The Global Industry Analysis Of Aluminium Foil Market

Globally, the aluminum foil market is witnessing tremendous growth from developing markets mainly due to

Globally, the aluminum foil market is witnessing tremendous growth from developing markets mainly due to robust economic growth and expanding working class with increasing disposable income. Moreover, the transition in lifestyle which involves modified food habits has also increased the demand for the aluminum foil market.

The global aluminum market can be divided into non-packaging and packaging applications. For non-packaging applications, aluminum foils are utilized in capacitors and cable wrap and the heat transferring tube in the air conditioners. In the case of packaging applications, it is used to protect the food from chemical, climatic, and environmental hazards.

Let’s have an in-depth analysis of the global aluminum foil market.

Global Market Size of Aluminium Foil

The global aluminum foil market is anticipated to rise at a CAGR of 5.5 percent by 2020 to touch 6.4 MMT during the projected time. China holds the largest share of the global aluminum market. This is largely credited to the expertise of Chinese companies to manufacture aluminum foils at a cheaper cost than foreign competitors. India is another emerging region, which has a higher cost of aluminum foil as opposed to other regions owing to the greater cost of raw materials and elevated excise duty rate. The developing regions with their immense populations and undeveloped market condition present higher growth prospect for the aluminum foil manufacturing countries.

Uses of Aluminium Foil

Aluminum foils offer numerous benefits to the food and packaging industries including recyclability and consumer friendliness. Aluminum foils are extensively used by the food industry to pack items such as cookie sheets, baking pans, roasting pans, and pizza pans. Thus, there are a variety of aluminum foils and they are available in various shapes and sizes, which can be effortlessly customized to satisfy customer requirement.

Consumers using aluminum foils have the advantage of freezing or heating food products in the foil package directly, without the concern of destroying or decontaminating the food. Other utilization methods of aluminum foils include confectionary, health care, beverage, personal care, and other industrial applications.

The Demand-Supply Dynamics

A rise in demand from the automobile industry and increasing consumption of flexible packaging such as pouches have strengthened the growth for aluminum foils on a global scale. Furthermore, increased demand from the snacks and chocolate industry, along with the pharmaceutical industry has fueled the demand for aluminum foils industry. In the case of the milk industry, the consumption of aluminum foil for producing milk cap bottles may decrease in a few years as tetra packs for storing milk are expected to substitute the milk bottle industry.

The market for aluminum foil is estimated to develop as the sales for packaging are poised to grow owing to the rise in the conventional packaging of goods. Moreover, a growing focus on promoting environment-friendly and sustainable goods is expected to drive growth.

Since aluminum containers are leak resistant and keep the food fresh for a long time, they are utilized largely in takeaway restaurants and food service companies. Aluminum foils are also employed by the financially weaker section of the society as they are easily accessible and inexpensive.

The future of the aluminum foils industry relies on technological advancement and the manufacturing improvement of the quality of the foil. Enhanced productivity levels of mills along with a reduction in cost and improved exports will support the industry in flourishing. Moreover, being a conductive material, aluminum foils can expedite the baking and freezing method as opposed to other packaging supplies, which will spur the demand for aluminum foil in the next few years.

Globally, the aluminum foil market is witnessing tremendous growth from developing markets mainly due to robust economic growth and expanding working class with increasing disposable income. Moreover, the transition in lifestyle which involves modified food habits has also increased the demand for the aluminum foil market.

The global aluminum market can be divided into non-packaging and packaging applications. For non-packaging applications, aluminum foils are utilized in capacitors and cable wrap and the heat transferring tube in the air conditioners. In the case of packaging applications, it is used to protect the food from chemical, climatic, and environmental hazards.

Let’s have an in-depth analysis of the global aluminum foil market.

Global Market Size of Aluminium Foil

The global aluminum foil market is anticipated to rise at a CAGR of 5.5 percent by 2020 to touch 6.4 MMT during the projected time. China holds the largest share of the global aluminum market. This is largely credited to the expertise of Chinese companies to manufacture aluminum foils at a cheaper cost than foreign competitors. India is another emerging region, which has a higher cost of aluminum foil as opposed to other regions owing to the greater cost of raw materials and elevated excise duty rate. The developing regions with their immense populations and undeveloped market condition present higher growth prospect for the aluminum foil manufacturing countries.

Uses of Aluminium Foil

Aluminum foils offer numerous benefits to the food and packaging industries including recyclability and consumer friendliness. Aluminum foils are extensively used by the food industry to pack items such as cookie sheets, baking pans, roasting pans, and pizza pans. Thus, there are a variety of aluminum foils and they are available in various shapes and sizes, which can be effortlessly customized to satisfy customer requirement.

Consumers using aluminum foils have the advantage of freezing or heating food products in the foil package directly, without the concern of destroying or decontaminating the food. Other utilization methods of aluminum foils include confectionary, health care, beverage, personal care, and other industrial applications.

The Demand-Supply Dynamics

A rise in demand from the automobile industry and increasing consumption of flexible packaging such as pouches have strengthened the growth for aluminum foils on a global scale. Furthermore, increased demand from the snacks and chocolate industry, along with the pharmaceutical industry has fueled the demand for aluminum foils industry. In the case of the milk industry, the consumption of aluminum foil for producing milk cap bottles may decrease in a few years as tetra packs for storing milk are expected to substitute the milk bottle industry.

The market for aluminum foil is estimated to develop as the sales for packaging are poised to grow owing to the rise in the conventional packaging of goods. Moreover, a growing focus on promoting environment-friendly and sustainable goods is expected to drive growth.

Since aluminum containers are leak resistant and keep the food fresh for a long time, they are utilized largely in takeaway restaurants and food service companies. Aluminum foils are also employed by the financially weaker section of the society as they are easily accessible and inexpensive.

The future of the aluminum foils industry relies on technological advancement and the manufacturing improvement of the quality of the foil. Enhanced productivity levels of mills along with a reduction in cost and improved exports will support the industry in flourishing. Moreover, being a conductive material, aluminum foils can expedite the baking and freezing method as opposed to other packaging supplies, which will spur the demand for aluminum foil in the next few years.