Metal can circularity: What lies ahead for European aluminum packaging with demand set to rise 40%?

08 Jan 2024 --- Aluminum demand is forecast to rise by 40% by 2030. European packagers are calling on the EU to ensure essential policy changes are enacted to protect the sector’s financial and environmental sustainability, as cheaper, more energy-intensive produce is filling the market gap. 

While the International Aluminum Institute (IAI) estimates production will need to rise 33 metric tons by 2030 globally to satisfy increased demand, European Aluminium, representing over 100 industry businesses and organizations throughout the region, says increased market protection is needed to ensure the EU continues to profit. 

Kelly Roegies, senior communications manager at European Aluminium, tells Packaging Insights that the Packaging and Packaging Waste Regulation (PPWR) is an important opportunity for European leaders to implement needed revisions. 

“As the demand for aluminum in packaging continues to grow, it's crucial for EU policymakers to take strategic steps to support the industry, especially regarding recycling,” she says. 

“To achieve the EU’s goal of making all packaging reusable or recyclable by 2030, we must prioritize high-quality recycling. High-quality recycling should be properly defined under the EU’s Packaging and PPWR, providing the material to be recycled, can withstand multiple recycling loops without change to the intrinsic material properties and with minimal material losses during the recycling process.” 

Infrastructural development is key to improving circularity in the EU, says European Aluminium.Building infrastructure 
Roegies asserts that the definitions of recycling laid out by the EU must then inform the development of necessary infrastructure. 

“Establishing an efficient and well-planned infrastructure for separating, sorting and recycling packaging waste is crucial. It’s imperative that the directive outlines specific measures for member states to improve and standardize their collection systems.” 

“Efficient collection systems directly impact the quantity and quality of recyclable materials, and the implementation of advanced plastics, metals and drinks collection systems equipped with technologies like double eddy current separators (ECS) and pyrolysis can significantly boost the availability of high-quality recycled aluminum,” she says. 

ECS remove nonferrous metals such as aluminum, die-cast metal and copper from nonmetallic material. 

“This not only supports the growing demand for aluminum in packaging but also reduces our reliance on primary raw materials, contributing to a sustainable future for both the industry and the environment.”

Aluminum’s European future 
Packaging industry analyst Neil Farmer says he is confident about the prospects of the aluminum packaging industry in 2024. 

“Aluminum beverage cans are the most recycled drinks containers in Europe — a rate of 76%. The sustainability benefits and recyclability of aluminum make it an ideal choice for both alcoholic and non-alcoholic drinks segments,” he says. 

In 2023, leading metal can producers Crown and Ball announced plans to build new beverage can facilities in the UK.

In August, Crown announced the acquisition of Helvetia Packaging, a German beverage can and can-end manufacturer based in Saarlouis, to meet the requirements of local and regional customers.

Farmer says he estimates the global aluminum can packaging market will grow at a minimum rate of 4% annually until 2030. 

At the recent COP28 climate summit in Dubai, UAE, global aluminum stakeholders agreed on a target of 100% recycling by 2050. The plan aims to support the International Energy Agency’s “Net Zero 2050” goal and address the need for enhanced recycling to combat climate change.

“There is much good work being done on sustainability in the sector,” asserts Farmer. “But while aluminum cans are widely recycled, the industry has room to improve. Infrastructure gaps can cause materials to be misrouted and lost from the circular economy.”

“Closer cooperation is needed both upstream and downstream to agree on the responsibilities of all players, including environmental organizations. Greater recycling equipment investment is still needed, despite successes to date.”

By Louis Gore-Langton