The global aluminium cup market is expected to register a market value of US$ 8.2 billion in 2023 and is projected to accumulate a valuation of US$ 15.4 billion by exhibiting a CAGR of 6.5% in the forecast period 2023 to 2033. The aluminium cup market registered a CAGR of 5.2% in the historical period 2018 to 2022.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 8.2 billion |
| Projected Market Value in 2033 | US$ 15.4 billion |
| Growth Rate (2023 to 2033) | 6.5% CAGR |
Aluminium cups are a corrosion-resistant and lightweight metal that has been widely used as everyday items, such as cars, cookware, and electronics among others. Aluminium cups are increasingly gaining popularity due to their versatility and durability which is expected to drive its adoption trend in the coming years, thereby leading to market growth.
Aluminium cups offer several advantages over other materials, such as glass or plastic. Incredible sustainability, 100% recyclable nature, and multiple end-use features are expected to fuel the demand for these cups during the forecast period. Also, excellent durability and a high tolerance for wear and tear make it an ideal product for various uses. They also have a very long lifecycle and these cups don’t need to be replaced every now and then. Additionally, wide use of these cups in storing hot and cold beverages further drives their demand in various end-uses.
The thriving tourism sector worldwide, followed by rising use of reusable cups like aluminum cups is driving the market growth. Moreover, ever-rising need to cut plastic waste is further anticipated to foster growth in the market. The rising number of travellers around the world is promoting the trend for portable products, one of which is a reusable aluminium coffee cup, as these cups are widely used for camping or adventurous activities, which is further expected to amplify product sales in the forthcoming period.
In order to save the environment, reducing plastic use is a necessary action to take. The reusability feature increases the significance of these cups to be used as baking cups, tea cups, and coffee cups. According to United Nations Environment Programme, 400 million tons of plastic waste is generated every year across the globe. Moreover, in 2018, a vast amount of plastic waste was found in the stomach of a 31-foot marine mammal carcass which also included 115 plastic disposable cups.
It is estimated that around 500 billion plastic cups are used every year all around the world. The rising need for reusable cups among the populace is further anticipated to drive market growth. Also, the Massive chain Starbucks witnesses a 157% growth in the demand for reusable cups from different stores in London. These trends and data altogether will create many opportunities for the market expansion of aluminium cups in the forecast period.
Geographically, Asia Pacific is expected to dominate the aluminium cup market by accounting for over 39% market share by end of the forecast period. The growth is attributed to rising product demand from various applications, such as food service outlets, hotels and restaurants, bars & pubs, and pizza delivery restaurants.
In Europe, increasing number of fast-food chains and outlets is propelling product sales across this region. Moreover, increasing health awareness among consumers will positively benefit the industry’s growth in the coming years.
The market in North America is expected to grow with a CAGR of 6% during the forecast period. Factors such as growing consumer preference for coffee and refreshing drinks at workplaces and strong brand consciousness regarding Starbucks Coffee Company products are driving market growth in this region.
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Recent innovations, product launches, breakthroughs in technology, mergers, acquisitions, collaborations, and partnerships within the companies involved in manufacturing aluminium Cups are anticipated to create new opportunities for market expansion during the forecast period.
According to the latest study by FMI, aluminium cup market is expected to show higher single digit CAGR growth over the projected forecast period. Sizeable increase in number of consumers opting for plastic alternatives has provided positive outlook to the industry.
Moreover, constant demand for cups from packaging industry has bolstered the demand and sales of cups with a prospect of growing at a CAGR of around ~7% over the next ten years.
Innovation and sustainability today is at the forefront of every business, from fashion and packaging to chemicals and pharmaceuticals. Constant demand to cut carbon footprint is compelling businesses to adapt sustainable practices.
Since plastic still holds major share in packaging and cups market, there is an ever increasing demand to increase the production of alternative materials. Aluminium being 100% recyclable has been identified as a major alternative to plastic cups. Also temperature control characteristic of aluminium helps keeping the beverages cool for a longer period of time, thus consumers are preferring aluminium cups over plastics ones.
Moreover, these cups are washable and reusable which saves the cost of purchase for every occasion. Also, aluminium cups being durable and shatter proof can be used for multipurpose such as camping, birthdays, pool parties and several other occasions.
Apart from above mentioned factors, incredible sustainability credentials of aluminium has positioned it well in the market with prospects of growing at a steady pace over the forecast period.
Principal Consultant
Aluminium cup has shown significant improvement in terms of recycling rates and replacement for plastics. For instance, in Europe around ~75% of the aluminium gets recycled counter to ~40% of the plastics. Also it has been estimated that around ~75% of the aluminium ever produced are still in used today.
Additionally, aluminium cups can be recycled number of times without it losing the desirable qualities. Also, based on these qualities eco-conscious consumers are increasingly opting for cup made from aluminium, providing an uptick growth to demand globally.
Apart from being eco-friendly, these cups are made with BPA free and lead free materials without using phthalates which ensures that cups does not have any negative impact on the health of consumers.
Owing to the above factors, aluminium made cups has been identified as a major alternative to plastic cups, which not only protects the environment through its sustainable characteristics but also ensures to provide consumers with ecstatic experience.
Europe has established itself as leader in sustainable practices, shifting its approaches, drafting laws to tackle the climate issues. Europe has committed itself towards the implementation of 2030 sustainable agenda which would establish the region at the forefront of sustainable practice.
Additionally, Europe consumers are more eco-conscious when it comes to purchase consumer goods. For instance, around ~60% of the consumers in United Kingdom and Germany said to have bought products with eco-friendly packaging. Also aluminium recycling rates is one of the highest in Europe, with around 80% of aluminium cans and cups being recycled.
Moreover, market players are constantly trying to establish their production plants in Europe in order to penetrate the market in an effective way.
Constant innovation and increasing awareness among consumers regarding the positive impact of aluminium cups is projected to drive the demand and sales of cups in Europe.
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Over the past half-decade there has been a rise in trend among young consumers to opt for sustainable products. Cups made from aluminium has provided consumers in the region with an alternative to the plastics and increase in consumption pattern can be seen.
Additionally, recent surveys have found that consumers in North America are ready to pay more for sustainable products which have least negative impact on the environment. Also, high disposable income in the region has added to the increased consumption of cups.
Moreover, the region has some prominent players that are continuously involved in innovation, making product as per the consumers need. All these stated factors along with increased in outdoor activities such as pool parties and sports activities is projected to propel the growth in demand and sales of cups.
Some of the key prominent players in the industry includes
Aforementioned players are involved in organic growth strategies such as product launches, innovation and capacity expansion.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
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Aluminium Cup Market
