Global demand for wholesale aluminum cans in the beverage packaging market has kept on rising. The market size was at 62.4 billion US dollars in 2023 and is expanding at a compound annual growth rate (CAGR) of 5.8%. Let us take the example of the US market. The market leaders, Ball Corporation and Crown Holdings, have a combined share of approximately 65% of the market space. Their MOQ is between 500,000 and 1 million pieces, priced at around 0.08 to 0.12 US dollars per piece. The shipping cost is equivalent to 15%-20% of the entire procurement cost. Chinese suppliers, for example COFCO Packaging, ORG Technology, have to capture the market at cheap price ($0.05- $0.07 per piece); however, that comes with paying extra 10%-25% tariffs besides going through 30-45 shipping cycle. According to one study, Yuanqispace was able to get 120 million aluminum cans directly from Orekin in 2022 at cheaper cost around 18% over the year. But it had to coordinate its supply chain six months in advance to accommodate transportation variations.
From the perspective of technical parameters, the standard 330-milliliter aluminum can weighs approximately 13 grams. Compressive strength needs to be as much as 90 psi (pounds per square inch), and coating thickness needs to be 3-5 microns to ensure the shelf life of the beverage (18-24 months). For supply chain innovation, AB InBev launched the “Recyclable Aluminum Can Closed-loop Program” in 2021. It used laser engraving technology to reduce label ink usage by 30%, increase the percentage of recycled aluminum to 73%, and reduce energy usage per ton of recycled aluminum production by 95% compared to primary aluminum. These technologies enable consumers to boost their ESG (Environmental, Social and Governance) scores by 12% to 15%, in line with the EU’s Green Deal’s mandatory target of a 70% recycling level of packaging material by 2030.
The procurement policy needs to be accompanied by local policies and cost models. For instance, in the European market due to the pilot carbon tariff (CBAM), the cost of imported cans of aluminum will increase by 8%-12%, while local suppliers such as Trivium Packaging reduced the carbon footprint to 1.2 kg of CO₂ per kilogram of aluminum with hydrogen smelting technology (industry average 4.5 kilograms). US consumers can use the tax credit for local production under the Inflation Reduction Act to purchase items produced by the Ball Corporation plant in Colorado for a tax credit of $45 per ton of aluminum cans. According to estimates by McKinsey, increasing the radius of supply chains within 500 km saves logistics costs by 28% and shortens delivery times to 7-10 days. For instance, Mexico’s Coca-Cola bottling factory has increased its inventory turnover ratio to a rate of 9.2 times annually (the industry average being 6.5 times) by sourcing aluminum cans locally.
Trends in emerging markets are smart cans of aluminum (with NFC tags embedded) and light designs (reduced below 10 grams). Carlsberg’s “Snap Pack,” launched in 2023, has a design of 6 tanks, reducing plastic usage by 76%. But it is the cost of around $120,000 in terms of custom mold and only be used for major customers ordering 50 million more than that a year. Data from Alibaba International Station indicate that in 2022 the starting point for minimum order quantity has been dropped to 100,000 wholesale aluminum cans from previously 500,000 but only with an addition of 40% in terms of flexibility yet the cost per unit rose by 23%. In general, procurement choices have to strike a balance between MOQ, technological flexibility, and local regulations. Top platforms like Thomasnet and Global Sources can offer supplier certifications such as ISO 15378 pharmaceutical packaging standards, and risk-hedging instruments, dropping the rate of procurement mistakes to ±2.5% (±8% for non-platform channels).