Aluminum Foils
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on Aluminum Foils

• The global production of aluminum foils was at 5.5 MMT during 2019, and it is expected to grow moderately at 5–5.5 percent (CAGR) until 2024 and reach 7 MMT
• Increase in demand from the automobile industry and rising consumption of flexible packaging (especially pouches) have bolstered the growth for aluminum foils

Aluminum Foil Market - Supply Chain Analysis

• Production optimization over the years has led to commercially available foil-rolling plants that can produce widths of up to 2150 mm and as thin as 0.006 mm at rolling speeds of 2500 meters/minute.
• A natural technique to save energy would be collection and cleaning of CO2 from the electrolysis process for reuse.
• As per the experts studying the aluminium foil market, the production of aluminum will reach 6.4MMT by 2022.
• In 2017, Asia Pacific (APAC) was the major producer of aluminum foils with a market share of 64%. Europe and Middle East and Africa (EMEA) produced 20%, North America produced 13%, and Latin America produced 3%.
• Aluminum foil market in APAC will grow the fastest at a rate of 7.5% to 8% until 2022.

Global Aluminium Foil Market Size

• Preference for convenient and lightweight packaging has driven vendors to come up with innovative aluminum foil packaging solutions catering to the organized retail and packaged foods market.
• Aluminium foil with paper shows promise for growth in the packaging of dairy products in upcoming years.
• The food and beverage industry is the largest end-user of aluminium foil, occupying nearly 30% of the total market share during 2018.
• Demand from the transportation industry in developed countries such as the US and Germany followed by growing consumer spending on flexible packaging products from developing countries such as China, Brazil, and India foster the usage of aluminum foils.
• Aluminum pouches are seeing huge consumption as they increase product shelf life and hygiene, and do not alter chemical properties, shape or melt during exposure to sunlight.

Global Aluminum Foil Demand by Type

• Rapid industrialization coupled with heavy air conditioner usage in India, Egypt, Iran, and UAE boosts the need for industrial aluminum foils.
• Blister foil finds immense use in the pharmaceutical industry, medical industry boom in emerging economies foster demand for aluminum foils
• Rolled Aluminum Foil: Aluminum foil is primarily consumed by packaging, transportation, and construction sectors.
• The packaging industry took the largest share, around 41%, during 2019, followed by the transportation industry.
• The global rolled foil consumption might increase by 5% CAGR from 2019 to 2024 with the transportation industry being the largest market.
• The aluminum foil market research shows that the packaging consumption can reach over $27 Mn by 2022, owing to the rising adoption of flexible packaging and increasing demand for packaged foods.
• Pharmaceuticals can drive the aluminium foil market growth further as pharma packaging such as strip-pack in tablets is boosting the demand for aluminum foils, also called pharma foils.
• Backed Aluminum Foil: These include laminated, embossed, backed with paper, plastics and adhesives. Foil tapes constitute a major part in backed aluminum foils These are driven by their growing use in electrical and construction purposes offering superior adhesion and extended life.
• Developed regions are expected to see moderate demand for backed aluminum foil in industrial purposes, especially from the electricity sector that uses such foils for insulation purposes.
• Emerging regions show promise with growing infrastructure in China and India.
• The types of foils and films can be categorized into blisters foils, lidding foils, and printed aluminum foils.
• Blister packaging is going to be in high demand as it can be used for flexible packaging of smaller items and products, such as medicines and batteries.
• In the past, rolled foils had a demand of 39%, backed foils had demand of 24%, and other foils had 42% demand. This trend is likely to continue.
• Global demand for converter foils will increase to 60% while the technical foils will witness a demand of up to 12%.
• The global demand for household foils and container foils will increase to 17% and 15%. respectively.
• As flexible packaging will grow, so will the demand for household foils.

Industry Drivers

Lightweight 

• Aluminum foils can be extruded to 0.006 mm without losing their mechanical properties.

• This feature primarily benefits the automobile industry.

Recyclability & Energy Efficiency 

• Compared to paper and plastics, aluminum is easy to recycle and the most recycled form is beverage containers.

• Recycling aluminum requires less than 92% less energy to make than new aluminum.

Durability 

• Although specialty films are being manufactured for pharma and food products, its acceptance compared to aluminum foil is limited 

• Aluminum foils exhibit superior barrier properties, resistance to heat and oxygen, insulation, moisture barrier properties, and aroma retention

Regulatory Pressure

• Policymakers across the globe are pressurizing various industries to minimize their packaging consumption. 
• They have imposed several sustainability norms over the last couple of years, which is likely to have a huge impact on the adoption of recyclable aluminum foil for packaging requirements in various sectors. 
• Aluminum foil is the gold standard for packaging, especially in the pharmaceutical industry given its excellent barrier properties among other advantages. 
• Leaner manufacturing models across the pharmaceutical packaging domain will deliver eco-friendly benefits for aluminum foil suppliers.

Industry Constraints

Technology 

• A lack of technological intervention still allows the use of the Hall–Héroult process to smelt aluminum 

• This is a highly energy-intensive process, although, recent past has seen energy forms, such as fossil fuel and hydro/nuclear power 

Carbon Emission 

• 24.45 tons of CO2 emissions are generated per ton of aluminum foil produced 

• Aluminum foils use about 3.8 grams of per square foot whereas cling wrap uses only 1.7 grams 

COVID-19 Impact on Aluminum Foil Market

The COVID-19 pandemic is having a strong impact on various facets of the aluminum foil industry. Governments in hard-hit countries have imposed nationwide lockdowns and travel restrictions to avoid further virus infection, creating several barriers across the supply chain in the aluminum foil market. As such, market players are chalking out innovative strategies to address this uncertain period.

While the demand for aluminum foils will remain sluggish in the food and beverages industry, the pharmaceutical sector will offer lucrative growth opportunities. The exponential rise in the demand for drugs and medicines continues to push the consumption of aluminum foil packaging amidst the public-health crisis.

Innovations in Aluminum Foil Packaging

PVC Alternative Line

• Tekniflex PXA, high-barrier Aclar® (PCTFE) laminated line. EVOH can also be laminated to the structure for additional oxygen barrier. 

• Tekni-Films also produces high and ultra-high thermoformable barrier materials, including the Flexapharm SBC series and PVC/Aclar laminates. 

• These structures provide an alternative to cold form foil enabling pharmaceutical companies to use a smaller blister card to contain the same number of tablets or capsules—or increase the count on a same-sized card. 

• The end result is material cost savings all the way through the packaging process, including cartons and cases, as well as improved production efficiencies.

PET-based cold-form blister

• In the conventional cold form laminate, there are three layers –nylon, aluminum and PVC. 

• Uflex has developed revolutionary Alu-Alu packaging where special polyester film has replaced the conventional nylon and PVC while retaining aluminum making it an indigenous product since both PVC and BON have to be imported from other countries. 

• For this unique development, Uflex has also been granted a United States Patent recently. Alu-Alu packaging provides sustainability and cost optimization giving it an edge over conventional Alu-Alu packaging

Fast Tear Strip Foil

• Uflex has developed 20micron pin-hole free soft tempered foil. It contributes to providing a higher yield gain of 36% leading to cost savings for pharma companies. 

• Conventionally, pharma companies have been using 30 and 40 micron soft tempered Strip Foil pack laminate. 

• Fast Tear Strip Foil maintains the bursting pressure of the pocket with reduced foil thickness. 

• This foil conforms to all regulatory requirements of pharmaceutical products and also meets toxicology requirements. 

• Fast Tear Strip Foil proves to be a game-changer for the pharma industry globally and sees a potential aluminum foil market growth of 5000 tonnes annually in the aluminum foil market in India.

CRSF Foil

• The child-resistant & senior Friendly (CRSF) foils, developed by Uflex, are available in two types push-through and peel-push. 

• As the name suggests, it requires some amount of pressure for a child to open it. However an adult or senior can open it easily. 

• This protects against unintentional damage to the foil which is common with conventional blister foils which get easily tampered during handling affecting the formulation.

Why You Should Buy This Report

This report on the aluminum foil packaging market offers an accurate and comprehensive analysis of market growth drivers, factors (positive and negative) impacting the market growth, current industry trends, market structure, and market projections for the predefined time frame.

This research study on the aluminum foil industry includes an assessment of ongoing tech developments, Porter’s five forces analysis, and extensive profiles of key market players. Further, it offers a review of macro and micro factors critical to the existing industry players and new entrants coupled with a detailed value chain evaluation.