Year of adjustments for aluminum cans in Brazil

Year of adjustments for the aluminum can sector in Brazil

The Brazilian Association of Aluminum Can Manufacturers (Abralatas) published the report on the 2022 results for the aluminum can sector and, according to it, the sector faced numerous challenges during the Covid-19 pandemic.

The market situation was not the best last year, as the representative entity reported that its performance was down 4.7% compared to that recorded in 2021. However, this decline was only noted during the first three months of the year, with steady growth in the remaining quarters.

According to this association, among the factors contributing to the situation were the weather, in a year in which temperatures were lower than in previous years; the reopening of bars and restaurants, with greater consumption of glass beverages; world events, such as the World Cup and the early elimination of Brazil; and the repression in consumption, caused mainly by inflation.

Industries had to make some adjustments and reduce their costs to continue to maintain stable production, given the high prices of aluminum as a raw material in the can. This implied an important work of rearrangement of the manufacturing parks at a global level.

Nevertheless, the sector continued with expansions of new production lines, among other investments totaling approximately US$1.2 billion. The objective is to have full capacity to meet the likely demand in the coming years.

However, although beer remains an essential product for this market, Abralatas also noted positively the growth in the consumption of several other types of canned beverages, such as energy drinks, soft drinks, beverages, wines, whiskey, coffee and water.