Aluminum Foil Market Set to Witness an Uptick during 2022 to 2030

Posted by Mrudula Karmarkar on December 9th, 2022

The global aluminum foil market size is expected to reach USD 39.59 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.5% over the forecast period. The increasing investments in the Electric Vehicle (EV) industry and rising demand for packaging from the food & beverage, and pharmaceutical industries, along with favorable government policies regarding carbon footprint reduction, are driving the market growth.

Governments around the world are encouraging the production of EVs. For instance, in 2021, the French government unveiled an industrial revival plan worth EUR 30.0 billion (~USD 32.1 billion) in sectors such as nuclear & renewable energy sources, electric cars, semiconductors, and robotics, and revive the industrial sector. In this plan, the government has allocated EUR 4.0 billion (~USD 4.3 billion) for transport and mobility, with a target to produce 2 million EVs and hybrid vehicles by 2030.

The aluminum foil is a thin aluminum sheet ranging from 0.006 mm to the upper ISO defined limit of 0.2 mm. Owing to its properties like high thermal conductivity, excellent resistance, low density, the excellent barrier to moisture, and non-absorbent has increased the demand in the various end-use industries. The current trend in the market showcases the rising popularity of wrapper foil, which is anticipated to continue across the forecast period. Due to its lightweight, flexible, and non-toxic characteristics, its demand has been steadily increasing in the packaging industry. Based on region, Asia Pacific held the largest revenue share of the global market in 2021. In the region, China had the highest revenue share in 2021 but India will register the fastest growth rate in the said forecast period. The growing demand from various end-use industries will propel the use of aluminum foil across the forecast period.

The global aluminum foil market is highly competitive. Key players of the end-use industry are backward integrated and have access to raw materials, have better control over price volatility, and have improved customer access. The year 2021 witnessed investments for capacity expansion and acquisitions. For instance, in April 2021, ANG Lifesciences India acquired Mansa Print and Publisher Ltd. This strategic backward integration is aimed to help expand ANG’s footprint in the pharmaceutical business.

Growth in the global packaging industry is anticipated to augment market growth as the product is widely used for the packaging of several products such as food, beverages, cosmetics, and pharmaceuticals. The increasing demand for Electric Vehicles (EVs) and the growing requirement for air conditioning systems are expected to further augur growth in the demand. Surging demand from the pharmaceutical industry has augmented aluminum foil manufacturing. For instance, in November 2021 Polfarmex invested in a new packaging line of the blister packs, which will increase its production capacity by 60%.

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The U.S. was the largest market in North America in 2021 and this trend is anticipated to continue over the forecast period. The product is extensively used in the food & beverage, automotive, and FMCG industries. The country is trying the boost the manufacturing of the various end-use industries, which is anticipated to propel the demand for aluminum foils in the said forecast period.

The U.S. imposed anti-dumping duty for aluminum products like foils, on countries such as Oman and China, to safeguard the domestic manufacturing industry. In July 2021, Novelis Inc. planned to invest USD 7 million to restart its aluminum foil manufacturing unit in Terre Haute, Indiana, U.S. Novelis Inc. had stopped its production in 2014 owing to unfavorable market dynamics.

Aluminum Foil Market Report Highlights

  • Based on product, container foils are anticipated to register the fastest CAGR of 6.5%, in terms of revenue, from 2022 to 2030, owing to increasing urbanization, the rise in the working population, and the corresponding rise in demand for packaged food
  • Based on end-use, the packaging is anticipated to register a CAGR of 5.9%, in terms of revenue, from 2022 to 2030, since aluminum foil packaging is consumed by the food & beverage, and pharmaceutical industries
  • The packaging end-use segment is further divided into food & beverage, tobacco, pharmaceutical, and others. Food & beverage is likely to register the highest CAGR of 6.0%, in terms of revenue during the forecast period. Growth is attributed to the growing demand for takeaway and processed food
  • Based on region,Asia Pacific is expected to register the highest CAGR of 6.2%, in terms of revenue, over the forecast period. Rising emphasis on the EV industry and increasing production of packaged food is propelling growth in the region

Batteries constitute an integral part of EVs, and aluminum foil is used in lithium-ion batteries for electrolytic capacitors. Growth in the EV market is anticipated to further augment product demand in the coming years. For instance, in October 2021, Toyota Motor announced that they plan to build a USD 1.3 billion battery plant for EVs and hybrid vehicles in North Carolina, U.S.

The demand for aluminum foils in the building and construction segment is high owing to their lightweight, corrosion resistance, and insulating properties. Rising investments in the construction industry are expected to propel the use of aluminum foil in the country. For instance, in 2021 the construction spending in the U.S. was USD 1,589.0 billion which was 8.2% more than USD 1,469.2 billion in 2020.

List of Key Players in the Aluminum Foil Market

  • ACM Carcano
  • Amcor
  • Assan Aluminyum
  • Ess Dee Aluminium
  • Eurofoil
  • Hindalco Industries Limited
  • Huawei Aluminium
  • Laminazione Sottile
  • Shanghai Metal Corporation
  • UACJ Foil Corporation
  • Xiamen Xiashun Aluminium Foil Co., Ltd
  • Zhejiang Junma Aluminum Industry

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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