Piston Can Systems North America Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Cost Outlook of Filled Piston Aerosol Cans in North America
  • North American Aerosol Piston Can Contract Fillers Supply Outlook
  • Mergers, Acquisitions, Capacity Expansions in 2017, 2018
  • Cost Driver Analysis

Table of contents

  1. Executive Summary
  1. Aerosol Can Market Outlook
  1. Production Process
  2. Value Chain Analysis
  3. North America Market
  4. Bag-on-Valve Can vs. Piston Can System
  5. Cost Outlook of Piston Aerosol Cans: North America
  6. Piston Aerosol Cans Supply Outlook: North America
  7. Aerosol Can Contract Filling Market Outlook
  1. Contract Filling Process
  2. Value Chain Analysis
  3. Cost Outlook of Filled Piston Aerosol Cans: North America
  4. Piston Aerosol Cans Contract Fillers Supply Outlook: North America
  5. Trends and Innovations
  1. Trends in Shave Gel Packaging
  2. Key Technological Developments in Aerosol Cans
  3. Key Technological Developments in Shave Gel Packaging
  4. Industry Best Practices
  1. Key Cost Indicators for Monitoring Aerosol Can Prices
  2. Industry Best Practices
  3. Aerosol Can Supply Outlook
  1. Mergers and Acquisitions
  2. Supply Outlook of Aerosol Can Manufacturers
  3. Supply Outlook of Aerosol Can Contract Fillers
  4. Supply Outlook of Shave Gel Contract Manufacturers
  5. Cost Driver Analysis
  1. Piston Can Filling
  2. BoV Can Filling
  3. Piston Can Body
  4. Aluminium Can Body (BoV Cans)
  5. Raw Material - Price Outlook
  1. Tin Plate Steel
  2. Price Analysis: Tin Plate - Global
  3. Raw Material Supply Overview of Tinplate: Regional

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Regional Market Outlook on Piston Can Systems 

  • Globally, North America is the second largest producer of aerosol cans. Tinplate cans dominate the market and account for ~75% of regional demand
  • Increasing demand for household products, such as insecticides and bug sprays, has led to the increased market share for household segment as compared to the personal care segment

Piston Aerosol Cans vs. BoV  in North America

Can manufacturers, have ave shifted to BoV technology in North America. Buyers (Example: Gillette) are also slowly migrating to BOV technology, due to flexibility to new valve technology and elimination of piston. Additionally, supplier such as Assured Packaging offers both contract manufacturing of after-shave gels and contract filling into BoV cans, thereby providing an opportunity for reduced complexity in supply chain. 

Cost Outlook of Piston Aerosol Cans in North America

  • Raw Material Cost: Tin plate sheet prices in US have remained fairly stable over the past two years. Over the next year, there is expected to be price increase in the US, due to rising CRC prices, in light of higher demand and import duties.
  • Overhead and Labor Cost – Most can manufacturing equipment are automated process. However, high labor cost in US significantly impacts production cost.
  • Fixed Cost – High Speed Aluminium impact extrusion aerosol lines or tin plate aerosol making lines, with an annual capacity of 60 million units would require a capital of $40-50 million in US.
  • Utility Cost – Utility costs in US are expected to fall in the next 6–7 months. This variation is a part of the seasonal electricity price trend.

North American Aerosol Piston Cans Supply Outlook

The consolidated supply base of tin plate suppliers and piston aerosol can suppliers in North America constraints buyer power. Migration to BoV technology, potentially in the future, according to recent trend might assist to gain buying power marginally.

Limited market for piston tin aerosol cans results in piston aerosol tin can manufacturers to mostly depend on domestic sources for their feedstock. Therefore, monitoring of domestic tin plate price fluctuations can help buyers control pricing.

Industry Best Practices

Procurement Practices Followed by Companies

  • Common Contract Formats : Multi year supply contracts ranging from 2 years to 3 years, covering multi million pieces per year for multiple countries are preferred by large corporations. While small, medium buyers with production runs, as small as 5000 pieces prefer single orders for existing products.
  • Sourcing of Packaging Material: Usually, the aerosol cans are purchased by the contract filler directly from the supplier. However, suppliers are willing to provide contract filling service even if the client provides the cans.
  • Regulations to be Adhered to: Contract fillers are expected to work according to chemical safety and aerosol laws in order to supply to Europe, North America, and Asia. Example, Aerosol Dispensers Directive (ADD), Toxic Substances Control Act, etc. Moreover, the US Environmental Protection Agency (EPA) is proposing  recycling regulations for handling hazardous waste of aerosol cans.
  • Indices Used For Price Model:  Can manufacturers work off of a 30-day price model, based on LME and MWP indicators. This is directly passed on to contract fillers whose prices mimic this trend.
  • Pricing Model: Contracts with can manufacturers have an annual price adjustment, based on steel content. This cost is passed on to buyers by contract fillers who engage with can manufacturers.
  • Migration to BoV Cans:  Many aerosol contract fillers in the US, such as Chicago Aerosol, Aerosol & Liquid Packaging, have also migrated away from Piston system. Personal Care demand for shave gel products is slowly moving to BOV technology to experience lower cost for decorated or undecorated cans. Moreover, it eliminates grommet material and 3rd party production cost.

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