Metal packaging – Data 2015

An important segment of the packaging market, steel and aluminium packaging are consistently characterized by innovation that enhances performance. Data and facts on the sector.

Unparalleled robustness, total barrier against external agents (such as light, which alters organoleptic properties) for enhanced preservability and perfect recyclability: these are the strengths of metal packaging.
Over the years, metal packaging has undergone some particularly significant innovations: production of cans from two pieces rather than three, average weight reduction relative to performance, and enhanced graphics.
Various closure types are used with this packaging type (corona caps, twist-off caps, screw-on caps and easy peel lids).
Metal packaging is used for a wide range of products, spanning food products (food and beverages) as well as non-food, especially chemical products, cosmetics/perfumes and pharmaceuticals.

Size and characteristics of the Italian market
The cost of aluminium is greater than that of steel, and, for this reason, it is not used to produce containers with capacities exceeding 0.5 kg.
By contrast, aluminium is predominant in the production of tubs, bottle caps, wrapping film, etc.
According to the latest official numbers calculated by Istituto Italiano Imballaggio, the total balance of the Italian metal packaging industry (steel + aluminium) in 2014 broke down as follows: 958 t/000 produced, 329 t/000 exports, 47 t/000 imports and 670 t/000 apparent consumption.
According to an initial evaluation by the Istituto, production is estimated to have grown by approximately 3% in 2015, driven by strong domestic demand as well as exports.

Steel packaging
Reflecting a persistent economic crisis, Italian production of steel packaging has seen a negative average annual growth of -2.7% since 2013, measured by quantity.
Since 2014, production has recovered progressively: +3% in 2014, followed by a consolidation of the recovery around 2.6-2.8% in 2015 (preliminary year-end data). The 2015 performance is attributed mainly to exports (3-3.5%) and domestic consumption growth estimated at 2.5-2.7%.
There are two packaging types in this segment: tinplate packaging and high capacity steel drums (50 l). 

Tinplate. The total amount of tinplate packaging produced in 2014 was 663 t/000 (up 2% compared to 2013). Growth in 2015 is estimated at +2.5%.
Various packaging types fall under this category, the most significant of which, in quantitative terms, are open tops, used to package food products (41% of total, 53% of which tomato products).
Equally important is the general line (27%), packaging destined for the petrochemical industry and used to package paints, lubricants, inks, etc.
Food oils (olive and seed oils) account for approximately 3% of tinplate packaging production.
Closures (corona and other caps) represent 14.6%, reaffirming the sector’s traditional heavy orientation toward exports (60-70% of production on average).
Another important type is spray cans, with an 18% share. This figure is basically stable, but production is increasingly reliant on exports because one of the main outlet sectors - cosmetics - is moving toward aluminium solutions.
The remaining 6.4% of tinplate packaging is made up of decorated tin boxes (for biscuits, chocolates, tennis balls, etc.) and semi-processed goods (lithograph sheets and covers for export).

High capacity steel drums Production in 2014 reached 102 t/000, a growth of +9.7%, mainly driven by 9% growth in exports.
According to preliminary data, 2015 should have seen additional growth of about 2-3% (exports remain a key factor).
There are essentially no imports of this packaging type.
About 70% of these drums are used in the petrochemical industry, while the remaining 30% are used to ship semi-processed food products (such as food oil).
Capacities vary from 100 to 300 kg, but the most widespread formats are those between 185 and 250 l, with a clear predominance of 200 liter drums.
The drums are made from thick steel plate (more than 0.49 mm) with no tinning but are protected by internal and external varnish.

Aluminium packaging
Aluminium used for packaging includes can stock (for beverages), foil stock (thin foil and caps), can body stock (for food) and slugs (spray cans).
These products are made using an extreme variety of alloys, which vary according to production process and use.
According to “Packaging in numbers”, the sector’s turnover grew by 8.6% in 2014, while its production by quantity grew by 8.7%.
As for foreign trade, also in quantitative terms, exports grew by 8% while imports grew by 4.7%. Domestic demand grew by 6%.
Preliminary year-end data on 2015 shows production growth of 5-7%, driven by rising exports (approximately 9-11%) and domestic demand up 3-4%.
The average annual growth rate of the aluminium packaging sector over the last decade was 3% in terms of activity by weight.
Over the years, the development of special alloys has enabled the creation of drastically reduced thickness, giving aluminium more possibilities to expand within the packaging sector, since it can be used to produce both containers and flexible packaging for converting.
The mix of the various types of aluminium laminates used in the production of packaging is as follows: thin sheet (less than 200 micron), can stock and slugs.
The current structure of aluminium packaging production breaks down as follows (in terms of tonnes produced):
- containers 31.8% (cans for beverages, tins for food products, spray cans and flexible tubes);
- closures 10.9%
- tubs for food products 10%
- thin wrapping foil 5%
- foil for converting 40%
- other 2.3%
In terms of production, 66% of containers are cans for beverages, while 16% are tins for food products (fish, meat, pet food, etc.), 17% are for cosmetics and pharmaceuticals, and the remaining 1% is made up of various other types.            
                               
Plinio Iascone
Istituto Italiano Imballaggio