Composite Paper Cans Market Is Expected To Rise At A CAGR Of 4.8% During 2022-2031

Composite paper cans are emerging as a preferred packaging solution as industries and consumers alike exhibit demand for sustainable alternatives to plastic. As per a study by Future Market Insights (FMI), the global composite paper cans market will exhibit a CAGR of 4.8% between 2021 and 2031.

Composite paper cans are made from paper fiber bodies with one or both ends made from metal or paper. Aluminum foil or plastic liners are provided inside the cans to minimize leakage. Therefore, these containers are primarily used in the beverage industry.

Increasing demand for environment friendly composite paper cans is encouraging key players to expand their production capacity. The demand for packaging solutions with longer shelf life and ease of use will rise in response to the growing popularity of take-away and on-the-go food items. As per FMI, food and beverage packaging will account for over half of composite paper cans sold through the forecast period.

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In recent years, the growing concerns over environmental damage have pushed consumers and marketers towards green products and services. Increasing focus on reusable or recyclable products will pave the way for the growth of the market in the near future.

Key Takeaways from Composite Paper Cans Market Study

  • Cap closures account for over 61% value share in the global market owing to easy handling and lower risk of wastage.
  • Spiral winding production is gaining traction as it offers high tensile strength in composite paper cans. This segment is estimated to hold 49.9% of the market by the end of 2031.
  • China will emerge as a leading market registering a CAGR of 8.8% during 2021 -2031. The demand for composite paper cans will rise due to higher sales of take-away food and beverages.
  • The U.S. accounts for over 63% of North America, due to the presence of key players and rising acceptance of new, lightweight, and cost-effective liquid packaging solutions.
  • Expansion of the food sector will support growth in Germany, which is expected to account for nearly 15% of sales recorded in Europe by 2031.

“Companies operating in the market are focusing on offering sustainable solutions. Some of them are experimenting with technologies to offer greater usability of composite paper cans,” says a FMI analyst.

Composite Paper Cans Emerge as Sustainable Alternative to Plastic Cans

There are several reasons as to why composite paper cans are far better as opposed to ordinary cans. These are durability, eco-friendly nature, and low cost. Also, composite materials have the highest strength to weight ratio.

Composite paper cans resist damage from harsh weather and chemicals, which is driving their application in the food, chemicals, cosmetics, and personal care industries.

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Considering the challenging conditions of the COVID-19 pandemic, the returns from composite paper cans has declined substantially across the globe. Therefore, the Y-o-Y growth rate in the year 2020 dropped by nearly 1.6% as compared to 2019.

A moderate slump in the food & beverage and retail segments has been observed, owing to difficulties in maintaining supply chains. The demand for composite paper cans is expected to recover strongly owing to growth in sustainability and as consumers adapt to hygiene practices.

Who is Winning?

The tier 3 players in the market hold 70-80% of the global composite paper cans market. Expansion of production capacities and investments into product development are key strategies holding the attention of manufacturers.

Smurfit Kappa Group plc, Amcor plc, Mondi Group plc, Sonoco products company, Ace paper tube, Irwin packaging, PTS manufacturing, Canfab packaging and among others are the prominent players in the global composite paper cans market.

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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.

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