Beer and soft drink industry drives development of metal cans
The downstream industry of Chinas metal packaging industry is mainly the fast-moving consumer goods industry such as food and beverage. With the continuous upgrading of our countrys consumption patterns, the industry concentration in various sub-sectors of the FMCG industry is also gradually increasing. besides a few companies with absolute brand advantages forming a certain degree of oligopolistic advantages, many enterprises in the industry are fiercely competitive.
The downstream customers of the advantageous metal packaging enterprises are mostly large-scale high-quality customers. these customers have high brand awareness and strong profitability and have high requirements on the quality of metal packaging and supply stability. Customers strictly select high-quality leading enterprises in the metal packaging industry and establish long-term and stable strategic cooperation with them.
Advantageous metal packaging enterprises rely on their own advantages in technology, management and cost scale to form benign cost interaction and transfer with customers. Based on this, when adverse changes occur in downstream industries, the profitability of advantageous metal packaging enterprises is relatively limited.
The food and beverage industry, especially the soft drink industry and the beer industry, is the largest downstream market of the metal packaging industry. In addition to metal packaging materials, soft drink and beer industries also use other packaging materials including plastic and glass. Due to the high strength, non-fragile and high barrier of metal packaging, and the convenient transportation and use of metal cans, the development of soft drink industry and beer industry will create greater demand for metal cans, thus stimulating the further development of metal packaging container manufacturing industry.
In the soft drink industry, metal cans have been widely used by major manufacturers in the packaging of fruit and vegetable juice, carbonated beverage, milk-containing beverage, vegetable protein beverage, tea beverage and other products. In the beer industry, metal cans have become the main choice to enjoy beer conveniently, quickly and safely.