MEA Metal Cans Market Outlook to 2030

MEA Metal Cans Market Overview

• In 2023, the Middle East and Africa (MEA) Metal Cans Market was valued at USD 3.5 billion. The market has been driven by a growing demand for sustainable and recyclable packaging solutions, particularly in the food and beverage sector. This growth has been supported by increased urbanization and the rising consumer preference for eco-friendly packaging options. Additionally, the proliferation of the beverage industry, coupled with increased production of processed foods, has substantially contributed to the growth of the metal cans market in the region.

• The MEA Metal Cans Market is dominated by key players such as Ball Corporation, Crown Holdings Inc., Ardagh Group, Can-Pack S.A., and Nampak Ltd. These companies have maintained their positions through innovation and the expansion of their manufacturing capacities. For example, Ball Corporation has enhanced its aluminum can production lines to meet rising demand in the region. These key players continuously invest in R&D to introduce lighter and more sustainable can designs, catering to various industries such as food, beverages, and household goods.
• Governments in the MEA region, notably in Saudi Arabia and the UAE, have been launching sustainability campaigns that emphasize the importance of recycling and reducing plastic usage. In 2023, the Saudi Green Initiative included specific mandates to reduce plastic packaging waste, thereby encouraging the use of recyclable metal cans. Similarly, the UAE government has introduced new packaging regulations that mandate an increased focus on sustainability, aiming for a 75% recycling rate by 2025.
• The MEA Metal Cans Market is dominated by cities like Dubai, Riyadh, and Cairo due to their well-established food and beverage industries and advanced infrastructure for packaging production. These cities have significant consumption of canned beverages and processed food, with a rising demand for eco-friendly packaging options. Moreover, these urban centers serve as hubs for multinational companies, which further enhances the demand for premium packaging solutions like metal cans in various consumer goods industries.

MEA Metal Cans Market Segmentation

By Product Type: The MEA Metal Cans Market is segmented by product type into beverage cans, food cans, and aerosol cans. In 2023, beverage cans held the dominant market share. This is largely due to the rising consumption of carbonated soft drinks and energy drinks, which are primarily packaged in metal cans. Beverage companies prefer metal cans due to their ability to preserve the quality and flavor of drinks while being lightweight and easy to transport. The popularity of aluminum cans in this segment is further boosted by their recyclability, making them a preferred choice among consumers and companies.

By Material Type: By material type, the market is segmented into aluminium and steel. In 2023, aluminium held a dominant market share due to its superior recyclability and lightweight properties. Aluminium cans are the preferred choice for packaging beverages because they offer a high barrier against oxygen and light, which helps in maintaining the freshness of the contents for a longer time. Additionally, the environmental benefits associated with recycling aluminum make it the material of choice for both manufacturers and consumers, aligning with the region's growing focus on sustainability.

By Region: The MEA Metal Cans Market is segmented into Israel, the United Arab Emirates, Jordan, Morocco, South Africa, and the Rest of MEA. In 2023, the United Arab Emirates dominated the regional market. This is driven by the country's large-scale beverage production and a strong focus on sustainability initiatives, including the adoption of recyclable materials. Israel followed with second dominant market share, benefiting from advanced recycling infrastructure and strong demand in the food and beverage sectors.

MEA Metal Cans Market Competitive Landscape

• Ball Corporation: In 2024, Ball Corporation announced plans to increase its aluminum can production capacity in Egypt with an investment of USD 100 million. This expansion is part of its strategy to meet the rising demand for recyclable beverage packaging in the African region. In 2023, the company also opened a new manufacturing facility in South Africa to cater to the growing local demand for canned beverages and food.
• Crown Holdings Inc.: Crown Holdings expanded its production capabilities in Saudi Arabia by investing USD 150 million in 2023 to increase its output of metal beverage cans. This facility is expected to produce more than 1.5 billion cans annually, catering to the booming demand for energy drinks and soft beverages in the GCC region. In 2024, the company announced the launch of new lightweight aluminum cans, which are expected to reduce material usage by 10%.

MEA Metal Cans Market Analysis

Growth Drivers

• Increased Consumption of Canned Beverages and Food: The MEA Metal Cans Market has experienced a significant boost in demand driven by the increasing consumption of canned beverages, particularly in the Gulf Cooperation Council (GCC) countries. As of 2024, Saudi Arabia alone is projected to consume 8.2 billion liters of beverages annually, of which approximately 30% will be packaged in metal cans. Similarly, the processed food industry in countries like the UAE and Egypt is adopting metal cans for their durability and preservation capabilities. This surge is supported by the expanding middle-class population and their growing preference for convenient food and beverage options.
• Government-Led Sustainability Campaigns: In 2023, the UAE government launched its Zero Waste by 2050 initiative, mandating the reduction of plastic packaging and promoting the use of recyclable materials like metal cans. Saudi Arabias Vision 2030 also emphasizes sustainability, aiming to increase the recycling rate of aluminum cans from 7,000 tons annually to over 10,000 tons by 2025. These regulatory frameworks are creating a favorable environment for the metal cans market, as businesses increasingly switch to eco-friendly packaging to align with government directives.
• Growth in Recycling Infrastructure: Africa, particularly South Africa and Nigeria, has made substantial investments in recycling infrastructure, further boosting the demand for metal cans. In 2024, South Africa is expected to recycle over 120,000 tons of aluminum, with a significant portion coming from metal cans. This robust recycling ecosystem allows manufacturers to reduce production costs and meet the rising demand for sustainable products. The availability of advanced recycling facilities across the region also supports the growing preference for metal packaging in sectors such as beverages, food, and household goods.

Challenges

• High Production Costs Due to Aluminum Price Volatility: One of the major challenges faced by the MEA Metal Cans Market is the fluctuating cost of raw materials, particularly aluminum. In 2024, the average price of aluminum in the global market is projected to be USD 2,200 per ton, significantly affecting the profitability of manufacturers in the region. These price fluctuations often result from global supply chain disruptions and trade policies. The instability in raw material costs forces manufacturers to either absorb the cost or pass it on to consumers, thereby reducing the competitiveness of metal cans compared to other packaging materials.
• Limited Recycling Infrastructure in Certain African Markets: While some parts of Africa, like South Africa, have advanced recycling capabilities, other regions, such as West Africa, lag behind. In 2023, less than 15% of aluminum cans were recycled in countries like Nigeria and Kenya, highlighting the infrastructure gap. This lack of proper recycling facilities increases the cost of raw materials, as manufacturers need to import or process aluminum. Moreover, insufficient governmental support in these countries hampers the development of recycling initiatives, making it difficult for the metal cans market to grow sustainably in certain parts of Africa.

Government Initiatives

• Saudi Green Initiative (2023): Saudi Arabias Green Initiative, part of Vision 2030, was launched in 2023 to promote the use of recyclable materials in packaging. The initiative targets a 15% reduction in plastic waste by 2025 and has introduced policies to increase the recycling of metal cans. As of 2024, the Saudi government has invested USD 500 million in recycling plants across the kingdom, which will process over 10,000 tons of aluminum annually. These policies provide significant support for the metal cans industry by encouraging companies to adopt more sustainable packaging solutions.
• UAEs Circular Economy Policy (2023) In 2023, the UAE introduced its Circular Economy Policy, which includes specific mandates for the packaging industry to increase the use of recyclable materials like aluminum and steel. This initiative aims to achieve a 75% recycling rate for metal cans by 2025. The government has allocated USD 150 million to upgrade recycling facilities and provide incentives for companies switching to eco-friendly packaging materials. This policy plays a pivotal role in the growth of the metal cans market by creating a favorable regulatory environment.

MEA Metal Cans Market Future Outlook

The MEA Metal Cans Market is expected to witness steady growth over the next five years, driven by several key factors. The demand for recyclable and sustainable packaging solutions is likely to remain a significant growth driver, particularly as governments in the region continue to implement stricter environmental regulations. The beverage and food processing industries are expected to adopt more metal cans in their packaging due to the materials recyclability, durability, and ability to preserve product quality. Additionally, investments in recycling infrastructure across Africa and the Middle East will support the markets expansion by reducing production costs and meeting consumer demand for eco-friendly packaging.

Future Trends

• Expansion of Aluminum Can Recycling Facilities Over the next five years, the MEA region is expected to see a significant expansion in recycling facilities, particularly for aluminum cans. Governments and private companies will invest in advanced technologies to increase the efficiency of recycling processes. This will reduce production costs and make metal cans a more attractive option for manufacturers across various industries, including beverages and food.
• Growth in E-commerce Packaging Solutions As e-commerce continues to grow in the MEA region, there will be an increasing demand for durable and protective packaging materials like metal cans. The robust nature of metal cans makes them an ideal choice for shipping beverages and food products, ensuring product integrity during transportation. This trend is expected to drive the adoption of metal cans in the packaging industry as companies seek more sustainable and reliable packaging options.