FMI’ Analyst view: ‘Spray to success: Exploring the aerosol packaging frontier’
Dec 19, 2023
The aerosol packaging market size is projected to be valued at US$ 7.5 billion in 2024 and is expected to rise to US$ 12.3 billion by 2034. The global aerosol packaging market is expected to grow at a rate of 5.0% during the forecast period. In 2023, the market was valued at US$ 7.2 billion.
Consumption Analysis of the Aerosol Packaging Market
- Cosmetic companies across the world form one of the leading consumer groups for the aerosol packaging market. They utilize aerosol packaging solutions for deodorants, hairsprays, shaving creams, hair mousses, sunscreens, body sprays, etc.
- Cleaning product manufacturers also use aerosol packaging to manufacture air fresheners, insect repellents, cleaning sprays, furniture polishes, and specialty household products.
- Apart from these, pharmaceutical companies use aerosol packaging in containerizing inhalers, topical sprays, ointments, pain relievers, nasal sprays, sanitizers, medical disinfectants, and pharmaceutical formulations.
- Automotive product manufacturers also contribute significantly to the overall market for aerosol packaging. They use this methodology in the encasement of automotive lubricants, tire inflators, rust inhibitors, etc.
- Aerosol packaging also finds its applications in the electronics industry. Technology companies use aerosol packaging in aerosolized electronic cleaning products and contact cleaners.
Restraining Factors Adversely Affecting the Aerosol Packaging Market
- Traditional propellants, such as hydrofluorocarbons (HFCs) and chlorofluorocarbons (CFCs), remain a key challenge in this market due to their contribution to ozone depletion and greenhouse gas emissions.
- Aerosol cans, if not disposed of properly, can generate a lot of waste, which can cause tremendous harm to the vegetation and soil due to their non-biodegradable nature. This can deter eco-conscious consumers from buying the products.
- The installation of highly advanced aerosol packaging technologies can incur higher initial costs for manufacturers. This investment becomes one of the most significant hurdles for smaller companies with limited financial resources.
- The aerosol packaging industry faces rigorous competition from alternative packaging solutions, such as pump sprays, roll-ons, or solid forms, in various industries. This can divert demand away from traditional aerosol packaging.
- The packaging industry is filled with misconceptions and negative perceptions about aerosol products, particularly in terms of safety, environmental impact, or association with harmful chemicals. This can negatively impact the market growth.
Country-wise Insights
The section provides an analysis of the aerosol packaging market by countries, including China, India, the United Kingdom, Thailand, and South Korea. The table presents the CAGR for each country, indicating the expected market growth in that country through 2034.
Aerosol Packaging Market in India
The India aerosol packaging market is anticipated to retain its dominance by progressing at an annual growth rate of 7.70% till 2034.
The booming e-commerce industry in India has significantly contributed to the growth of the aerosol packaging market. The need for secure and efficient packaging for the safety of products, ranging from beauty and personal care items to household goods, during transit has fuelled the market growth for aerosol packaging solutions. Besides this, the rising disposable income of the Indian middle class has increased consumer spending on a variety of products with sophisticated packaging, such as aerosols.
Aerosol Packaging Market in China
China is another Asian country that is leading this market. Over the next ten years, the demand for aerosol packaging solutions in China is projected to rise at a 6.80% CAGR.
Growing environmental awareness in China has resulted in a shift towards sustainable packaging solutions. To respond to this demand of eco-conscious consumers, manufacturing units are developing eco-friendly alternatives for packaging, such as recyclable materials and propellant innovations. China’s rapid urbanization and evolving lifestyle have also led to the demand for convenient and on-the-go cosmetics, which are packaged using this methodology.
Aerosol Packaging Market in Thailand
In the ASEAN region, Thailand leads the market for aerosol packaging solutions. The market in Thailand is poised to showcase a 6.60% advancement per year from 2024 to 2034.
Thailand is renowned for its robust tourism and hospitality sector in the entire world. Millions of tourists from all over the world flock to the country annually. These tourists often require travel-sized personal care products, such as perfumes, hair sprays, sanitizers, etc. Aerosol-packed containers are the perfect choice for these products, fuelling the overall market.
Aerosol Packaging Market in South Korea
The South Korean aerosol packaging market is anticipated to register a CAGR of 5.90% through 2034.
South Korea is a global hub for beauty and skincare innovations. The aerosol packaging market has significantly benefited from the popularity of K-beauty trends. The aerosol packaging methodology is commonly used in the packaging of innovative skincare and cosmetic products, contributing to its growth in the country.
Aerosol Packaging Market in the United Kingdom
In Europe, the United Kingdom aerosol packaging market is anticipated to register a CAGR of 4.50% through 2034.
The United Kingdom is home to the well-to-do population in the world. There is a great demand for premium cosmetics and luxury goods in the domestic market. Aerosol packaging is gaining a lot of impetus in the United Kingdom, as it allows brands to create visually appealing and unique products, enhancing their market presence in a competitive landscape.
Competitive Landscape
The market for aerosol packaging is filled with numerous players, such as Berry Global Inc., Crown Holdings Inc., Ball Corporation, etc. These companies dominate the majority share of the global market valuation. The said players have a strong foothold and have gained a loyal consumer base. The market is already saturated in terms of innovations. Small brands, though, find it very challenging to sustain in this cut-throat competition due to lower profit margins, limited financial resources, and restricted market expertise.
Recent Developments
- In 2023, Berry Global Group, Inc., a prominent aerosol packaging company, successfully announced its commitment to achieving net-zero emissions across its global operations and value chain by 2050.
- In 2023, Novelis Inc. entered into a long-term agreement with Ball Corporation for the supply of aluminum beverage can sheets. Under the contract, Novelis will supply aluminum sheets to Ball Corporation's can-making facilities in North America.
- Aptar Pharma, a division of AptarGroup, Inc., released APF Futurity, its inaugural metal-free, multi-dose nasal spray pump designed for dispensing nasal saline and similar over-the-counter formulations.
