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Aluminium cans & the future of beverage packaging
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Wednesday, 01 October, 2025, 15 : 00 PM [IST]
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Rajesh Khosla
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The Indian beverage landscape is undergoing a transformative shift, shaped by rapid urbanisation, rising incomes, and evolving consumer expectations. As lifestyles become faster-paced and more mobile, demand is growing for convenient, portable, and aesthetically appealing beverage formats. Packaging, once viewed simply as a container, is now a key factor in how products are experienced and valued by consumers.
This shift is redefining the role of aluminium cans in the Indian market. Once associated mainly with beer and carbonated soft drinks, cans are now moving into the mainstream across a wider array of beverages, from flavoured waters and dairy-based drinks to functional nutrition products. The growth of craft offerings and niche categories such as cold brew coffee, energy drinks, and sparkling waters has further accelerated this transition—firmly positioning aluminium cans as a versatile, future-ready packaging solution for India’s dynamic beverage sector.
The sustainability imperative
Environmental awareness is now a defining driver of packaging decisions. Consumers and regulators alike are prioritising materials that advance circular economy principles and reduce ecological footprints. In this context, aluminium stands out as a high - performance, sustainable packaging option choice.
Unlike other packaging materials, which deteriorates in quality with each recycling cycle, aluminium is infinitely recyclable without any degradation in strength or purity. This inherent property makes it a resilient and future-ready choice for sustainable packaging. The energy needed to produce a recycled aluminium can is also substantially lower than that needed for a new one, offering a compelling case for energy efficiency and climate conscious manufacturing.
This momentum is further supported by policy and corporate action. For beverage brands, aluminium packaging increasingly represents not just a compliance measure but a pathway to delivering on sustainability goals and strengthening consumer trust. In alignment with the Government of India’s Extended Producer Responsibility (EPR) mandates and stringent waste management regulations, many beverage companies are now actively exploring alternatives. ESG commitments from corporations further underscore this shift, as brands seek packaging solutions that align with sustainability goals and consumer values.
Industry growth and market dynamics
The packaging industry’s evolution is mirrored in the growth of the aluminium can segment. Globally, aluminium can production stands at approximately 430 billion units annually, valued at $54 billion, with an expected year - on - year growth rate of 5 - 6%. The domestic market currently produces 3.7 billion cans annually, valued at $400 million, but is growing at a much faster pace — approximately 15% annually.
Much of this growth is being driven by demand in carbonated soft drinks and energy beverages, but premium and specialty segments are also on the rise. Global beverage majors are expanding their canned product portfolios, with Indian brands increasingly following suit. This includes the launch of new SKUs in slick cans that appeal to cost - conscious consumers without sacrificing quality or design.
Rising disposable incomes, shifting consumer tastes, and the expansion of organised retail and e - commerce are all reinforcing this upward trend? The can’s durability, stackability, and tamper - proof nature make it ideal for long - haul distribution - a growing necessity in India's diverse and sprawling retail ecosystem.
Supply chain and manufacturing expansion
Historically, India’s aluminium can manufacturing capacity was limited, controlled by a small number of producers. However, the last few years have seen a wave of new investments aimed at expanding local production to meet rising demand and reduce dependence on imports.
States like Uttar Pradesh and Telangana are emerging as industrial hubs for aluminium can manufacturing, supported by government incentives and industry interest. These new facilities, often equipped with advanced technologies and automated lines, are designed to handle large volumes while ensuring quality and consistency.
New entrants and existing players alike are scaling up operations to meet the dual goals of addressing growing consumption and aligning with sustainability imperatives. This domestic production boost not only enhances the resilience of the supply chain but also supports local employment and economic development.
Design, innovation, and consumer appeal
Aluminium cans are not just practical - they are also becoming a canvas for innovation and storytelling. The sleek form factor, lightweight portability, and full - body printable surface makes them a favourite for brand marketers targeting younger demographics.
Beyond visual appeal, cans also offer technical advantages. They preserve flavour and carbonation more effectively than many alternative materials and end the need for preservatives thanks to their light and air resistant properties. Recent innovations include re - sealable cans and textured finishes that enhance user experience while keeping the packaging's functional integrity.
The move toward limited - edition packaging, festival - themed graphics, and personalised designs is further enhancing consumer engagement. These innovations are turning the humble beverage can into a versatile and dynamic medium dynamic medium for brand expression and customer loyalty.
Economic and environmental advantages
From an economic perspective, aluminium cans offer multiple efficiencies. They are lightweight and easy to transport, which reduces transportation costs and associated emissions. Their stackability optimises warehouse space and logistics management, making them a preferred choice for in large-scale distribution networks.
Environmentally, aluminium cans contribute to a circular economy. The high recycling rate in India is supported by a robust and informal scrap collection network that continues to mature. The ability to recover and reuse aluminium without degradation significantly reduces the carbon footprint of beverage packaging.
Moreover, as companies and consumers become increasingly sensitive to climate impact, the advantages of aluminium cans, both in terms of lifecycle emissions and end of life recyclability, position them as one of the most responsible choices in today’s packaging portfolio.
Future outlook
Looking ahead, aluminium cans are poised to capture an even larger share of India’s beverage packaging market. The sector is no longer confined to soft drinks and alcoholic beverages. Increasing penetration into non - carbonated segments such as dairy, fruit juices, and flavoured water is expanding the scope and relevance of this packaging format.
The expansion of domestic manufacturing capacity, including upcoming investments in key regions such as Uttar Pradesh, is expected to enhance both scale and efficiency in aluminium can production. This growth strengthens India’s packaging ecosystem, aligning it with global consumption patterns and sustainability trends.
As government policies continue to evolve in favour of sustainable materials, and as consumers become more informed about their environmental choices, aluminium cans are well positioned to become the aspirational standard for modern beverage packaging. With the right mix of innovation, policy support, and market readiness, the future for aluminium in India’s beverage sector looks not just promising, but transformative.
(The author is CEO at AGI Greenpac Limited)
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