February 16, 2025

Sustainable Packaging Material Drives The Growth Of Aluminum Bag Market

Aluminum bags are gaining significant traction as a sustainable packaging material for food, personal care, and pharmaceutical products. Made from lightweight aluminum foil laminated with plastic films, aluminum bags provide excellent moisture and gas barriers while maintaining product freshness for longer durations. They can withstand extreme temperatures, offer high burst strength and puncture resistance. Aluminum bags are 100% recyclable and have a low carbon footprint compared to single-use plastic bags. Their shiny and glossy surface appeals to brand owners for enhanced visual appeal on retail shelves.

The global Aluminum Bag Market is estimated to be valued at US$ 9.83 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the aluminum bag market is the increasing demand from the food industry. Aluminum bags are highly preferred for packaging various food products like snacks, coffee, pet food etc. due to their excellent barrier properties. They help extend the shelf life of foods by preventing transmission of moisture, oxygen and other gases. Another key trend is the growing focus on sustainable packaging globally. Stringent regulations banning single-use plastic are propelling companies to shift towards eco-friendly aluminum bags. Lightweight and recyclable nature of aluminum also makes it cost-effective for brand owners in the long run. Major brands are widely promoting their products in aluminum bags to showcase their commitment towards environment protection. Rising health-consciousness and busy lifestyles have also boosted the on-the-go consumption trends, driving the use of aluminum bags for packaging convenient snack foods.
Porter’s Analysis

Threat of new entrants: New entrants face high costs to set up operations and gain customer trust in this market dominated by established players. However, firms can leverage contract manufacturing to enter new markets.

Bargaining power of buyers: Large buyers have strong bargaining power due to the availability of substitutes and their ability to exert pressure on prices. Small buyers have less influence.

Bargaining power of suppliers: A few large players globally dominate the supply of raw materials like plastic resin and aluminum foil. This gives them pricing power over bag manufacturers.

Threat of new substitutes: Alternatives like plastic and paper bags pose a constant threat. However, aluminum bags have advantages of strength, barrier properties, and sustainability that make substitutes less attractive.

Competitive rivalry: The market features many mid-sized firms competing globally and locally. Companies differentiate through branding, technology, customization, and supply chain integration to gain customer loyalty.

Key Takeaways

The global aluminum bag market is expected to witness high growth over the forecast period driven by increasing demand from food and beverage packaging. Food manufacturers prefer aluminum bags due to properties like strength, durability and barrier against moisture, oxygen and light that help maintain freshness.

Regional analysis: North America currently dominates the global market owing to strong demand from packaging sectors in the United States and Canada. Asia Pacific is anticipated to be the fastest growing market with China and India emerging as major consumers backed by expanding retail sectors and population growth. The markets in Western Europe and Latin America are also expected to grow at a steady pace over the coming years.

Key players: Key players operating in the aluminum bag market include Amcor, Mondi, Sonoco, Bemis, Novolex, Berry Global, Pactiv, ProAmpac, Coveris, Huhtamaki, Technovin, Flexopack, Celplast, UltraSource, Printpack, Bryce, Genpak, Astrapak, Plus Packaging, and Presto. The market remains fragmented with private label offerings from retailers gaining ground. Major brands are investing in sustainable product innovation and supply chain partnerships to strengthen market positions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

2.            We have leveraged AI tools to mine information and compile it

Ravina
+ posts

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

View all posts by Ravina Pandya →