ALUMINUM BAG MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Aluminum Bag Market Size and Trends

The aluminum bag market size is expected to reach US$ 19.92 Bn by 2030, from US$ 12.63 Bn in 2023, exhibiting a compounded annual growth rate (CAGR) of 6.7% during the forecast period. Aluminum bags refer to packaging solutions made from aluminum material. They are lightweight, durable, and provide excellent barrier against moisture, oxygen, and light. Aluminum bags find applications across industries such as food, pharmaceuticals, cosmetics, chemicals, and others for packaging of products. The market growth is driven by the rising demand from food delivery and e-commerce sectors due to the lightweight and convenient nature of aluminum bags.

The aluminum bag market is segmented by product type, end user industry, material type, closure type, printing type, and region. By product type, the foil bags segment accounted for the largest share of over 40% in 2023. Foil bags are highly preferred for food packaging applications due to their excellent barrier properties. Increasing consumption of packaged food is contributing to the growth of foil bags.

Aluminum Bag Market Drivers

• Increasing demand from food delivery and takeaway sectors: Rapid growth of food delivery and takeaway food sectors is a major factor driving the aluminum bag market. With rising urbanization and busy lifestyles, consumers are increasingly ordering food online and preferring takeaways. This has increased the demand for convenient and lightweight packaging solutions like aluminum bags. Aluminum bags provide excellent barrier against moisture, oxygen and light, by keeping food fresh during transit. Their lightweight structure also reduces transportation costs. According to industry estimates, the global takeaway food market is projected to grow at over 8% CAGR from 2022 to 2030. The key market players in the food delivery sector like UberEats and Grubhub are expanding globally. Rising penetration of food delivery apps and sites will propel the growth for aluminum food packaging and bags. For instance, United Nations World Food Programme, the use of aluminium bags in food packaging increased by over 28% between 2020-2021. This clearly highlights their increasing popularity among food delivery companies. The existing trend of rising remote working and global health concerns that reduce dine-out options have further accelerated the growth of the food delivery market over the past couple of years. As this sector continues to expand with new players entering the market, it is expected to drive consistent demand for aluminium bags in the foreseeable future. The bags' recyclability and sustainability credentials also make them an attractive proposition for delivery companies focused on reducing plastic waste
• Growth of pharmaceutical industry and regulations supporting aluminum packaging: The expanding pharmaceutical industry worldwide is anticipated to fuel the growth of the aluminum bag market. Aluminum provides complete protection to pharmaceutical products including drugs, vaccines, and biological during storage and distribution. Its excellent barrier properties prevent contamination as well as leakage. Regulatory bodies like U.S. Food and Drug Administration (FDA) have standards supporting use of aluminum packaging for pharma products. The global pharmaceutical packaging market is expected to reach over US$ 200 Mn by 2030. High investments in research and development (R&D) of biologics and injectables, which need specialized aluminum packaging will significantly drive the demand of aluminum packaging. For instance, according to the World Health Organization (WHO) report on access to medicines published, in 2021, around 2 Mn people globally lack regular access to essential medicines. The report highlighted the critical need to boost local manufacturing and packaging of essential drugs to enhance availability and lower costs. Several developing markets in Asia, Africa and South America are witnessing high growth in domestic pharmaceutical manufacturing with a focus on key therapies.
• Benefits of aluminum packaging driving adoption across industries: Aluminum packaging has numerous benefits like durability, barrier properties, lightweight structure, high recyclability and aesthetics which make it suitable across different industries. Cosmetics and personal care brands are using aluminum bags and pouches for premium packaging of products including creams, lotions, and fragrances. Chemicals like pesticides and fertilizers are packed in aluminum bags to avoid contamination and Aluminum pouches are widely used for packaging of premium dry foods like coffee. The versatility and wide range of applications of aluminum bags are thus contributing to the market growth. For instance, according to the Government of India’s statistics, aluminum production grew by 5% year-on-year between 2020-21, thus indicating rising preferences. With global push for sustainability and consumer safety, aluminum packaging adoption is expected to steadily rise in near future, thus positively impacting the aluminum bag market.
• Advancements in aluminum packaging platforms: The key market players are constantly focusing on innovations in aluminum packaging technologies such as development of eco-friendly coatings, introduction of smart aluminum bags with trackers, built-in handles and spouts, and improvement in barrier properties against (UV) ultra violet The companies are also working on reducing the aluminum thickness further, without compromising on packaging integrity. Such advancements are expected to expand the capabilities of aluminum bags and pouches, thereby leading to higher adoption across verticals. For instance, the United Nations Environment Program (UNEP) estimate that globally around 14% of the total food produced is wasted at the consumer level each year. Aluminum bags' ability to extend the shelf-life of various snacks, dry foods, cereals and more by several weeks helps lower this alarming food wastage rate.

Aluminum Bag Market Trends

• Customization and aesthetic enhancements in aluminum bags: Consumers expect a superior unboxing experience. This has led to customization and aesthetic enhancement of aluminum bags using textures, 3D prints, colors, and matt/gloss finishes. For cosmetics, brands are leveraging decorative aluminum bags to showcase product information and reviews. In food applications, bags are printed with recipes, nutritional values and QR codes for customer engagement. Aesthetic appeal helps brands differentiate and elevate unboxing experience. The global printed aluminum bags market is projected to grow at over 6% CAGR from 2022 to 2030. For instance, Tumi—a major luggage brand, reported that, over 50% of their online sales in 2021 were for repeat customization designs Tumi Company Reports, 2021. The demand has driven aluminum bag companies to increase their customization capabilities on their websites and in retail stores.
• Launch of recycled and biodegradable aluminum packaging: With sustainability concerns on rise, brands are increasing focus on eco-friendly aluminum packaging made using recycled content and biodegradable materials. For instance, Novelis launched Evercycle, a portfolio of sustainable aluminum solutions containing high recycled content. Plastic-free and compostable aluminum packaging has also been introduced. Government policies are incentivizing use of recycled aluminum. For example, MetalMatters certification in Europe promotes recyclability of aluminum in packaging. Such developments align with circular economy goals. According to a study commissioned by the manufacturer and conducted by an independent third party, the energy required to produce bags with 80% recycled content is over 60% lower than bags made from primary aluminum. The study also showed that the recycled aluminum bags have the same protective properties as non-recycled bags.
• Lightweight and functional aluminum packaging: Lightweighting is a key trend in the aluminum bag market. Reducing material thickness helps lower packaging weight, transportation costs, and environmental impact. Brands are moving towards lightweight aluminum foils and films without compromising on packaging integrity. Coatings and chemical etching are being used to enhance barrier properties and functionality of thinner aluminum substrates. Market players are also developing durable lightweight aluminum lining for flexible pouches. For instance, according to a report in 2022 by UNEP, aluminum is the second most recycled material after steel with globally over 69% of all aluminum produced since 1888 still in use. This high recycling rate coupled with lightweight yet durable properties makes aluminum very appealing to brand owners aiming for eco-friendly packaging. Major brands such as PepsiCo, Coca Cola, Nestle and Mondelez have significantly increased their use of aluminum cans and bottles over the past few years. As more consumer products transition to aluminum packaging, the spin-off demand for ancillary products such as aluminum bags is expected to rise substantially in the near future
• Rise of plastic-free and sustainable packaging: Concerns around plastic waste and toxicity have led to development of plastic-free aluminum packaging. Brands across food, pharmaceuticals, and consumer goods domains are seeking alternate solutions to plastics. Aluminum provides durability along with sustainability. Aluminum bags are also combined with paper substrates to provide the functionalities of plastics without the negative environmental impact. Government regulations are also imposing bans on certain single-use plastic packaging, providing impetus to plastic-free aluminum packaging adoption. According to the United States Environmental Protection Agency, aluminium recycling rates were 70% in 2021. This is significantly higher than plastic bag recycling rates which hover around 20%. The energy required to produce aluminium from recycled material is only 5% of that required to produce new aluminium. This makes aluminium bag production much more energy efficient than single-use plastic bags which use up resources without being recycled at scale.