Aerosol Cans
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on Aerosol Cans 

• The global aerosol cans production was 18.6 billion units in 2019. Demand for the same is expected to grow at a CAGR of 3–4 percent from 2019 to 2024
• The APAC and LATAM are expected to witness a high demand at a CAGR of 6–7percent and 4–5 percent, respectively, for aerosol cans, during 2019–2024. Growing middle-class disposable income and increased hygiene awareness are the major growth drivers
• The personal care segments in APAC and LATAM are expected to grow at a CAGR of 6–7percent and 3–4 percent, respectively, from 2019 to 2024, in turn, driving the demand for aerosol cans
• Increased penetration of aerosol format into new end-use segments and increasing demand in key end-use segments with large volumes, such as deodorants and other personal care products, would drive the overall market, especially for aluminum aerosolcans

Global Market Size: Aerosol Cans

Increasing demand in emerging economies, such as APAC and LATAM, would sustain the demand for aerosol cans. High level penetration of aerosol packaging format in new end-use segments, such as hair care, skin care, food, and other niche segments, would also spur innovation, in terms of material used, decoration, and dispensing systems

• The global aerosol cans market is expected grow at 3–4 percent CAGR by 2023, driven by the increasing demand for aerosol products in personal and homecare end-use segments, which are expected to grow at about 5–6 percent CAGR by 2023.
• APAC and LATAM are expected to drive the demand for aerosol cans at a CAGR of 7–8 percent and 3–4 percent, respectively, by 2023.
• Growing middle-class disposable income and increased levels of hygiene awareness are the major impetus for growth in these regions
• Consumer preference for increased sustainability, product esthetics, and the brand owners need to differentiate their products on the shelves would lead to development of advanced product designs, such as easy grip cans, compact can sizes, enhanced printing techniques, etc

Global Market Drivers and Constraints for Aerosol Cans

Emerging markets, like APAC and LATAM, are expected to drive the demand for aluminum aerosol cans by 2023, due to high disposable income and increased hygiene awarenes

Drivers

Growing demand from the emerging market

• Low per capita consumption, urbanization, hygiene awareness, growing disposable income, and changing lifestyles would foster the demand
• By 2023, the Chinese and Indian markets are to witness growth rates of 10–12 percent and 14– 16 percent, respectively, driving the overall demand

Growing deodorant market

• Deodorant is the largest end-use segment and accounts for 50 percent of the overall demand for aluminum aerosol cans
• It is expected to grow at a CAGR of 6 – 7 percent by 2023

Increased penetration of aerosols

• Improved ease of usage, accurate product dosage, and longer shelf life have increased the popularity of this packaging type
• Innovative spray technologies have found new uses for aerosol cans in food dispensing and other niche applications

Sustainability developments

• Introduction of compressed aluminum aerosol cans, which use 50 percent less propellants and 30 percent less raw materials
• Introduction of light-weight options, recyclability of cans, use of recycled content, etc

New designs and innovations

• The improvements in the aerosol can designs, such as development of reduced seam, from 5 mm to 1.5 mm, have helped in providing better aesthetics
• Aerosol systems offer companies a way to differentiate their products in a competitive market through enhanced and new methods of product delivery

Ease of manufacturing

• The relative ease of manufacturing and easy availability of raw materials have also contributed to the growth of supplier base and increased the reach for global aerosol can manufacturers
• The new innovations in manufacturing machinery, like the fully-integrated single piston, can significantly improve the production capacity to meet the demand

Constraints

Buyer power

• The FMCG and personal care product companies constitute nearly 75 percent of the end-use market, which gives them high bargaining power
• Small buyers and  aerosol cans suppliers face price disadvantage, since majority of cans manufactured are according to the specifications of high-volume buyers, who dominate nearly three-fourth of the aerosol market

Volatility of feedstock

• Propellants, aluminum, and tinplate are subject to a lot of price fluctuations in the global market scenario

Other growth constraints include

• High sustainability risk
• Developments in plastic aerosol cans
• Regulatory restrictions in the future for aerosol products

Global Aerosol Can Industry Trends

Emergence of Low-cost Countries in Production

• There is an increase in aerosol can manufacturing base in countries such as China, Mexico and Brazil due to the low production cost in these regions
•  Manufacturers are expanding to developing countries and setting up manufacturing bases, as it gives them access to developing markets and the cost of production is lower in these regions.

 New Designs

•  New designs and improved aesthetics, such as matte finishes, are emerging to attract consumers.
•  The ergonomics of packages is enhanced through shaping, as containers can be contoured in comfortable, easy-to-grip shapes, allowing convenient product dispensing.
•  Product shaping also helps the consumers to easily differentiate between genuine and counterfeit packages, as it is difficult to duplicate asymmetrically shaped containers.

New Aerosol Can Product Applications

• New aerosol can have applications in skin care, such as sun protection and self-tanning, and food products, such as vegetable oil and gelatin spray, will drive the demand in developed countries such as North America and Europe.

Global Supply - Demand Scenario for
Aerosol Cans Supply

• During 2018–19, in the mature markets of Europe and the US, there was an over production of aerosol cans that led to an over-supply situation. However, the increasing demand in USA and in Eastern Europe improved the situation.
• Suppliers are increasingly moving into the emerging markets, such as India and China, due to the improving economy. Significant amount of capacity additions is noticed in these regions.

Demand

• During 2018–19, in the mature markets of Europe and the US, there was a marginal increase in demand. The increasing demand for deodorant sprays in USA improved the volumes in this region, while the demand remained low in

Europe.

•  Demand in the emerging regions is increasing at a rapid rate. In regions, like India and China, the demand is expected to grow by more than 10 percent. However, since capacity expansion are already in place, supply is not affected.