in the demand for food packaging cans. The poor performance of the tourism and hospitality sector also impacted the market by decreasing the demand for canned products. Moreover, restrictions on travel and movement of goods to curb the virus spread ultimately caused disruptions in the supply chain. However, there was some respite to the canned food packaging industry through increasing sales of readymade food products in online grocery and shopping sites The Covid 19 pandemic had its impact on the global economic environment, causing significant disruption in economic activities and the Canned Food Packaging Industry where the Group is operating had been adversely impacted in the first half of FY 2020-21 due to the pandemic. To optimize operating efficiency, Company has temporarily shut down its manufacturing operations. The companies closely monitor the recent developments and effect of present pandemic over the business. The companies believes that this pandemic is not likely to have material impact on the carrying value of its assets and hence no provision for any Impairment is required. As the situation unfolds in the future, the eventual impact may be different from the estimates made as on the date of approval of these Financial Statements. India began a three-week lockdown on 25 March, Malaysia has extended its lockdown to 14 April and several other countries in Asia, including Japan, Indonesia, Singapore, Thailand and Vietnam, are considering tightening their respective restrictions. Lockdown led to food processing business operations to be shut down as well severely impacting the demand for canned food packaging products.

Competitive Landscape

The high competition among the players have encouraged the players to produce quality products in the market. In order to build new and quality products, numerous companies benefit from mergers, acquisitions, and product development. To preserve their positions and broaden their geographic reach, the players in the worldwide canned food packaging market are using a variety of strategies, including expansion, mergers and acquisitions, alliances, joint ventures, and expansion. To gain the largest possible market share, new product launch was the growth strategy that was most frequently used by market participants.

There are numerous international, national, and regional players in the worldwide canned food packaging industry. There is a lot of competition in this sector, and everyone is trying to increase their portion of customers' wallets. When comparing prices and quality, as well as product availability across regions, different suppliers will use different metrics. In order to be competitive, suppliers must offer reasonably priced, high-quality canned food packaging. Market and economic conditions, government laws, and technological progress all affect how quickly and how large market actors can expand. As a result, businesses in this sector need to concentrate on increasing output and refining their offerings to keep up with consumer demand. These companies are investing heavily in creating new products. Although worldwide companies account for the vast majority of sales, smaller regional and local firms are also present.

At one side, the demand for Canned Food Packaging and its raw material has declined, the production has also declined with more than 5%, many production sites are running at 50% capacity and many end-user industries are struggling to receive their raw material for Canned Food Packaging. The COVID-19 pandemic has had a swift and severe negative impact on the globally integrated industries such as Processed Foods, Beverages, Bakery & Confectionery, Meat & Poultry industry. Owing to the pandemic application industry have been shut down across all economies, potentially reducing the production and its usage. The outbreak of covid 19 is directly impacting the global markets. The meat, milk, bread and other products market are affected by this pandemic. In this period, there are supply disruptions in the food industry. There are lots of concerns about food safety in this period. There is low production, less supply and declining demand in the market. All these are the factor that causes losses in the market. The uncertainty surrounding the situation resulted in consumers engaging in impulse buying and stockpiling groceries and essential products, including food products with longer shelf lives. The increasing demand for food packaging can also be attributed to several groups and organizations offering aid to people who did not have access to essential services or had lost their source of income and could not afford food. Canned food packaging ensures the protection of food products and improves the shelf-life of the products thereby, attracting more customers. The food packaging market is expected to grow significantly over the forecast period due to the advent of numerous production facilities and their need to catch up with the latest trends in the market. Also, rapid changes in the people’s lifestyles and food preferences of consumers, along with the growth in population, particularly in developing countries, is expected to drive the growth of the market over the forecast period. The increasing preference of people for processed food due to shifts in population dynamics from rural to urban areas is also driving the growth of the canned food packaging market.

Segmentation

By Can Size

Among the various capacities, the 500 gm - 1000 gm segment is estimated to be prominent in the global food cans market, and is expected to account for 48.06% of the market share by the end of 2021. The airtight, sealed metal containers increase the shelf life and help retain the nutrition of food products. The taste and quality of food products are preserved against various conditions by the metal containers, right from manufacturing to supply to distribution outlets. Short cooking time, easy preparation, and long shelf life are factors increasing the demand for 500-100 gm canned food products packaging. Globally, the growing working population is increasing the demand for convenience foods such as canned food that can be prepared easily. Further, the demand for convenience, such as for single-serving containers of canned food, has resulted in the availability of a wide array of products.

By Material Type

• Aluminium Packaging: Aluminum cans offer long-term food quality preservation benefits. Aluminum cans deliver nearly 100% protection against light, oxygen, moisture, and other contaminants. These cans do not rust and are resistant to corrosion, providing one of the most extended shelf lives considering any packaging. Additionally, these cans provide many benefits, such as rigidity, stability, and high barrier properties. They are used to store goods with longer shelf life and can be transported for more considerable distances. Aluminum has significant properties, such as being softer and lightweight, due to which the manufacturers can save costs associated with logistics. Aluminum cans are gaining prominence due to various distinct features, such as stackable, lightweight, strong, hermetically sealed cover, resistance to transportation, rough handling, and easy recyclability, allowing brands to package and transport more beverages using less material.


• Steel Packaging: Steel cans are the most recycled food package in the world, giving steel an important role in providing sustainable packaging for foods that carry important nutrients essential to a healthy diet. According to a consumer survey commissioned by the Canned Food Alliance (CFA), Americans enjoy canned foods because of their convenience, value and ease of preparation. Over the past decade, China’s steel production has increased rapidly on the back of expansion and manufacturing activities of different voluminous industries in the country. As per the key insights published by Worldsteel Association, China is the leading country for producing steel. China’s crude steel production increased by 5.2% in 2020 in comparison with 2019, resulting in 1,053 Mn USD Million output. This growth is predicted due to speedy recovery in construction and manufacturing industries, after uplift of lockdown during COVID-19 pandemic phase.


• Tinplate Packaging: Tinplate is regarded as one of the most versatile and sustainable forms of packaging. Tinplate packaging is a packaging product produced from tinplate steel. This gives tinplate packaging anti-corrosion properties, soldering capabilities, and is recyclable. Tinplate packaging is widely used in the food & beverage industry to store food products and beverages. Also, tinplate packaging is also used to store paints, oil, chemicals, waxes, and grease. Tinplate packaging comes in different types such as tinplate cans and tinplate boxes. The main driver of tinplate packaging is its recyclable and reusable property that promotes eco-friendly packaging. Increasing consumption of food & beverage is leading to rise in packaging of it, which is expected to positively affect the market for tinplate packaging.


• Glass: Glass packaging includes all packaging formats made from glass such as jars, bottles, containers, and others. Recyclability and neutral reacting ability make it a popular choice in packaging applications. It is widely used in the packaging of pharmaceuticals, cosmetics, food products, and alcoholic beverages. It prevents the contamination of products while increasing shelf life. One of the major reasons behind this growth is supportive government policies and legislation. Furthermore, European governments have developed new policies and initiatives to boost the glass recycling industry. Many countries in Europe have increased landfill tax rates to encourage glass recycling practices. Rising consumer demand for safe and healthier packaging helps glass packaging grow in different categories. Also, innovative technologies for embossing, shaping, and adding artistic finishes to glass make glass packaging more desirable among end-users. Furthermore, factors such as the increasing demand for eco-friendly products and the rising demand from the food and beverage market are stimulating the growth of the market.


• Plastic: Plastics can be molded into various shapes & sizes and are lightweight. Moreover, the thickness of plastics can be controlled, increasing their scope of applications. Research & developmental activities in plastics coupled with technological advancements have resulted in the production of plastics with qualities similar to glass. Thus, the popularity of plastics as packaging materials has grown over the past few years. However, environmental benefits of glass compared to plastics will benefit industry expansion in the future. Plastic offers both flexible & rigid, transparent, and lightweight forms of packaging, on account of which the key industries such as personal care, food and beverage, and industrial primarily prefer it over its counterparts such as metal or glass.

By Application

• Food: Food cans are tamper-proof, anti-leakage cans that help in maintaining the product’s nutritional value. Food cans are used for storing dry food products such as pet food, beans, fruits, frozen food, and vegetables. Food cans serve as great packaging tools during transportation. Food cans prevent the growth of bad microorganisms that hamper food quality. Therefore, this factor can provide a steady boost to the food cans market. Furthermore, the food cans market is surrounded by frequent technological innovations related to better food preservation. This may also help in driving the food cans market towards growth. The canned seafood segment holds the largest market share in the canned food sector owing to various health benefits associated with it. Seafood is obtained from various water inhabitants such as fishe and sea foods, crabs, clams, and others which are highly nutritious and an abundant source of protein. Various food chains and restaurants are utilizing the canned seafood to introduce an authentic taste.


• Beverage: Beverage cans market revenue growth is primarily driven by factors such as rising demand for lightweight can materials and airtight beverage cans that keep oxygen out and carbonation in. In addition, rising demand for dairy beverages served in cans, such as cold coffee, fruit milkshakes, chocolate milkshakes, and others, is increasing adoption of beverage cans, which is another factor expected to drive revenue growth of the beverage cans market. The alcoholic beverages segment accounted for the maximum revenue share which dominated the beverage segment in 2021. The high share is attributed to the increasing demand for alcoholic beverages among millennials, increasing disposable income, and a rise in consumer demand for premium/high-quality alcoholic products. Moreover, the easy access to a variety of alcoholic beverages in supermarkets is expected to drive consumption, thereby benefitting the segment growth. Furthermore, high visibility and attractive assortment of alcoholic beverages, efforts by manufacturers for strengthening distribution channel network along with new product launches are expected to drive the segment over the forecast period.

By Region