South America Metal Packaging Market Outlook, 2030

The South American metal packaging industry has evolved into a vital part of the region’s packaging landscape, combining durability, recyclability, and technological adaptability with real-world successes in sustainability. Historical reliance on glass and plastics gradually gave way to aluminum and steel solutions that offer superior shelf-life, transport resilience, and closed-loop recyclability. Brazil exemplifies this shift, achieving a remarkable 97.3% aluminum can recycling rate in 2024, one of the highest worldwide, powered by extensive waste-picker cooperatives and advanced reprocessing systems. These efforts have prevented millions of tons of greenhouse gas emissions and conserved natural resources, demonstrating how circularity can be scaled in emerging economies. Argentina adds to this momentum through Aluar, its sole aluminum smelter, which operates at a capacity of 460,000 tons annually, with 70% directed to export markets, anchoring both local and global supply chains. At the same time, regulatory frameworks like Brazil’s National Solid Waste Policy are driving extended producer responsibility programs that integrate collection, reuse, and recycling into company strategies. Innovation in coatings has allowed for BPA-free, corrosion-resistant, and lightweight designs that protect beverages and foods under South America’s varied climates while aligning with global safety norms. Global leaders and regional players alike continue to reinforce the market’s relevance through investments and partnerships Ambevalso’s USD 175 million beverage can plant expansion in Brazil added 1.5 billion cans annually, strengthening supply for the continent’s beer industry. Beyond basic containment, smart packaging features and resealable lids are being tested to elevate consumer engagement, while premium beverage producers increasingly highlight the environmental benefits of metal packaging in their branding. Supply chain resilience is influenced by fluctuating energy costs for smelting and by trade policies, but steady R&D in lightweighting, coatings, and smart technologies ensures that companies remain competitive.

According to the research report, ""South America Metal Packaging Market Outlook, 2030,"" published by Bonafide Research, the South America Metal Packaging market is anticipated to add to more than USD 1.64 Billion by 2025–30. Brazil’s industry remains a focal point, with its unmatched recycling ecosystem ensuring near-complete aluminum recovery and slashing energy use by up to 95% compared with primary production. Argentina’s Aluar smelter underpins raw material availability, while regional supply chains are further strengthened by the presence of global leaders. Ball Corporation expanded through the acquisition of Tubex’s aluminum aerosol business in Brazil in 2020, securing eight extrusion lines for personal care packaging and diversifying its regional portfolio. In parallel, Ardagh Metal Packaging’s 2021 listing on the New York Stock Exchange following its merger with Gores Holdings V marked a milestone in financial backing for sustainable can production. Local expansions continue to intensify competition Ambevalso invested heavily in Brazil’s beverage can capacity despite pandemic disruptions, while new beverage entrants like BrasilBev’s Organique energy drink in 2024 and Socorro Bebidas’ flavored mineral water in 2023 launched in partnership with Crown Holdings using CrownSleek cans demonstrate how local brands leverage sustainable packaging as part of their identity. Mergers and acquisitions have also reshaped the landscape, with Mauser Packaging Solutions’ acquisitions of Taenza in 2023 and 2024 enhancing steel can and pail production capabilities across Latin America, supporting industries beyond beverages such as paints, sanitation, and specialty chemicals. Consumer perception continues to tilt toward premium, sustainable packaging, with cans increasingly chosen for ready-to-drink beverages, energy drinks, and artisanal products, boosting demand across urban middle classes in Chile, Colombia, and Peru.

Market Drivers

• Growing Preference for Canned Dairy and Nutritional BeveragesMetal packaging is gaining traction in South America’s dairy and nutritional drinks sector. Companies like CavinKare have partnered with Ball Corporation to bring milkshakes and functional beverages into recyclable aluminum cans, highlighting a shift away from traditional plastic bottles. This transition is driven by urban consumers seeking convenient, on-the-go formats that also align with sustainability goals. The nutritional beverage market’s expansion is creating new demand for cans beyond beer and soft drinks, strengthening the role of metal in everyday consumption.
• Government Push Toward Circular EconomySouth American governments are introducing stricter waste management and recycling mandates, creating a favorable environment for metal packaging. Brazil’s National Solid Waste Policy has reinforced extended producer responsibility (EPR), compelling companies to adopt materials with higher recyclability. Aluminum cans, with their established closed-loop system, provide an advantage over PET and glass. Such legislative backing not only incentivizes manufacturers to expand local production but also attracts investments from global players aiming to align with the region’s evolving sustainability regulations.

Market Challenges

• Volatility in Aluminum Scrap AvailabilityEven with high recycling rates in Brazil, fluctuations in aluminum scrap supply create uncertainty for packaging manufacturers. Seasonal collection variations, dependence on informal recycling networks, and uneven availability across regions drive price instability. Smaller producers without strong sourcing contracts are especially vulnerable to these fluctuations, making it difficult to maintain consistent margins in a competitive market. This volatility remains a structural barrier to the stable growth of the sector.
• Competition from Low-Cost AlternativesDespite the advantages of metal, cost pressures encourage the use of PET bottles and flexible plastics in many South American countries. PET often has lower upfront production costs, making it the material of choice for low-margin beverages and emerging brands. Additionally, consumer awareness of recyclability remains uneven across the region, slowing the transition from plastic to metal. Unless metal packaging can maintain its edge through innovation and economies of scale, competition from cheaper alternatives will remain a key challenge.

Market Trends

• Rise of Local Craft and Specialty BeveragesThe craft beer movement and the rise of niche beverages in South America are fueling demand for customized metal packaging. Smaller breweries and artisanal producers are increasingly adopting cans for their portability, freshness retention, and branding opportunities. For instance, craft beer consumption in Brazil and Chile has surged, prompting local can makers to offer smaller batch runs and more design flexibility. This shift demonstrates how consumer preference for unique, local products is shaping packaging innovation.
• Adoption of Lightweighting and New CoatingsProducers in South America are investing in lightweight metal packaging and advanced coating technologies to reduce material use while maintaining product integrity. BPA-free linings and corrosion-resistant coatings are becoming standard to meet international safety benchmarks and consumer expectations. Lightweighting not only cuts raw material costs but also reduces carbon emissions during transport, aligning with the sustainability goals of both global and regional brands. These innovations signal a trend toward efficiency-driven solutions in the regional metal packaging industry.

Aluminum has secured the top spot as the preferred material in South America’s metal packaging market because its balance of lightweight strength, recyclability, and adaptability meets both industry and environmental demands.

South America has witnessed a steady rise in aluminum use across packaging largely due to its unmatched ability to be recycled endlessly without losing quality, a critical factor in countries like Brazil that have some of the highest aluminum recycling rates globally, often above 95%. Beverage companies in the region depend heavily on aluminum cans not only for their lightweight properties that reduce transport costs across vast distances but also for their ability to withstand diverse climates, from the tropical heat of northern Brazil to cooler regions in Argentina and Chile. Unlike glass, aluminum does not shatter, and compared with plastic, it avoids public backlash around pollution while aligning with consumer preferences for sustainable options. Beyond beverages, the material’s adaptability supports use in food, pharmaceuticals, and cosmetics, creating a broad industrial base. Governments and recycling cooperatives have also played a role, creating systems where informal collectors contribute to aluminum’s exceptionally high recovery rate. This circularity reduces pressure on primary smelting, which is significant considering the region’s strong bauxite and aluminum production industries. Moreover, innovations in lightweighting and eco-friendly coatings are making aluminum even more attractive to brand owners who seek packaging that aligns with global environmental goals while appealing to health-conscious consumers.

Food and beverages dominate as the leading end-use category in South America’s metal packaging market because this sector depends more than any other on durability, safety, and extended shelf life to serve its diverse population.

The food and beverage sector across South America has long relied on metal packaging due to its ability to maintain product integrity and extend shelf life, which is particularly important in countries where hot climates, variable supply chains, and rural distribution challenges can threaten food quality. Canned foods, from beans and corn to ready-to-eat meals, remain popular staples in Brazil, Argentina, and Chile because they ensure long-term storage and safety without refrigeration, an advantage in regions with energy access gaps. The beverage segment is equally dependent on metal, with aluminum cans dominating beer and soft drink consumption, markets in which Brazil is among the world’s largest. South American consumers also associate metal packaging with quality and reliability, viewing canned products as safer from contamination compared with alternatives. In addition, rising health-consciousness has led to stronger demand for preservative-free and organic food, which benefits from the barrier properties of metal that protect flavor and nutrients without artificial additives. On the supply side, multinational and regional companies continue investing in canmaking plants and coating technologies to meet increasing demand, especially for premium beverages like craft beer and energy drinks. The strength of the food and beverage industry in shaping consumer habits, combined with the logistical advantages of metal packaging in such a geographically vast and climatically diverse region, makes this sector the natural leader in driving packaging choices across South America.

Caps and closures are emerging as the fastest-growing product type in South America’s metal packaging market because they bring together convenience, product safety, and branding appeal in ways that resonate with evolving consumer preferences.

The growing role of caps and closures in South America reflects shifting lifestyles and heightened demand for packaging that not only protects contents but also enhances usability and brand differentiation. Consumers across Brazil, Chile, and Colombia increasingly expect resealable, easy-to-open designs that align with modern, on-the-go lifestyles, particularly among younger demographics. This has made metal closures a key innovation area, with twist-off caps, crown corks, and specialty dispensing solutions gaining traction across beverages, sauces, and personal care products. At the same time, brand owners view closures as a way to add premium appeal through decorative finishes, embossing, and lightweight metal alloys that balance aesthetics with sustainability. In beverages, metal crown caps continue to dominate beer packaging in Brazil, while energy drinks and sparkling waters increasingly use sleek metal closures to enhance shelf appeal. Safety is another critical driver, as tamper-evident metal seals are seen as more reliable in maintaining product integrity compared with some plastic alternatives. Regulatory trends and retailer preferences for recyclable packaging formats further boost demand for all-metal systems, making closures an essential part of the circular economy. Manufacturers are also investing in advanced coatings and BPA-NI technologies to ensure closures meet stringent global food safety standards, which is critical for both local consumption and exports.

Brazil is leading in the South America metal packaging market due to its strong beverage industry, particularly beer and soft drink, which has driven massive investments in aluminum can production and recycling infrastructure.

Brazil’s dominance in the South American metal packaging market is deeply connected to the scale and culture of its beverage industry, which ranks among the largest beer and soft drink consumers in the world and has created a robust ecosystem for aluminum can manufacturing and recycling. Local companies and global players have invested heavily in Brazil due to this demand for instance, Ambev completed a USD 175 million beverage can plant expansion in 2020, raising production capacity to 1.5 billion cans annually despite pandemic disruptions. This commitment is reflected in the broader competition among major packaging producers like Ball, Ardagh, and Canpack, all of which have sought to expand their footprint in Brazil to capture the high-volume beverage market. What sets Brazil apart from many countries is its near-perfect aluminum recycling rate, which consistently hovers above 95%, making it one of the most efficient closed-loop markets worldwide. This ensures a steady supply of scrap aluminum, lowering reliance on virgin material and insulating manufacturers from global price fluctuations. Additionally, the country’s position as a hub for premium beverage launches has further accelerated innovation in packaging formats, from slim energy drink cans and flavored mineral waters such as Socorro Bebidas’ Acquíssima Sabor, developed in partnership with Crown Holdings in 2023, to organic products like BrasilBev’s Organique, launched in March 2024. Brazil’s domestic demand, paired with sustainability commitments and regulatory alignment with circular economy goals, has transformed it into a leader not only in consumption but also in production capacity and recycling efficiency.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation. Show more