The “United States Aluminum Beverage Cans Market – Growth, Trends, COVID-19 Impact, Forecast (2021 – 2026)”
The United States Aluminum Beverage Cans Market is expected to reach a CAGR of 3% during the forecast period (2021 – 2026)
With the outbreak of COVID-19 pandemic, the aluminum beverage cans in the US region is expected to witness negative growth. Also, the aluminum can manufacturers have been flooded with a pool of issues.
Some of the effects of lockdown include lack of availability of raw materials used in the manufacturing process, supply chain disruptions, fluctuating prices, labor shortages that could cause shipping problems, production of the final product to inflate and go beyond budget, etc.
According to the United States Geological Survey, the primary production of aluminum in the United States slumped to some 1 million metric ton in 2020, owing to the pandemic.
Moreover, domestic aluminum producers, including rolling mills and billet re-melters, saw a notable drop in demand, and in response, halted production intermittently or had been running at reduced capacity, in some cases as little as 30%-40%, or a combination of both, according to S&P Global. Thus, it has affected the aluminum cans market in the region.
Aluminum cans are used in the beverage industry due to the ease of disposal and their recycling advantages. Also, aluminum cans increases the shelf life of the product. Carbonated soft drinks, energy drinks, and alcoholic beverages are among the major end-user segments for the use of aluminum beverage cans.
In the North American region including United States, metal cans made up of steel and aluminum are mostly preferred. These materials have significant properties, such as being softer and lightweight, due to which the manufacturers are able to save costs associated with logistics.
Also, owing to the increasing consumption of both alcoholic and non-alcoholic beverages, such as beer and carbonated drinks, in the region, there is significant demand for aluminum cans in the region. According to the Alcohol and Tobacco Tax and Trade Bureau, in 2020, the volume of beer produced in the United States was 179.95 million barrels. Also, according to the Beer Institute 2020 Report, America’s brewers use 36 billion aluminum cans every year.
source : finance.yahoo.com
