The weightlessness of empty aluminium cans (average weight of a can is 13-15 grams) cuts the transport expense of glass bottles by 40% (in every thousand cans), and the logistics figures of AB InBev in 2023 suggest that after utilizing empty aluminium cans for sale, Load per truck increased from 1,200 cases (glass bottles) to 2,200 cases (aluminium cans), with fuel efficiency increasing by 18%. According to the American Craft Beer Association, after small breweries adopt aluminum can packaging, the distribution radius has expanded from 160 kilometers to 500 kilometers, and the average annual sales growth has reached 27% (compared to Just 9% in glass bottles). BrewDog, for example, has increased its proportion of exports from 15 per cent to 35 per cent through aluminium cans and reduced the breakage rate per can from 3.2 per cent to 0.05 per cent.
The sealing and shelf life advantages of the aluminum can are impressive. The tank’s oxygen permeability (OTR) is ≤0.001cc/ can/day, 80% less than that of the glass bottle (OTR≥0.005cc), and it can extend the beer freshness period from 6 months to 12 months. Ball Corporation’s research suggests that aluminum canned IPA with nitrogen flushing technology (residual oxygen ≤0.2%) can improve flavor stability by 50% and shelf life complaints by 73%. In 2024, Heineken launched the aluminum canned craft brew range in Asia-Pacific, with a 4-minute foam durability after can opening (2.5 minutes for glass bottles only), and this increased the repeat purchase rate by 22%.
Lower cost of custom design drives adoption. Digital printing technology reduced the cost of printing designs on aluminum cans from ¥0.5/can in 2018 to ¥0.15/can in 2024, and the lead time of small batch orders (from 5,000 cans) has been reduced to 14 days (traditional plate making is 45 days). Using the web-based design software of Crown Holdings, the manufacturer of blank aluminum cans, Stone Brewing in the US was able to achieve 200 limited can designs within 24 hours, with a 60% improvement to the speed of new products to market. Craft specialty cans can command a 30% to 50% premium, according to Nielsen data, such as Founders Brewing’s “Graffiti Series” aluminum cans for 15/6 cans (base 10), and sales grew by 41%.
Pressure to comply with going green accelerates the shift. World average recycle rate for cans of aluminum is 69% (only 34% for bottles of glass), and the recycling can occur time and time again (just 5% of the primary aluminum’s required energy is consumed through recycling). After the EU’s Single-use Plastics Directive has been regulated, the proportion of recycled content in the packaging of drinks should be ≥30% in 2025, and that of recycled content used to fill an aluminum can should be up to 70% (e.g., Ball’s Infinity series). The Boston Beer Company approximates that the use of tanks constructed from 50% recycled aluminum reduces carbon usage by 18 tons per million cans, and because it met the needs of the ESG investors, its annual stock price (14%) has increased above the industry average (8%).
The difference in efficiency in filling lines is the most significant aspect. The filling speed of aluminum cans is 2000 cans/min (glass bottle production line speed ≤800 bottles/min), and the equipment occupying area is reduced by 40%. Japan’s Kirin beer factory conversion case shows that since the conversion to the aluminum can production line, the energy consumption per unit capacity reduces by 25%, and the labor cost reduces by 30% (due to automatic rejection of defective products from 1.1% to 0.02%). Lagunitas craft beer brand realizes small-batch flexible production with modular aluminum can filling machines (¥3 million cost), reducing the new product development cycle from 90 days to 30 days, and increasing 120% more SKUs annually.
Risk hedging and inventory elasticity demand is prominent. The price volatility in aluminum (18% annualized standard deviation) is higher than in glass raw materials (9% volatility of the price of quartz sand), but the futures lock-in feature of the advance-purchased price differential for sold-out aluminium empty cans (6 months’ advance purchased price differential of ±3%) ensures that the winery is still within reach. Budweiser Asia Pacific 2023 financial report shows that, through the adjustable pricing agreement of aluminum can suppliers (sales volume exceeds the benchmark ratio of 5% rebate), the proportion of raw material costs was reduced from 21% to 18%. During the pandemic, Carlsberg used a significantly lower rate of stock turnover for aluminum cans (45 days) than glass bottles (90 days) in order to quickly react to altered production schedules, reducing the stock shortage rate from 7% to 1.5%.
Consumer scenario migration drives choice. Outdoor consumption settings (music festivals, camping) account for 40% of sales of craft beer, and aluminum cans are superior for drop resistance (99.9% drop test pass rate) and mobility (30% lighter than glass bottles). According to data from the US Drizly platform in 2023, web sales of aluminum cans of craft brew accounted for 58% (glass bottles just 22%), and customer-paid price was $4 more. Craft brand Voodoo Ranger introduced the convenience store channel through 325ml small-capacity cans of aluminum (for solo drinking), and the monthly sales quantity in a single store climbed to 1,200 cans (only 400 bottles of standard 500ml bottles).
In short, the popularity of on sale empty aluminum cans for sale is a result of four-dimensional motivation by price (40% freight savings by light-weighting), technology (50% shelf life extended by sealing), environmental sustainability (69% rate of recovery) and market (40% outdoor location). According to McKinsey, global beer aluminum canning ratio will rise from 45% in 2020 to 63% in 2025, and the penetration ratio of the craft beer segment will exceed 78%. However, beware of aluminum price fluctuation: LME aluminum prices to $2,650 / ton in 2024 (+12% year-on-year), may compress small and medium-sized wineries’ 5%-8% gross margin room.
