Aluminum Foil Market Size, Share & Trends Analysis Report By Product (Wrapper Foils, Container Foils), By End-use (Packaging, Industrial), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global aluminum foil market size was valued at USD 25.79 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2030. Growth of 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 pharmaceutical. Furthermore, the increasing demand for electric vehicles (EVs) and the growing requirement for air conditioning systems are expected to further augur growth for aluminum foils. Surging demand from the pharmaceutical industry has augmented the product’s manufacturing. For instance, in November 2021 Polfarmex invested in a new packaging line of blister packs, which will increase its production capacity by 60%.

The U.S. was the largest market in North America in 2022 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.

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 the product 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.

Product Insights

Wrapper foils held the largest revenue share of more than 20.0% in 2022 and this trend is going to continue across the forecast period. Container foil is anticipated to have the highest growth rate across the forecast period. It accounted for a revenue share of more than 14.0% in 2022. Foil lids and pouches together accounted for more than 15.0% of the global revenue in 2022.

Aluminum foils have gained immense popularity in the packaging industry owing to their lightweight, superior barrier properties, cost-effectiveness, and easy-to-use nature. This has boosted their demand in restaurants, domestic households, supermarkets, and food delivery businesses.

Food and beverage companies across the world have announced expansion plans to cater to the growing demand for packaged food. For instance, in June 2021, Nestle USA announced the expansion plan for its frozen food facility in South Carolina, U.S. for an investment of USD 100 million. Such investments are anticipated to drive packaging consumption and eventually benefit market growth during the forecast period.

Blister packs are anticipated to register significant growth due to investments being witnessed in the pharmaceutical industry during the forecast period. For instance, in July 2021, Glenmark Life Sciences in India announced an investment of USD 78.3 million (INR 600 crores) for capacity expansion to cater to markets such as Brazil, Mexico, South Korea, Taiwan, and Saudi Arabia.

End-use Insights

Packaging held a revenue share of over 65.0% in 2022 and is anticipated to grow at a steady rate during the forecast period. The segment is further divided into food & beverage, tobacco, pharmaceuticals, and others. The food & beverage sub-segment accounted for the largest revenue share in 2022 of packaging end-use. Due to growing urbanization across the world, the demand for packaged food has been increasing and this trend is expected to continue during the forecast period.

The industrial segment is expected to grow at a CAGR of 4.7%, in terms of revenue over the forecast period. It is further segmented into HVAC, EV battery, and others. Finstock is widely used in HVAC and refrigeration systems. The demand for energy-saving equipment with reduced carbon emissions is expected to sustain the growth of aluminum foils in this segment. Leading air conditioner manufacturers around the world are increasing their capacity to cater to growing demand.

Aluminum foils are also used in electrolytic capacitors of Li-ion EV batteries. The industrial segment is anticipated to witness steady growth due to the increased impetus on EVs. According to the International Energy Agency (IEA), EV sales more than doubled to 6.6 million in 2021, representing about 9% of global vehicle sales. Many EV capacity expansion plans have been announced across the world. Every automobile maker is planning an entry into the EV segment and is expected to produce EVs by 2030.

Regional Insights

Asia Pacific held a revenue share of more than 53.0% in 2022. The growing demand for packaging is anticipated to propel product demand over the forecast period. For instance, in January 2022, in India, the board of SRF Limited approved INR 425 crore (~USD 5.60 billion) to set up an aluminum foil manufacturing plant in Jaitapur, Indore. The plant will cater to the packaging requirements coming from the food & beverage industry in the domestic and export markets.

North America is anticipated to register a growth rate of 5.4%, in terms of revenue, across the forecast period.Increasing focus on EV battery production is expected to benefit market growth. For instance, in March 2021, the Canadian government announced the investment of USD 100 million in Lion Electric’s battery manufacturing facility in St-Jerome, Quebec, Canada.

Europe is anticipated to register significant growth over the forecast period. Factors such as government initiatives to promote food exports, and decarbonization targets have been drivers of the foils industry. The export of aluminum foil is anticipated to increase over the forecast period mainly due to the lifting of trade tariffs by the U.S. government in October 2021, on steel and aluminum.

The Middle East & African region is anticipated to be driven by increasing takeaway outlets that cater to the growing working-class population. Additionally, there have been initiatives by the government and environmental organizations to spread awareness to restrict plastic packaging in countries such as Saudi Arabia and the UAE.

Key Companies & Market Share Insights

The market is highly competitive and fragmented with the presence of numerous players worldwide. Companies also have to compete with substitute packaging such as paper, glass, and plastic. Therefore, they have to constantly engage with customers to stay ahead in the market. Growing product demand is encouraging companies to invest in expanding their manufacturing units. For instance, in September 2021, Shyam Metalics announced to invest INR 300 crore (~USD 3.97 billion) to set up an aluminum foil plant for the packaging industry. Some prominent players in the global 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

Aluminum Foil Market Report Scope

Global Aluminum Foil Market Report Segmentation

This report forecasts revenue and volume growth at the global, country & regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global aluminum foil market report based on product, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Wrapper Foils

  • Containers Foils

  • Foil Lids

  • Pouches

  • Blister Packs

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Packaging

    • Food & Beverage

    • Pharmaceutical

    • Tobacco

    • Others

  • Industrial

    • HVAC

    • EV Battery

    • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Italy

    • Turkey

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa