April 24, 2024

Aluminum Bag Market Driven by Growing Sustainability Concerns in Packaging

Aluminum bags are commonly used for packaging snacks, pet food, coffee, and other dry food products. They are gaining prominence as an alternative to plastic bags due to their superior recyclability and sustainability credentials. Aluminum bags provide an effective barrier against moisture, oxygen, and other external contaminants, helping extend the shelf life of packaged products. They are lightweight yet highly durable, making them suitable for transport and storage. The shine and printability of aluminum also allow product brands to attract consumers through vibrant and eye-catching graphics on the packaging.

The global Aluminum Bag Market is estimated to be valued at US$ 890 million in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Plastic bags are facing a global backlash due to issues related to waste management and environmental pollution. Aluminum bags, on the other hand, can be recycled indefinitely without any loss in quality. They have high recycling rates compared to other packaging materials. Manufacturers are aggressively marketing the eco-friendly properties of aluminum bags to attract environmentally conscious consumers. Several companies have pledged to use only reusable, recyclable, or compostable packaging by 2025, creating strong demand for aluminum bags. Furthermore, advanced aluminum bag designs with improved graphics and barriers are expanding the applications of these bags beyond food into other industries like pharmaceuticals and cosmetics.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the aluminum bag market is moderate. Significant capital is required to set up a manufacturing plant. However, the availability of raw materials at low prices and growing demand provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers in the aluminum bag market is high. Buyers can negotiate lower prices due to the availability of numerous manufacturers and suppliers in both developed and developing countries.
Bargaining power of suppliers: The bargaining power of suppliers in the aluminum bag market is moderate. Suppliers of raw materials such as aluminum have limited bargaining power due to the availability of substitute materials.
Threat of new substitutes: The threat of new substitutes in the aluminum bag market is high. Substitute packaging materials such as paper bags, plastic bags are readily available at competitive prices.
Competitive rivalry: The competitive rivalry in the aluminum bag market is high due to the presence of numerous players. Companies compete on manufacturing techniques, pricing, and product differentiation.

Key Takeaways
The Global Aluminum Bag Market Size is expected to witness high growth over the forecast period.

Regional analysis: Asia Pacific is expected to grow at the highest CAGR over the forecast period owing to increasing demand from industries such as food & beverage, pharmaceutical in emerging economies such as India and China.

Key players: Key players operating in the aluminum bag market are Amcor Limited, Bemis Company Inc, Berry Global Inc., Mondi, Coveris, Sealed Air, Sonoco.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it