Aluminum cans have become an incredibly popular packaging choice for new beverages. The global aluminum cans market is expected to reach $87.1 billion in , increasing from $54.3 billion in and growing at a compound annual growth rate (CAGR) of 5.39%. With more consumer demand for eco-friendly, sustainable products ' and the negative publicity for single-use plastic ' aluminum cans have emerged as the preferred choice for many beverage brands. Eco-conscious customers and companies are drawn to the high recyclability and reprocessed properties of aluminum cans.
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According to the Environmental Protection Agency (EPA), aluminum containers and packaging in the United States are recycled at a rate of 34.9%. Of the aluminum containers recycled, more than one-half are beer and beverage containers. Cans also present an advantage in their convenience and portability for an increasingly active, on-the-go lifestyle.
As cans become more popular, there are some important facts to understand when considering if cans are a good choice for your beverage. Your understanding of the can industry, production process and procurement practices can have a significant impact on your beverage costs and time to market. Below are seven things you should know about putting your beverage in cans.
Three major suppliers produce a majority of the cans in the U.S. ' Ball Corporation (headquartered in Colorado), Ardagh Group (headquartered in Dublin) and Crown (headquartered in Pennsylvania).
Ball Corporation, founded in , is North America's earliest and largest manufacturer of recyclable aluminum beverage cans. With more than 100 locations around the world and more than 24,300 employees, they specialize in the manufacture of metal packaging for foods, beverages, technologies and household products. Their net sales were $13.8 billion.
Ardagh Group, founded in , is a global leader in the manufacture of recyclable metal and glass packaging for some of the world's largest brands. The company operates over 60 metal and glass facilities in 16 countries and employs over 20,000 people. Their combined sales are over $10 billion.
Crown Holdings, founded in , specializes in metal/aluminum packaging technology. The company designs, manufactures and sells beverage, food and aerosol packaging, as well as metal closures and specialty packaging products. Crown employs 26,000 people and reported $11.4 billion in sales in . They operate more than 200 facilities across 40 countries.
The size and longevity of these suppliers give them a lot of power when it comes to setting prices, timelines and minimum order quantities (MOQs). While can suppliers accept orders from companies of all sizes, it is easy for a small order from a new company to lose out to a large order from an established company. There are two approaches to secure your position in the competitive market for cans:
Lead times are one of the most important aspects of your beverage business. Not building in adequate lead times can throw off your entire production and launch schedule and increase your costs. Given the short list of can suppliers, your alternative options are limited when lead times fluctuate throughout the year, which they frequently do. One extreme case we've seen is when the lead times for 8.4-oz cans jump from the typical six to eight weeks to 16 weeks within a short timeframe. While lead times are particularly long in the summer months (aka beverage season), new packaging trends or very large orders can push lead times out even more.
To minimize the impact of unexpected lead times on your production timeline, it is important to stay on top of your schedule and keep an extra month of inventory on hand, if possible ' especially during the spring and summer months. It's also vital to keep the lines of communication with your supplier open. When you regularly share updates on your forecasted demand, you give your can supplier the opportunity to alert you to any changes that might impact product availability.
Most can suppliers require a minimum order of a truckload for printed cans. Depending on the size of the can, full truckload (FTL) can vary. For example, the MOQ for a 12-oz standard can is 204,225, or equivalent to 8,509 24pk cases. If you can't meet that minimum, you have the option to order pallets of brite cans from a broker or reseller and decorate them. Some popular can decorating options for brite cans include:
Although this method allows you to order lower quantities of cans, it's important to know that the per-unit cost is generally quite a bit higher than for printed cans. How much higher depends on the type of sleeve and graphics on it, but it will typically cost $3-$5 per case extra to sleeve a can vs. print on it.
In addition to the cans, you are adding on the cost of the sleeves and the sleeve application, as well as the freight to ship cans to your sleever and to your end location. Most of the time, you will have to pay for full truckload freight because can pallets are too high for less than truckload (LTL) carriers to roll up their doors.
In contrast to sleeves, digital printing for cans is a relatively new technology compared to direct printing, which has been around for decades. The higher cost of digitally printed cans is primarily driven by lower minimum order requirements, slower printing speeds, and specialized ink and equipment used in the process. As the technology matures and production scales up, the cost of digital printing may gradually decrease in the future.
Another option is to order a truckload of printed cans and warehouse them for future runs. The downside of this option is not only the cost of warehousing ' but also the inability to make artwork changes between runs. A beverage packaging expert can help you navigate this route to optimize your order for future use.
Knowing your budget and having an accurate forecast will help you make an informed decision that aligns with your overall business goals. When making your decision, evaluate the pros and cons of the different packaging solutions. It may be tempting to go for the least expensive option, but depending on your situation, you may want to consider more flexible options, such as digital printing or sleeving.
While these options may have higher per-unit costs, lower MOQs and shorter lead times, they often translate into more flexibility so that you can adapt to uncertain sales or react to fluctuations in demand.
When you need a particular can style or size, you likely need it right away. Most beverage companies can't afford to wait six months for cans, given their production schedules and launch deadlines. Unfortunately, some can sizes are run unpredictably or only a few times per year, which can cause certain models and sizes to become unavailable for extended periods of time.
Additionally, if a production line goes down for a certain can or if there is a sudden desire for a popular new can model, supply may become limited. For example, if there is a huge spike in demand for Monster Energy drinks, pressure might get put on the supply chain to provide enough 16-ounce cans.
The best way to avoid availability issues is to plan ahead and pay attention to market trends and developments in beverage packaging. Build time and flexibility into your plans whenever possible. During times of threatened or scarce availability, a good existing relationship with your can supplier and co-packer can serve as an excellent source of information to keep you in the know and help you prepare for what lies ahead.
Your beverage's brand is a valuable asset that you want to plan and consistently maintain across your advertising and packaging. While standard four-color process printing is what most people and designers are familiar with, printing on a can is much different. In four-color process printing, four colors (cyan, magenta, yellow and black) are applied as separate layers to a substrate, and other colors are created by overlapping those colors or adding a spot color, or PMS color.
When printing on a can, all of the colors must be transferred to the can at one time from one common plate. Because colors can't be combined during the can printing process, you're limited to six spot colors. It can be difficult to color match on cans, especially with white hues. Because there is so much specialized knowledge related to can printing, it's important to work closely with vendors that specialize in can artwork and the special requirements before you place an order. It's also highly recommended that you attend the color proofing and press check to ensure that the cans printed will be what you pictured before full aluminum can production starts.
Your can artwork and design are equally as important as your can colors. A good can designer should have the expertise to trap and separate your artwork. Trapping is the process of placing a very small margin (usually three- to five-thousandths of an inch) between the colors on the can to keep them from overlapping during can printing since the aluminum cans don't absorb any ink. During printing, the colors spread out towards each other and fill the gap. This is a unique skill that not every graphic artist may be familiar with. You can work with the graphic designer of your choice on design, placement, labeling requirements, regulations, etc., as long as you make sure to have it expertly trapped and put on the correct die lines. If your artwork and design are not set up properly, the end result will not turn out as you expect. It is better to invest in design expertise than to lose money on a printing job that doesn't perfectly represent your brand.
All liquids must undergo corrosion testing before they are packaged into cans. This testing will determine the type of can lining your beverage requires and for how long the lining will last. Aluminum can manufacturers and most contract packers require that your can have a can warranty before producing your finished beverage. Most corrosion testing results in a 6-12-month warranty. It should be noted that some beverages can be too corrosive to be packaged in aluminum cans. Things that can cause your beverage to be corrosive include acidity level, sugar concentration, coloring additives, chlorides, copper, alcohol, juice, CO2 volume and preservation methods. Having the proper testing done ahead of time can help save time and money.
The more you understand the ins and outs of each container type, the easier it is to select the one that best fits your needs. Whether it's aluminum cans, glass or plastic, having the industry knowledge and insights to develop and execute a winning strategy is vital to your beverage's success.
Are you ready to discuss packaging options for your beverage? We'd love to help! As a leading distributor of packaging to the beverage industry, BevSource has strategic relationships with all the top packaging suppliers that allow us to secure both purchasing efficiencies and a reliable supply. Whether you need aluminum can packaging or different bottles, we can guide you through choosing the best option for your project, and we'll source the best packaging.
No matter the size of your order, you enjoy a personalized experience when you partner with us to source your beverage cans. From beer to seltzer or soda can packaging, we help you choose the right can according to the contents of your beverage, right down to testing can linings using our certified machines. We also work with you to explore ways to customize cans to best reflect your brand.
Sustainability has rightfully become a major concern for beverage companies and their consumers in recent years.
With customers becoming more and more conscious of their impact on the environment, beverage companies that don't take steps to make their product packaging and multipack carriers recyclable ' or otherwise environmentally-friendly ' risk falling behind.
By understanding the limitations of the U.S. recycling process, the elements of sustainable beverage containers, and what other options exist for can and packaging disposal, you can make an informed decision on how to design a product that is as 'green' as possible, which isn't limited to recyclable products.
The United States recycling system can be broken into three major parts: collection, processing and remanufacturing.
Recycling collection methods vary depending on local regulations, the Material Recovery Facility (MRF) that will be handling the materials and what type of material is being handled.
After collection, recyclables are sent to an MRF to be sorted, cleaned and processed into materials that can be remanufactured to produce new goods. Anything that can't be recycled is either thrown away or sent to a more specialized processing facility.
Key stakeholders in the U.S. recycling process have different priorities when it comes to recycling, but many now aim for a circular economy ' one where materials and products are reused rather than thrown away. However, getting there will take significant collaboration.
According to the Environmental Protection Agency (EPA), in , Americans only recycled or composted about 32% of the waste they generated. This may be attributed to several challenges, including:
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Lack of recycling education: Recycling can be complicated. Many consumers don't understand which materials can be recycled, how they should be recycled and where to recycle them. This often leads to recyclables being thrown in the trash or vice versa.
Infrastructure unable to handle mixed materials: Packaging composed of mixed materials can be difficult to recycle. For example, many paper-based can carriers have a thin, water-resistant layer of plastic that must be separated from the paper in order to be recycled. These products often end up at recycling centers anyway, slowing down efficiency and damaging machines.
Lack of infrastructure to serve domestic markets: The U.S. used to ship recyclables overseas, but in recent years, the main foreign markets for these materials have gotten much stricter about what they will accept. There is a growing demand for recycled materials in the U.S. market, but we don't have adequate facilities. As a result, a lot of recyclables end up in landfills or incinerators rather than being reused.
Lack of unity in recycling goals: In the U.S., roughly 20,000 different communities must make their own decisions about recycling. While flexibility to suit the needs of different communities is important, a lack of standards makes it hard for anyone to contribute to nationwide sustainability goals.
Despite the many challenges involved in creating sustainable beverage cans and packaging, there are steps you can take to make your products 'greener.'
Several factors determine if your beverage packaging is recyclable and how easy or challenging the process will be. When designing or choosing a recyclable beverage container, beverage companies serious about sustainability should factor in the following:
When it comes to beverage containers, make sure you choose environmentally-conscious materials. According to the organization Alliance to End Plastic Waste, the most sustainable beverage container materials, from most to least sustainable, are:
Aluminum: Since cans are made from aluminum, most canned beverage products are highly recyclable by default. MRFs can recycle aluminum cans indefinitely without affecting the material's quality. Also, the material's lightness cuts down on transportation emissions and costs.
Recyclable Plastic: Recyclable plastic bottles cannot be recycled as many times as aluminum or glass, but they're lightweight and don't require as many resources to recycle as glass, cutting down on the environmental impact.
Glass: Glass bottles are very heavy and take a lot more energy to recycle, but like aluminum cans, they can also be recycled infinitely.
Make sure labels can be easily removed from beverage containers. For example, untested metal foil or metalized labels may throw off automated sorting systems.
In addition, products with plastic coatings or linings are more challenging and costly to recycle because the different materials must be separated first. Beverage companies should consider the amount of label adhesive used as it will need to be removed before the label can be recycled. Additionally, not all labels are recyclable and compatibility of adhesives and inks needs to be discussed with manufacturers.
There are several types of materials used for multipacking canned beverages, including:
LDPE plastic: Flexible low-density polyethylene (LDPE) is commonly used to make ring carriers that hold 2-, 4-, 6-, and 8-packs of 12-ounce or smaller aluminum cans, as well as various bottle configurations. Many of the options available are 100% recyclable.
HDPE plastic: High-density polyethylene (HDPE) plastic carriers are strong and rigid. They are commonly used for multipacking slim, sleek and standard-size cans in 4-packs and 6-packs, as well as various bottle configurations. Many of the options available are 100% recyclable as well.
Shrink-wrap: Shrink-wrapping your multipacks can increase brand visibility and secure your beverages at a low price. However, the shrink wrap must be recycled at a specialized Materials Recovery Facility (MRF) that accepts soft plastic materials, since shrink-wrap often jams standard recycling machinery, causing slowdowns in their operation.
Paper/paperboard: Paper-based can carriers are often made with a plastic coating for added strength and moisture protection, but this makes them harder to recycle since the paper and plastic coating would need to be separated first.
And there are different types of degradation for these materials, such as:
Photodegradable can carriers: While you've likely seen companies market their 'photodegradable' can rings, you should know most beverage LDPE rings are photodegradable. The technology was created specifically for beverage can rings to help mitigate environmental risks. Photodegradable beverage can rings use a polymer that is broken down when exposed to UV light. Unfortunately, when mixed in with other garbage, these plastics aren't exposed to UV light and will not photodegrade.
Compostable can carriers: Compostable beverage can rings are a type of plant-based or fiber-based beverage ring that's eco-friendly and will break down completely over time ' but only under certain conditions. This type of carrier is designed to be composted in a specialized composting facility or in consumers' at-home composting bins. However, the number of composting programs accepting compostable packaging is limited. Only 19% of the largest cities offer options, and these cities represent only 11% of the total U.S. population. Not to mention, this is access to composting options, not usage.
Biodegradable can carriers: A new option offered by Roberts PolyPro, our Grip-Pak® 100% biodegradable beer and beverage can rings are an earth-friendly and environmentally clean option that will completely decompose in landfill conditions, no sunlight required! The biodegradable plastic attracts microorganisms that break down and consume the plastic at an accelerated rate, only leaving behind organic matter.
Due to high-profile environmental concerns among consumers, beverage companies have been laser-focused on creating more sustainable and recyclable multipacks, leading to an explosion of innovation.
Roberts PolyPro is proud of our sustainable solutions and advancements in packaging materials, including our fully biodegradable* Grip-Pak® can rings, as well as 100% recyclable* HDPE Craft-Pak® can carriers and bottle handles that use up to 30% less plastic than competing products.
Recycling in the U.S. has a lot of room for improvement, and beverage companies play a key role in making the system more sustainable. Luckily, there are many ways your business can help, including:
Coming up with personal sustainability goals
Becoming more aware of local recycling, composting and landfill struggles and needs
Participating in awareness campaigns and promoting sustainability education
Linking to helpful information on disposal/recycling on your company website, marketing material and other platforms
Installing a collection box for consumers to drop their reusable and recyclable plastic can carriers after use
Now more than ever, consumers want to know what beverage companies are doing to lower their impact on the environment. These actions and many more can help you communicate your sustainability efforts as well.
We are committed to keeping the same durable yet lightweight quality of our multipacks while also reducing the environmental impact of our products. With that goal in mind, our Craft-Pak® and bottle handle product lines are on their way to being 100% biodegradable too.
Knowing the complexities and challenges of the U.S. recycling infrastructure and with consumer behavior in mind, we determined products that biodegrade completely when tossed in normal garbage was the most sustainable option under present conditions.
Aluminum can recycling is simple and energy-efficient, so it's up to members of the beverage industry to design their canned products and packaging in a way that keeps it easy for consumers and facilities to dispose of them.
By being aware of how the recycling system works and how different design and packaging choices can impact sustainability, you can become a leader in the effort to create a circular economy.
We at Roberts PolyPro would love to be a partner on your journey. Our sustainable can carrier options can meet your sustainability goals and help you save.
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