Regional Market Outlook On Aluminium Foils
Industry Insights: Growing beverage end-use is expected to increase demand for aluminum foil laminates. Though economic conditions are expected to rise, consumer preference towards cost-effective and sustainable materials might introduce plastic laminates and films as an alternative to aluminum foil
Global Aluminum Foils Market Outlook
Aluminum foil sleeves are being replaced by plastic laminates that offer more printing and design features.Unsupported aluminum foil currently holds the largest share and is expected to grow by 5 percent until 2022, owing to rising demand from flexible packaging.
- The food & beverage industry is the largest end user of aluminum foil, occupying nearly 30 percent of the total market share during 2017
- Demand from the transportation industry in developed countries, like the US and Germany, followed by growing consumer spend on flexible packaging products from developing countries, like China, Brazil, and India, foster the growth for aluminum foils
- Growing applications of aluminum pouches increase product shelf life and hygiene, as it does not alter chemical properties, lose shape or melt during exposure to sunlight
LATAM Aluminum Foils Market Outlook
Recovering economies within COPEC and growing consumer consumption for beverages in this region, positions food and beverage buyers in a fairly strong position among regional suppliers.Although demand for beverages is expected to grow by 4–5% by 2022, economic condition of major beverage consuming countries are facing difficulties, which is expected to hinder growth of aluminum foils in this market.
- Brazil, Venezuela, Argentina, and Mexico are the major consumers of aluminum foil, with packaging occupying ~35–40 percent of the market share in 2017. This was mainly due to the growth of flexible packaging industry
- Growth in population has increased consumer spend on flexible packaging. Increase in number of working women has improved demand for aluminum foil in food packaging application, such as retort pouches
Mexico Aluminum Foils Market Outlook
With China dumping majority of aluminum foils in Mexico and other Latin American countries, results of NAFTA agreement will have a major impact on the supply and prices of aluminum foils internally.
- The confectionary segment is one of the key demand segments in Mexico, which is expected to drive aluminum foils growth for the next 2–3 years
- Growing steadily at 4.5–5% alcoholic beverages is expected to boost demand within the beverages segment
COPEC Aluminum Foils Market Outlook
Positive economic conditions promote a healthy spend on packaged goods. Supply base in Peru is almost inexistent for aluminum foils with only few global players having production locations.
- Non-alcoholic beverages represent nearly 3% of Chile’s GDP, growth in this segment is expected to increased demand for aluminum foil packaging
- Pharmaceutical sector’s growth attributes to a rise in demand for aluminum foil blister packs within this region
COPEC Aluminum Foils Growth Prospects
Positive trend amid, failing economies COPEC countries – Colombia, Peru, and Chile all maintained and are expected to maintain positive GDP growth among countries in economic distress. This provides a positive impact on the purchasing power among consumers.
Rise in spend on flexible packaging and beverages is expected to introduce plastic alternatives to aluminum foil. Though, this will not completely replace aluminum foils in beverages, it may reduce the market share within this region