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Vietnam Metal Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 97 Pages
  • April 2023
  • Region: Vietnam
  • Mordor Intelligence
  • ID: 5764861
The Vietnamese metal packaging market is expected to register a CAGR of 3.81% during the forecast period. The demand for convenience food has increased due to the nation's increasing pace of urbanization. In Vietnam, eating out and convenience meals are replacing food preparation, buying, and home cooking. The two main drivers of this trend's expansion are the rapidly expanding middle class and the young population.

Key Highlights

  • Packaging made primarily of metals, such as steel and aluminum, is referred to as metal packaging. A few significant benefits of adopting metal packaging are its resistance to impact, capacity to withstand severe temperatures, ease of long-distance shipping, and others. Due to the high demand for canned food, particularly in busy metropolitan areas, the usage of the product for canning food is rising in popularity, which helps in the market's growth.
  • The product's durability and ability to withstand high pressure make it a popular choice in the fragrance industry too. Additionally, the growing demand for luxury goods packaged in metal, such as cookies, coffee, tea, and other goods, leads to a rise in the usage of metal-based packaging.
  • The growth in demand from the food and beverages business has contributed to the overall expansion of the packaging industry. Smaller families and a lack of time contribute to the need for canned food and drinks, propelling the metal packaging industry. The introduction of metal cans with improved storage and functional properties, made possible by advancements in packaging technology, has spurred market expansion in the end-use sector for alcoholic and non-alcoholic beverages.
  • However, certain factors, including environmental concerns about the mining of steel and rising material costs, are anticipated to impede the market's expansion.
  • In response to the pandemic, customers opted for long-term food storage options, leading to positive metal packing outcomes. With a significant share in the metal can packaging market, the food and beverages industry witnessed huge demand amidst the COVID-19 pandemic, as the industry falls under the essential commodity. The lockdown enforced across the region due to the COVID-19 pandemic bought a significant change in consumption habits. Since then, there has been an increasing demand for packaged food products, meat, vegetables, and fruits. ​Further, the Russia-Ukraine war has had a significant impact on the overall packaging ecosystem.

Vietnam Metal Packaging Market Trends

Growing Demand for Convenience Food in Vietnam

  • The healthy growth of convenience stores, such as coffee and snack outlets, retail establishments, hospitality, and others, is expected to drive the need to produce metal can packaging.
  • As incomes have increased due to rapid urbanization, the market for convenience food has shown remarkable growth, whereas traditional markets are declining. Further, the frequent turn to convenience food caused due to working professionals' busy schedules support the consumers to seek convenience in everyday products, such as food.
  • Post-pandemic, the market's demand for plant-based foods has significantly increased. Vietnam's vegetarian food exporters are exploring opportunities as the United Kingdom is its primary market. For instance, in August 2022, Dong Thap province-based Bình Loan vegetarian food factory exported two tonnes of canned vegetarian food to the United Kingdom with the support of Longdan, a prominent importer of Vietnamese goods in the United Kingdom.
  • The expansion of modern convenience stores and supermarkets across the country has geared up, which would likely add growth to the market studied. For instance, in July 2022, by the end of the year, WinCommerce, a retail giant, plans to open hundreds of new supermarkets and convenience stores in Vietnam to cater to the increased demand for convenience food products and to accelerate the expansion of its market share in the country.
  • Convenience foods are primarily stored in metal cans to protect and preserve food. The imports of aluminum sheets are increasing, which may signify the demand for aluminum packaging products, such as cans for food packaging. For instance, in 2021, the imports of aluminum sheets, plates, and strips were valued at around USD 983.723 million, a 29% rise from 2020, valued at approximately USD 762.163 million. Due to the rising demand for convenience foods, packaging companies may use more aluminum sheets to produce cans.

Beverage Segment Expected to Hold Significant Growth Rate

  • Vietnam's beer, wine, and other beverage packaging sectors significantly demand metal beverage packaging. There is an increase in recycling and reusability rates, as well as consumer awareness of the need to utilize environmentally friendly materials. Additionally, carbonated soft drinks are preferred to be packaged in metal cans in the country.
  • Due to the various manufacturing coating technologies, the market for metal beverage packaging is rapidly growing in Vietnam. The steel and aluminum parts satisfy safe, dependable, and hygienic beverage packaging requirements. Metal beverage packaging products are inexpensive, functional, and non-contaminating.
  • Beverage cans made of aluminum are the most recycled. Approximately 70% of the metal in typical aluminum cans is recycled. Due to their modest weight and ability to stack, these cans cause fewer overall carbon emissions during transit. Additionally, they increase the logistics organizations' efficiency in storage and delivery.
  • Further, the packaging products may be personalized in terms of colors and 3D printing, as well as embossed, making them visually pleasing to customers. As a result, the country is witnessing increased demand for aluminum packaging products in sustainable packaging.
  • Furthermore, Vietnam's production of drinks increased by 96.8% in 2021, according to statistics from the USDA Foreign Agricultural Service, Vietnam's General Statistics Office, and the Ministry of Industry and Trade (Vietnam). Vietnam's rising wine consumption has increased the demand for metal cans. In 2020, the average monthly consumption of wine and beer in rural Vietnam reached 1.4 liters per person, according to the General Statistics Office of Vietnam. Such products were more regularly consumed in rural Vietnam than in urban regions.

Vietnam Metal Packaging Market Competitor Analysis

The Vietnamese metal packaging market is highly fragmented due to several firms significantly contributing to the market share. The market is highly competitive, with regional players involved in product development. Some key players include Canpac Vietnam Co., Ltd, Nihon Canpack (Vietnam) Co., Ltd, Crown Holdings, Inc., Showa Aluminum Can Corporation, TBC-Ball Beverage Can VN Ltd, etc.

In April 2022, the Chain of Custody Standard and Performance Standard for responsible aluminum manufacturing, procurement, and stewardship was accredited by the Aluminium Stewardship Initiative for TBC Ball Beverage Can Vietnam Limited. The Aluminium Stewardship Initiative Certification assures clients that the company's production plant complies with stringent environmental, ethical, and governance standards, as specified by the ASI Standards. The high sustainability credentials of aluminum can help buyers looking for more ecologically friendly items feel optimistic.

Additional benefits of purchasing the report:

  • 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 & Market Definition
1.2 Scope Of The Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces 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
4.4 Assessment Of The Impact Of COVID-19 On The Market
5.1 Market Drivers
5.1.1 Growing Demand for Convenience Food in Vietnam
5.1.2 Higher Recycling Rates Coupled with Higher End-user Manufacturing Demand in Vietnam
5.2 Market Restraints
5.2.1 Growing Demand for Alternative Products, such as Flexible Plastics
5.2.2 Fluctuations in Raw Material Prices and Environmental Concerns due to Ore Mining
5.3 Overview of the Global Metal Packaging Market
6.1 By Product Type
6.1.1 Cans Aluminum Steel
6.1.2 Barrels & Drums
6.1.3 Caps & Closures
6.1.4 Other Product Types
6.2 By End-user
6.2.1 Food
6.2.2 Beverags Alcoholic Non-alcoholic
6.2.3 Industrial
6.2.4 Personal Care
6.2.5 Other End-user Types
7.1 Company Profiles
7.1.1 Canpac Vietnam Co. Ltd
7.1.2 Nihon Canpack (Vietnam) Co. Ltd
7.1.3 Crown Holdings, Inc.
7.1.4 Showa Aluminum Can Corporation
7.1.5 TBC-Ball Beverage Can VN Ltd (Ball Corporation)
7.1.6 Metal Printing & Packaging Ltd (MPPL)
7.1.7 Greif, Inc.
7.1.8 My Chau Printing & Packaging Corporation
7.1.9 TMB Corporation
7.1.10 Superior Multi-Packaging Limited

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Canpac Vietnam Co., Ltd
  • Nihon Canpack (Vietnam) Co., Ltd
  • Crown Holdings, Inc.
  • Showa Aluminum Can Corporation
  • TBC-Ball Beverage Can VN Ltd (Ball Corporation)
  • Metal Printing & Packaging Ltd (MPPL)
  • Greif, Inc.
  • My Chau Printing & Packaging Corporation
  • TMB Corporation
  • Superior Multi-Packaging Limited