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GCC Metal cans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 95 Pages
  • June 2022
  • Region: Middle East
  • Mordor Intelligence
  • ID: 5617294
UP TO OFF until Dec 31st 2023
The GCC metal cans market is expected to register a CAGR of 2.83% over the forecast period (2022 - 2027). The product is gaining prominence due to its distinct features, such as resistance to transportation, hermetically sealed cover, irregular handling, and easy recyclability.

Key Highlights

  • The high recyclability of metal cans is one of the significant drivers of the market. Making products from recycled metals uses less energy, reduces carbon emissions, and uses less water compared with using raw materials.
  • Owing to the increasing consumption of both alcoholic and non-alcoholic beverages, such as beer and carbonated drinks, in GCC, there is significant demand for metal cans in the region. According to a new report from the Dubai Chamber of Commerce, the UAE's food and beverage trade grew steadily to more than USD 20 billion in the first nine months of 2021.
  • Moreover, consumer trends, such as a preference for small-size and multi-pack packaging formats, are also supporting the volume growth of the metal cans market in the region. For instance, in March 2022, Rexam’s chief executive said that growth prospects for the beverage can in the Middle East were attractive and they look forward to working together with their partners in UAC to lead further expansion in the region.
  • The rise in consumer awareness concerning the application of non-carcinogenic materials in packaging and increased demand for lightweight packing is generating high growth prospects for the metal cans market. However, due to the replacement possibility of polymer-based packaging materials, including polyethylene and polyethylene terephthalate (PET), metal cans are witnessing a challenge in their usage.
  • In response to the COVID-19 pandemic's impact on demand, GCC aluminum production have swiftly increased by 179 thousand metric tonnes in 2020, while produced only 5654 thousand metric tonnes of aluminum in 2019, as per International Aluminum Institute. Also, the non-ferrous metals industry is a key supplier of essential value chains, including food packaging. COVID-19 is causing significant and growing economic impacts on the GCC non-ferrous metals sector, caused by major demand reduction in key-value chains, supply disruptions, and transport difficulties.

Key Market Trends

Aluminium Cans Expected to Hold a Significant Share

  • Aluminum Cans are expected to hold a significant share, due to the introduction of new products and packaging solutions, which is giving rise to more variants of products that are accessible to the consumers, thus, leading to growth in sales of canned food products.
  • A major trend seen in the market is a significant shift in consumer behavior, particularly among the millennials and younger generations in gulf countries. As a result, the consumers are more willing to try new products, especially the ones with natural and organic ingredients, which is expected to provide significant opportunities for aerosol cans.
  • However, increasing health awareness among the population is leading to higher purchase rates of fresh over frozen or canned products, as the former is perceived to be healthier. This is expected to constrain the demand for canned food products.
  • Moreover, the standardization of the ‘Made in UAE’ initiative, which introduces the local manufacturers to the global market, is helping the country to reduce its reliance on imports and to strengthen its export potential. The positive growth of this kind in the manufacturing sector has encouraged considerable investments in the packaging industry. Most of the investments in the packaging sector are made toward adjusting their packaging practices to the country’s current economic situation and evolving standards.

United Arab Emirates Expected to Dominate

  • The United Arab Emirates is expected to dominate the Metal Cans Market in the Middle East and Africa region, owing to the increasing demand for organic foods in the country. As per Global Organic Trade Guide, Organic products in the United Arab Emirates registered a market value of USD 32.6 million, representing about 0.05% of global demand, with a per capita expenditure of USD 3.49 in 2021.
  • As the market for organic beverages evolves, and consumers become increasingly health-conscious, demand for organic products is expected to continue to increase, leading to a value of USD 38.9 million by 2025.
  • Additionally, in recognition of its future potential in contributing to Dubai’s economic growth and sustainability, it was selected as one of the six focus sectors of the Dubai Industrial Strategy 2030.
  • Furthermore, the growing ex-pat population, which comprises of around 48% of the total population in the United Arab Emirates, is further expected to help drive the market for canned food products, due to the ease of convenience.
  • The country also has a considerable demand for packaging solutions from the personal care and cosmetics industries. A recent report released by the Dubai Chamber of Commerce and Industry has projected the UAE’s retail sales to reach USD 70.5 billion (Dh259 billion) by 2025 - an annual growth of 6.6 per cent.
  • With the country’s population estimated to increase to 10 million by 2025 and tourism numbers poised to reach 20 million, The United Arab Emirates generated around 24.62 billion US Dollar in the tourism sector alone. This corresponds to 6.9 percent of its the gross domestic product and approximately 35 percent of all international tourism receipts in Western Asia. The market outlook for goods packed in metal cans is expected to remain positive.

Competitive Landscape

The competitive landscape of the GCC Metal Cans Market is moderately fragmented owing to the presence of several market players in the region, and the growing adoption of metal cans for packaging across the industries in the region. The market players are providing innovative solutions in the region to gain maximum market traction.
  • July 2021 - Ball Corporation, one of the prominent players in the GCC metal can market, partnered with EN+ Group's Metals segment RUSAL to incorporate "ultra-low carbon" aluminum in the slugs and impact extruded containers manufactured by Ball. The aluminum produced by EN+'s Metals segment uses inert anode technology and renewable energy-based smelting, which reportedly generates 85% less CO2e compared to the global average for aluminum production.
  • February 2021 - The acquisition of a 51 percent stake in Arab Can Manufacturing Limited by Rexam has been completed (UAC). Rexam UAC will be the new name of the company. UAC is based in Dammam, Saudi Arabia, and produces beverage cans and can ends. The plant can produce 1.8 billion cans per year in both standard and specialty sizes.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview (Current Market Scenario, Sustainability Trends)
4.2 Industry Supply Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Market Drivers
5.1.1 Improving Income Level and Development of Retail Systems is increasing the Consumption of Packaged Food & Beverages
5.2 Market Challenges
5.2.1 Growing Demand for alternatives such as flexible plastics in the Food Industry
5.3 Market Opportunities
8.1 By Material
8.1.1 Aluminium Cans
8.1.2 Steel/Tin Cans
8.2 By Application
8.2.1 Beverage Cans Alcoholic Non-Alcoholic
8.2.2 Food Cans Vegetables & Fruits Pet Food Soups and Other Food
8.2.3 Aerosol Cans (Cosmetic, Household & Pharmaceutical)
8.2.4 Other Consumer cans
8.3 By Country
8.3.1 United Arab Emirates (UAE)
8.3.2 Saudi Arabia
8.3.3 Rest of GCC
9.1 Company Profiles
9.1.1 ARYUM Metal Alüminyum Tüp
9.1.2 Ball Corporation
9.1.3 Crown Holdings
9.1.4 SAPIN SA
9.1.5 Nampak Ltd
9.1.6 Can-Pack Middle East
9.1.7 Gulf Cans Industries
9.1.8 Saudi Can Co. Ltd
9.1.9 Mahmood Saeed Can and End Industry Company Limited (MSCANCO)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ARYUM Metal Alüminyum Tüp
  • Ball Corporation
  • Crown Holdings
  • Nampak Ltd
  • Can-Pack Middle East
  • Gulf Cans Industries
  • Saudi Can Co. Ltd
  • Mahmood Saeed Can and End Industry Company Limited (MSCANCO)