Market Trends of Latin America Beer Cans Industry
Aluminium Can to Hold a Significant Share in Brazil
- Aluminium cans boast high recyclability, with recycling processes consuming notably less energy than new aluminium production. Countries in Latin America, such as Brazil and Mexico, have established robust recycling systems, enhancing aluminium's eco-friendliness. This resonates with environmentally conscious consumers and aligns seamlessly with global sustainability trends.
- Moreover, aluminium cans are lightweight, easily transportable, and more durable than glass bottles. As a result, consumers are increasingly gravitating towards cans for convenience, particularly during outdoor activities, parties, and gatherings. This portability makes cans especially attractive to the contemporary urban demographic in Latin America. With a rising trend in on-the-go consumption, the demand for canned beverages is surging. Furthermore, aluminium cans are chosen for their user-friendliness in public spaces, events, and festivals, which are integral to Latin American culture.
- Leading beverage companies across Latin America are embracing sustainable practices. By choosing aluminium cans, these organizations advance their corporate social responsibility (CSR) objectives and work towards minimizing their carbon footprint, further propelling the demand for this packaging format. In addition, CROWN Embalagens S.A., a Brazilian subsidiary of Crown Holdings, Inc., has its sixth beverage can plant in聽Brazil. Its two-line facility produces two-piece aluminium cans in multiple sizes and has an annual capacity of 2.4 billion cans.
- As urban populations grow and lifestyles become more fast-paced, canned beer is increasingly preferred for its ease of use. As income levels rise, consumers seek more convenient and premium packaging options.聽This has further fueled the demand for beer cans in Brazil, aligning with the beverage sector's premiumization trend. According to the World Bank, in 2023, Brazil's national gross income per capita amounted to around USD 9,070, an increase from 8,240 dollars per person in the previous year.
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Brazil is Expected to Witness a Significant Market Growth
- Brazil's large population boasts a deep-rooted culture of beer consumption. Beer is a staple beverage, prominently featured in social settings, festivals, and significant events such as Carnival and football matches. This consistent demand for beer, in turn, fuels the need for packaging, with cans capturing a substantial portion of the market. According to Banco do Nordeste, beer consumption in Brazil was forecast to reach nearly 11.3 billion litres by 2024, up from the estimated 10.8 million a year earlier.
- In addition, Brazil has one of the highest aluminium recycling rates in the world, recycling over 90% of its aluminium. This well-established recycling system makes aluminium cans an environmentally friendly option that appeals to consumers and businesses.
- Owing to increased consumption, beer manufacturers are increasing production in Brazil. The result is the growing number of manufacturing plant projects for the region's market vendors. For instance, in March 2023, Heineken unveiled a BRL 1.5 billion (USD 300 million) investment to boost production capacity in two of its breweries in Northeast Brazil. This strategic move is set to cater to the rising demand, especially for premium beers and single-malt brands, including Heineken, Amstel, and Devassa.
- Over the past decade, Brazil's craft beer market has experienced significant growth. Craft brewers are increasingly favouring aluminium cans over traditional glass bottles. Cans offer superior preservation of beer freshness, shielding it more effectively from light and oxygen. As a result, this burgeoning craft brewing scene is driving up the demand for beer cans.
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