According to PMMI’s 2024 State of the Industry US Packaging Machinery Report, packaging machinery manufacturers are actively innovating to support aluminium and other eco-friendly materials, aiming to capitalise on the growing demand for sustainable solutions.
This shift comes as sustainability becomes a defining force in reshaping the packaging industry. While the US continues to have less stringent packaging regulations than the European Union, leading companies across North America are increasingly embracing aluminium-based sustainable packaging solutions.
Recognised for its recyclability, light weight, and relatively low environmental footprint compared to plastic, aluminium is playing a pivotal role as brands and manufacturers respond to mounting regulatory pressure and evolving consumer preferences.
From plastic to aluminium: regulatory drivers and consumer preferences
The decline of single-use plastics (SUPs) is gaining momentum across North America, driven largely by Extended Producer Responsibility (EPR) policies in select US states, such as Maine’s 2021 EPR law, which requires packaging producers to fund recycling and waste management efforts.
This regulatory environment encourages companies to reduce plastic use and transition to recyclable alternatives. Consumer packaged goods giants like Gillette have already responded by switching from plastic blister packs to recyclable paperboard and aluminium packaging for products such as razors, reflecting rising consumer demand for greener options.
In the beverage sector, aluminium and glass are increasingly preferred over plastics due to their recyclability.
However, while glass is recyclable, it faces significant recycling inefficiencies and can contribute to higher carbon emissions because of its weight and processing challenges.
Aluminium stands out as a superior alternative; it boasts a high recycling rate exceeding 70 per cent in North America, and recycling aluminium consumes just 5 per cent of the energy required to produce primary metal. These advantages, combined with its durability and light weight, make aluminium packages highly attractive for brands aiming to reduce their carbon footprint and meet sustainability goals.
Robust aluminium demand across the US, UK, and Canada fuels packaging industry growth
North America’s aluminium market reflects the increasing importance of sustainable packaging. The Aluminum Association reported a 3.4 per cent year-over-year growth in demand for aluminium in 2024 across the US and Canada, with total consumption nearing 27 billion pounds (about 12.25 million metric tons). In 2023, the US aluminium market was valued at approximately USD 12.47 billion and is forecasted to grow at a compound annual growth rate (CAGR) of 4.6 per cent through 2030. Packaging formats such as aluminium beverage cans and foil are significant growth drivers as manufacturers aim to comply with emerging regulations and satisfy eco-conscious consumers.
Aluminium’s circular economy credentials underpin much of this growth. Its recycling rates dwarf those of plastics, enabling substantial energy savings and reduced greenhouse gas emissions. The aluminium foil packaging market in the U.S. alone was valued at roughly USD 5.23 billion in 2023, with projections estimating it will reach about USD 9 billion by 2035. Globally, the aluminium foil sector was valued at around USD 30.5 billion in 2024 and is expected to expand at a 4-5 per cent CAGR over the next decade, further highlighting aluminium’s wide acceptance in food, beverage, and consumer goods packaging.
Aluminium’s growth is largely supported by its high recycling rates, which far exceed those of plastics and help reduce energy use and emissions. In the US, the aluminium foil packaging market was valued at about USD 5.23 billion in 2023 and is expected to reach nearly USD 9 billion by 2035. Globally, the market stood at around USD 30.5 billion in 2024 and is projected to grow at 4–5 per cent annually over the next decade, reflecting steady demand across food, beverage, and consumer goods sectors.
Meanwhile, the UK market is experiencing similar trends, driven by government sustainability initiatives and increasing consumer preference for recyclable aluminium packaging with lower lifecycle emissions. Although exact market size figures for 2023–24 are limited, the UK follows broader European moves to replace plastics with aluminium and other sustainable materials, especially in the beverage and personal care sectors.
Canada complements this growth as a leading aluminium producer and recycler with high recycling rates often exceeding 70 per cent. Its policy landscape increasingly supports circular economy principles, encouraging producers to adopt aluminium packaging solutions that align with environmental goals and strengthen North American supply chains.
Note: To feature your brand and share insights, contribute an article or interview in our forthcoming e-magazine "American ALuminium Industry: The Path Forward".
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