Crushing cans: Plastic containers will continue to pose a competitive threat in key markets

Revenue for the Metal Can and Container Manufacturing industry has declined over the five years to 2018, due to weakened downstream demand, volatile aluminum prices and competition from substitute products. Moving forward, the industry is forecast to continue to decline due to reduced consumption of sugary soda and an appreciating US dollar. In addition, growth will be constrained by competition from plastic and other nonmetal substitutes. However, the price of aluminum is anticipated to rise over the five years to 2023, alleviating conditions for operators...purchase to read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
29,493
Businesses
483

Industry Threats & Opportunities

  • Competition from substitute products such as plastics exerts competitive pressure on operators
  • Industry revenue is susceptible to fluctuations in raw material prices
  • Rising competition from plastic packaging is expected to reduce demand for aluminum cans
  • Industry Report - Industry Investment Chapter

    The Metal Can and Container Manufacturing industry has a medium level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.20 in capital investment in 2018. During the five-year period to 2018, this ratio has remained unchanged as both the amount of capital and wages have both increased. Most manufacturing companies' capital expenditure programs are designed to take advantage of technological developments to enhance productivity and contain costs. Capital intensity is likely to increase over the next five years as automation begins to play a larger role in the production process. This will ensure that the employees that remain in the industry will mostly be highly skilled employees to operate the machinery. Fur...purchase to read more.

    Additional Insights for the Metal Can & Container Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Metal Can & Container Manufacturing Industry are

  • Effective cost management
  • Close customer relationships
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Per capita soft drink consumption and World price of aluminum in the Metal Can & Container Manufacturing industry impact industry performance..

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    What's in this report

    What is the Metal Can & Container Manufacturing Industry?

    This industry primarily manufactures light metal cans made of aluminum or steel and used as beverage and food containers. Steel shipping barrels, drums, pails and other fabricated steel boxes are also manufactured by this industry and account for a small share of revenue. This industry does not manufacture foil containers or heavy metal containers.

    Industry Products
  • Aluminum cans
  • Steel and tin cans
  • Steel barrels, drums, pails and boxes
  • Other metal containers
  • Industry Activities
  • Aluminum can
  • Steel and tin can
  • Steel pail
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita soft drink consumption
  • World price of aluminum
  • Trade-weighted index
  • Per capita disposable income

  • Current Performance
  • Revenue performance
  • Competitive challenges
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Stagnating demand and substitute competition
  • Aluminum prices and consolidation
  • Table: Metal Can & Container Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Metal Can & Container Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Canned Fruit & Vegetable Processing
  • Seafood Preparation
  • Baking Mix & Prepared Food Production
  • Soda Production
  • Juice Production
  • Breweries
  • Paint Manufacturing

  • Key Selling Industries
  • Aluminum Manufacturing
  • Steel Rolling & Drawing

  • Products & Services
  • Aluminum cans
  • Steel and tin cans
  • Other metal containers
  • Steel barrels, drums, pails and boxes
  • Chart: Metal Can & Container Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Non-alcoholic beverage companies
  • Alcoholic beverage companies
  • Food processors
  • Exports
  • Other packaging companies
  • Chart: Major Market Segmentation for the Metal Can & Container Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Metal Can & Container Manufacturing

  • Basis of Competition
    Internal CompetitionThere are many large national commercial metal food container manufacturers in this industry. As opposed to purchasing containers from can manufacturers, clients can elect to purchase the machinery necessary and acquire the human capital required to produce their own containers.External CompetitionMetal containers contend with competition from glass, paper, plastic and composite containers. Despite this, metal containers are considered superior to alternative materials when the contents are packaged in greater quantities or subject to high temperatures or will be in long-term storage, as it ensures the product maintains its quality. In addition, metal containers are considered more desirable than glass containers because metal containers are more durable.
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal Can & Container Manufacturing Industry

  • Industry Globalization
    Ball Corporation, Silgan Holdings Inc., Crown Holdings Inc.,
  • Table: Ball Corporation - financial performance
  • Table: Silgan Holdings Inc. - financial performance
  • Table: Crown Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Metal Can & Container Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Metal Can & Container Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of aluminum (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    End
  • Made from steel or aluminum, an end is added to a three-piece or two-piece can to seal the container.
  • Pail
  • A bucket
  • Three-Piece Can
  • A can manufactured from flat steel sheets and coated internally and externally, with tops and bottoms and then attached. It is used for food, juice, paint and other products.
  • Two-Piece Can
  • A can made from steel or aluminum in the form of a cup-shaped container with an end added to it. It is used for food, beverages and other nonfood products.
  • What Our Customers Say

    Why buy this report?

    The Metal Can & Container Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Metal Can & Container Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Metal Can & Container Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Metal Can & Container Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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