“Aluminum beverage cans are an in-demand packaging product type,” says Robert Budway, president of Can Manufacturers Institute (CMI), Washington, D.C. “Aluminum beverage cans offer an innovative design, lightweight packaging, quality performance, and it’s widely accepted for recycling, making it a circular product solution. 

“In recent years, aluminum beverage can manufacturers have seen increased demand for environmentally friendly containers by current and new beverage brands,” Budway continues. “Beverage cans are in-demand and represent roughly 78% of the worldwide metal can market projected to grow at a compound annual growth rate of 2.3% from 2024-2032. Long-standing customers are moving away from plastic bottles and other packaging substrates to cans due to environmental and sustainability reasons.”

Jared Smith, executive vice president of commercial and business development at Los Angeles-based Perfect Hydration Alkaline Water, also notes that aluminum packaging has seen steady growth — with some beverage categories and channels taking off. 

“I’m seeing a significant increase in foodservice environments like fast casual and airports where premium, innovative products are often sold,” he says. “But we’re also seeing more aluminum pop into traditional retail. For Perfect Hydration, our total points of distribution for our aluminum packages, including our 16.9-ounce cans and 16-ounce aluminum bottles, are up 107% [year-over-year] (YoY), according to Circana.” 

Jody Bogle, vice president of consumer relations at ElementAL Wines, a brand of the Bogle Family Wine Collection, Clarksburg, Calif., highlights how the company sees aluminum packaging more as an opportunity than just a demand. 

“The wine industry has long known that glass bottles contribute significantly to wine’s carbon footprint, so we wanted to lead the charge with a bold, innovative approach,” she says. “While sustainability efforts in the industry have primarily focused on vineyards and wineries, packaging changes have been much slower and more incremental. By developing an aluminum bottle, we’re able to create a real, impactful shift — our ElementAL bottle is 80% lighter than the average glass bottle, offering a more sustainable solution without compromising on quality or taste.”

Further, Bogle notes that the trend toward lightweighting has been growing, but this shift has been incremental — until more recently.

“With ElementAL, we’re making a bold move by leading the charge in a radical change,” she says. “The growing popularity of canned beverages has shown that consumers are increasingly open to the idea of wine in alternative packaging, especially as it solves issues like breakability and weight. 

“Additionally, the rise of single-serve and smaller formats highlights the demand for convenience and practicality — people want something that’s easy to carry and won’t break,” Bogle continues. “We’re pushing this trend even further by introducing a 750-ml format in the shape of a traditional wine bottle, breaking new ground in the aluminum packaging space.”

Perfect Hydration’s Smith asserts that government, corporate, and consumer demand for sustainable products are driving a large portion of the aluminum packaging market.

“Lake Tahoe recently banned single-use plastics, and as a result, the area became a vacuum for Perfect Hydration aluminum bottles and cans,” Smith says. “Aluminum is also great for innovation — especially for brands that need small production runs — because it’s easy to source standard-sized cans, which can be sleeved in small quantities for reasonable prices.

“Consumers and retailers also like aluminum for its convenience — it’s durable, relatively lightweight, easy to ship and store, and easy to recycle again and again,” he continues.

CMI’s Budaway says that aluminum packaging leads the way in what matters to consumers and beverage companies, noting that the packaging’s attributes lend itself to consumers’ taste and sensory experiences.

“Consumer’s experience with the taste of a beverage is paramount,” he says. “To ensure that perfect experience, beverage companies know that oxygen and light are their drink’s worst enemy, and the aluminum can creates a barrier from these issues.

“Aluminum cans also hit upon the senses,” he continues. “From the moment a consumer sees the 360-degree graphics to that particular sound a can makes when cracked open — it’s a packaging product that delivers an experience with cold, refreshing taste.”  

Additionally, Budway notes that aluminum packaging can be a big money-saver when it comes to shipping and logistics — given that the packaging is lightweight.

“High-speed filling lines, relatively low defect rejections, and inventory efficiencies allow for more products to be shipped and placed on store shelves with minimal product loss,” he explains.

Expansive opportunities

With the aluminum packaging market extending beyond traditional can formats to include cups and wine bottles, experts highlight some opportunities for these segments to expand.

“Younger generations are fueling the demand for aluminum beverage cans,” CMI’s Budaway says. “It’s one of the preferred packaging types for younger generations and expected to significantly boost the beverage can market in the years ahead.”

ElementAL Wines’ Bogle notes that, with aluminum wine bottles still in its early stages, there is opportunity in bringing the traditions of fine wine into the world of alternative packaging. 

“While certain occasions — like enjoying wine at the beach or poolside — are clearly perfect for a lightweight, shatterproof bottle, we believe ElementAL is just as fitting for more traditional settings, like a fine dinner on a white tablecloth,” she says. “We’re thrilled to see other brands, like Currently Wine Co. and The Woodsman Selection, adopting our bottle, helping to expand its reach and make it available to even more consumers. The potential for growth in this space is just beginning, and we’re eager to be a part of it.”

Perfect Hydration’s Smith notes that any beverage segment has the ability to put their brand into aluminum packaging; however, he says that the hurdle for new categories is making aluminum cost effective and getting consumers to adopt.

“When compared to plastic like PET-1, aluminum is more expensive unless purchase quantities are massive,” Smith explains. “There are also fewer sizes and forms available in aluminum than PET and glass. For instance, you don’t see large vessel sizes in aluminum.

“Some categories like spirits, water, juice and isotonics have historically relied on the consumer being able to see the liquid through the packaging, which isn’t possible with aluminum,” he continues. “So when these categories innovate, they have to try a bit harder to educate the consumer on what’s inside the ‘bottle’ to build understanding and trust.” 

When it comes to supply constraints affecting the market, Smith notes that during the COVID-19 pandemic aluminum supply tightened as demand increased, but it has since leveled, mostly keeping up with demand.

“Now, new tariffs on aluminum imports will increase prices and decrease available supply,” he says.

CMI’s Budway notes that the aluminum beverage can manufacturing industry has partnered with its dedicated supply chain to expand material sourcing to meet robust demand. 

“CMI members are opening new facilities and aluminum beverage can production has been growing each year,” he says. “Each new can making facility costs approximately $200 million to construct and adding additional lines in existing facilities is nearly $80 million per location.  

“Trade issues regarding aluminum is also another area we’re watching, for example, there’s a significant amount of used beverage cans (UBCs) that are exported from U.S. scrap yards and these UBC exports could be a trade issue if it hinders the ability of American aluminum mills to source domestic recycled material,” Budway continues. 

ElementAL Wines’ Bogle says that when working with something as innovative as aluminum wine bottles, it’s natural to encounter some challenges at the start. 

“For example, when we looked at our bottling line, we realized we had to create custom parts specifically for the ElementAL program,” she explains. “Given that there aren’t as many suppliers in this space compared to glass, we’ve experienced longer lead times. However, we’re committed to working through these growing pains, and with each step forward, we’re helping to expand the infrastructure and supplier network, ultimately making the process smoother for everyone. We’re focused on overcoming these obstacles and continuing to make great progress.”

Meeting sustainability goals

Given that sustainability is a major factor for brands embracing aluminum packaging, experts highlight how recycling goals are affecting the market.

CMI’s Budway explains how the industry is working toward improving the aluminum beverage can recycling rate — not only to benefit the environment, but the economy as well.

“As aluminum beverage cans are recycled they facilitate domestic manufacturing and jobs — two can sheet production facilities are being constructed, one in Alabama and another in Mississippi. Part of this progress includes increasing capacity and recycled content,” he says. “Already, there are nearly 90,000 aluminum beverage cans from U.S. consumers recycled every minute in the United States.

“These cans provide a domestic supply of a critical material, aluminum, creating resilient supply chains and less dependency on foreign imports,” Budway continues. “This high amount of recycling also translates into industry-leading recycling rates and average amounts of recycled content, which enables beverage brands to meet their packaging sustainability goals.”

Budway adds that greater coordinated action and increased long-term strategic investments are necessary to raise the aluminum beverage can recycling rate.

“CMI’s recycling primer and roadmap demonstrates how we can achieve our targets of a 70% recycling rate by 2030, 80% by 2040, and 90% by 2050. We recognize reaching these targets will be a challenge that requires tailored strategies for our unique and diverse political environment,” he says. “We need sound recycling policies, such as comprehensive extended producer responsibility laws that include recycling refunds (deposit return systems), to help improve recovery of beverage containers. However, not every local jurisdiction will consider these frameworks.

“CMI members are also focused on improving household and away-from-home recycling access, increasing consumer education on the significant impact of recycling aluminum cans, and developing more accurate beverage can sortation at recycling centers to help reach our goals,” Budway continues.

ElementAL Wines’ Bogle notes that sustainability and recycling goals are creating significant opportunities for the aluminum packaging market to align with larger corporate initiatives.

“Major retailers like Target and Walmart are committing to offering more eco-friendly products and reducing their environmental impact throughout their entire supply chain,” Bogle says. “As part of these efforts, they’ve set targets for a certain percentage of the products they offer in their stores to align with these sustainability goals, which is driving demand for alternative packaging like aluminum.

“Additionally, events are increasingly adopting zero-waste policies, further pushing the need for non-glass and non-plastic packaging solutions,” she continues. “Consumers themselves are also becoming more conscious of their environmental footprint and are actively seeking ways to reduce their waste, making sustainable packaging a key factor in their purchasing decisions.”

As far as which beverage categories have increased their aluminum packaging usage in the past few years, Bogle points to water brands as leading the way in adopting aluminum packaging.

“But it’s not just water — any beverage brand that’s looking to move away from single-use plastic is increasingly turning to aluminum,” she says. “Whether it’s energy drinks, teas, or even wine, the push for more eco-friendly packaging is growing across many categories.

“Aluminum offers a great solution: it’s lightweight, recyclable, and aligns with the increasing demand for sustainability in beverage packaging,” Bogle concludes.