Aluminum Bags Are Estimated To Witness High Growth Owing To Rising Sustainability Concerns

Aluminum bags provide an ideal packaging solution for food, personal care, and pharmaceutical products by maintaining nutrient value, freshness and also helps extend shelf life. Aluminum as a packaging material delivers excellent barrier properties and is 100% recyclable, making it highly sustainable. Aluminum bags help companies achieve their sustainability goals for packaging while also offering branding advantages through printing capabilities.

The global Aluminum Bag Market is estimated to be valued at US$ 9.83 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Rising sustainability concerns among consumers and regulatory push for eco-friendly packaging present a huge market opportunity for aluminum bags. Aluminum being highly recyclable satisfies the growing demand for sustainable packaging globally. Brand owners are increasingly embracing aluminum bags for their packaged products to attract ethically-conscious consumers. Furthermore, governments across countries have implemented regulations prohibiting single-use plastic bags and promoting recyclable materials like aluminum. This supportive regulatory environment is expected to drive further adoption of aluminum bags during the forecast period.

Porter's Analysis

Threat of new entrants: Low capital requirements and established supplier network lowers barriers for new companies. However, established brands and regulations hinder easy entry.

Bargaining power of buyers: Large retail chains can negotiate lower prices due to high volume purchases. However, branded and recyclable products offer less bargaining power.

Bargaining power of suppliers: Few global aluminum producers exist with proprietary technologies increasing supplier power. However, recyclable alternatives balance dependence.

Threat of new substitutes: Plastic, paper and bio-based bags pose substitution threat. However, aluminum is lightweight and highly recyclable maintaining demand.

Competitive rivalry: Intense competition exists among major brands for market share and private labels. Innovation in sustainability and value-added features intensifies rivalry.

SWOT Analysis

Strengths: High recyclability. Lightweight and corrosion resistance properties. Large global production capabilities.

Weaknesses: Higher material costs than alternatives. Perceptions around sustainability could impact demand.

Opportunities: Growth in food delivery and e-commerce driving volume sales. Regulations against plastics and focus on sustainability present opportunities.

Threats: Substitution threat from biodegradable and paper options. Volatility in aluminum prices pose risks.

Key Takeaways

The global Aluminum Bag Market Share is expected to witness high growth. The market size for 2024 is US$ 9.83 Bn with a CAGR of 13% during the forecast period of 2023 to 2030. North America dominates due to large food packaging sector and regulations against plastics.

Regional analysis shows Asia Pacific is the fastest growing region owing to rising food deliveries and large population. China is the largest producer and consumer of aluminum globally.

Key players operating in the aluminum bag market are Amcor, Mondi, Sonoco, Bemis, Novolex, Berry Global, Pactiv, ProAmpac, Coveris, Huhtamaki, Technovin, Flexopack, Celplast, UltraSource, Printpack, Bryce, Genpak, Astrapak, Plus Packaging, Presto. Major players focus on capacity expansions and product innovation around sustainability and barrier properties.