Aluminum packaging: Adaptation and diversification key to sustainability challenge

25 May 2018 --- Demand for increasingly higher levels of sustainability and cost-effectiveness in product packaging is a challenge the aluminum industry is able to embrace because of the innate qualities of the material. In theory, aluminum can be recycled countless times without loss of quality and has excellent barrier properties capable of extending shelf life, thereby countering food waste.

That is not to say that aluminum packaging is without modern day challenges: the decreasing popularity of soda drinks which are packaged in cans – aluminum’s second-biggest product market after automotive – is necessitating a diversification of aluminum packaging solutions which can accommodate different types of food and beverage products. Meanwhile, the US’s proposed 10 percent aluminum tariffs raise questions about the price of the raw material and the viability of the global value chain.

Soda consumption down, canned beer on the rise

“Consumers are drinking less soda: the can market has declined somewhat from peak shipments of can sheet in the mid-1990s of around 4.3 billion pounds to around 3.7 billion pounds today,” Matt Meenan, Senior Director of Public Affairs at The Aluminum Association, US, tells PackagingInsights.

However, aluminum packaging is experiencing growth in other beverage markets. “Craft brewers love aluminum cans – from virtually no market share a decade ago, today, around 500 small brewers are canning 2,000 different beers,” says Meenan. “Beer is the main growth market for aluminum cans, which have risen from about 60 percent of the market a decade ago to around 70 percent of the market today (while glass has declined). We are also seeing growth in canned sparkling water, for example, LaCroix.”

LaCroix Sparkling Water serves as a sodium-free, healthy alternative to the many artificially sweetened beverages in the market. The can packaging is 100 percent recyclable and perpetually sustainable.

Progress, but recycling remains a challenge
Aluminum cans are “the most sustainable, convenient and versatile container on the market today,” says Meenan. “They are by far the most recycled beverage container, with recycling rates greatly exceeding glass or plastic. The high value of aluminum means that cans effectively subsidize the recycling of lower value materials, making municipal recycling programs possible. And closed-loop recycling means that aluminum cans contain 70 percent recycled content, more than three times the amount of glass or plastic bottles. Making a can from recycled aluminum saves 92 percent of the energy required to make a new can.”

Despite this, Meenan still regards recycling uptake of aluminum cans as a major challenge, especially in the US. “Today our consumer recycling rate of aluminum cans is around 50 percent – higher than completive packaging materials but still far lower than it should be. To put this in perspective, in 2016 44.5 billion cans – US $760 million worth of aluminum – ended up in a landfill, a major loss to the economy and the environment.”

The Aluminum Association engages in educational activities and advocacy efforts to drive increased recycling of aluminum across the supply chain. Several member companies also participate in the Recycling Partnership, a multi-material coalition of US businesses active with local municipalities to improve residential curbside recycling programs and infrastructure.

Protective barrier properties a key quality
Meanwhile, Hermat Krashak, Product Director at Tetro Fino Aseptic, a division of Tetra Pak, identifies the protective barrier qualities of aluminum packaging as the material’s main benefit. “The aluminum layer inside our aseptic packages - which is eight times thinner than a human hair - provides vital protection from oxygen and light, keeping perishable food safe without refrigeration and preservatives for up to 12 months,” he tells PackagingInsights.

“Our most recent aseptic packaging is the Tetra Fino Aseptic 100 Ultra MiM. The package offers an opportunity for customers to produce liquid dairy and juice drinks using their existing production processes, and market them as ice creams and frozen products.”

Want Want, a leading food company in China, is the first company to trial this product. The new package will be available from 2018 in the Greater Middle East, Europe and Asia.

“Aluminum is an important component in the aseptic package in terms of protecting food safety,” says Krashak, “Although currently it is not possible to produce it with recycled materials.”

Innovation in design 
In addition to aluminum’s protective barrier qualities, and its flexibility in combination with other packaging such as plastics and paperboard, the material is also able to facilitate innovation in design. Metal packaging giant, Ball Corporation, is set to unveil pioneering new printing technology capable of revitalizing end-of-can brand-appeal.

“Ball's Cameo End Printing delivers both branding advantages for our customers, and functional benefits for consumers,” says Jay Billings, Vice President for Ball's beverage packaging North & Central America business. “For our customers, Cameo extends the can's 360-degree billboard to the top of the package, further increasing brand visibility and offering exciting new possibilities for contests, special promotions and limited release packaging.”

Likewise, Ardagh group recently celebrated the recognition of its world-first decoration technique, “Matte and Mirror Impact,” which contributed to the Espresso Monster Coffee Can nabbing first place, in the Decorative/Specialty category, at the Euro CanTech awards.

“‘Matte & Mirror Impact,’ combines the trending combination of matte and glossy surfaces. A new ink compound is responsible for creating an eye-catching beverage packaging. The new finishing comprises a special admixture that can be used with any printable color and creates matte effects on the otherwise glossy can surface,” Johanna Gasson, Communications Manager at Ardagh group, tells PackagingInsights.

US tariffs threaten harmony of the value chain
Despite innovations in aluminum’s design capabilities, the availability of the material in its raw form remains a challenge and one that looks set to intensify in light of US President, Donald Trump’s, proposed 10 percent tariffs on aluminum imports.

The Beer Institute has estimated that over half the beer produced in the US is packaged in aluminum cans or bottles and that the proposed 10 percent tariff would hit the US beverage industry with an additional US $347.7 million tax.

Molson Coors – one of the world’s largest brewers by volume – was quick to vocalize concerns around potential job losses and price rises. In a statement, the company said: “There simply isn't enough supply to satisfy the demands of American beverage makers.’’

“Like most brewers, we are selling an increasing amount of our beers in aluminum cans and this action will cause aluminum prices to rise and is likely to lead to job losses across the beer industry.”

More recently, The Whitehouse announced a one-month exemption of Europe from the 10 percent tariff. The European Aluminum association released a statement expressing regret at the decision: “While the industry was requesting a permanent exclusion of tariffs, this short temporary extension provides no relief to the industry, which is already in a vulnerable state due to unsustainable increase of overcapacity in China in both the primary and semi-fabricated aluminum sectors.”

“Unfortunately, the future of our strongly interlinked transatlantic value chains is still clouded in uncertainty. Our industry needs stability to fully benefit from the growing demand for aluminum for strategic applications in packaging, mobility, construction and the electrical sector,” comments Gerd Götz, Director General.

Global packaging suppliers understandably have strategies in place to mitigate the risk of fluctuating raw aluminum availability and costs. “The way we manage our supply chain means disruptions that can adversely affect the price and sales volumes, and result in unexpected costs, are minimized,” Melinda de Boer of Amcor tells PackagingInsights. “Our thorough supplier due diligence and risk management and multi-sourcing strategy for the supply of raw materials means we have a reliable supply chain, across the globe.”

Aluminum packaging faces challenges by way of decreased soda consumption, international tariffs and increasingly demanding sustainability goals, but there is evidence of innovation and structuring within the industry to manage these pressures. The innate qualities of aluminum in terms of its recyclability, potential for design/branding innovation, and protective barrier properties provide reassurances for the future of the material in the face of modern consumer demands.

By Joshua Poole