As societal and regulatory momentum towards promoting sustainability and the creation of effective circular economies continues to grow, the aluminum packaging industry has some distinct advantages, not least the effectively infinite recyclability of aluminum itself. However, a significant number of consumers globally do not see aluminum/metal packaging as highly sustainable¹, highlighting the need for aluminum packaging producers to promote the material’s sustainability, says GlobalData, a leading intelligence and productivity platform.

Aluminum’s recyclability stands alongside other advantages such as light weight, durability, and convenience, making the metal highly relevant in modern packaging, despite the attention so often focused on recycled/recyclable plastics and sustainably sourced and managed paper and board products.

Richard Parker, Principal Consumer Analyst at GlobalData, comments:“However, while consumers globally are favourable to aluminum packaging, especially when they understand its infinite recyclability, a key problem is that a sizeable minority of them are unfamiliar with this recyclability and still hold negative preconceptions about aluminum’s sustainability.”

Aluminum cans draw on familiarity, appeal among younger consumers

According to GlobalData’s latest Hot Topic Case Study, “Aluminum Packaging Trends,” aluminum ranks second globally in beverage pack units sold, with this expected to solidify over the next five years based on consistent growth of more than 2 %, compared to slowing glass growth. Rigid plastics still lead the market, at double the size of rigid metal by unit volume, with this set to remain the case through 2030, despite slowing growth. The overall picture reflects changing beverage consumption behaviors (reducing consumption of soft drinks affecting cans and plastic bottles, alongside alcohol moderation).

A bonus for the can market in both alcoholic and non-alcoholic drinks sectors is the demand among younger consumers for ready-to-drink (RTD) solutions, and smaller format cans in categories such as hard seltzers, pre-mixed spirits/cocktails and mocktails, and functional on-the-go beverages.

Parker adds: “The visual language associated with design and branding on cans is important in an Instagram-friendly world. Cans also have a resonance with younger consumers as a recyclable choice. The single-use nature of opened cans does, however, create a convenience disadvantage versus plastic resealable bottles; the mid-ground has been the rise in popularity of reusable aluminum bottles as a desirable, sustainable accessory as well as a practical solution for on-the-go hydration.”

Deposit return schemes favour aluminum

With circular economies increasingly promoted by regulation around the world, deposit return schemes (DRS) have emerged as one of the key strategies for executing circularity. Aluminum beverage cans are, alongside recyclable PET bottles, central to DRS with their infinite recyclability giving them the sustainability edge over recyclable plastics, which generally reduce in quality over multiple cycles leading to changes in material usage and earlier end-of-life disposal.

The can industry, however, needs to ensure that its products are locally compliant with DRS requirements; in the UK for example, with DRS implementation scheduled in 2027, cans between 150 ml and 3 l will require a bar code and approved logo, and must be able to be compacted by 75 % to be compatible with reverse vending machines (RVMs).

Consumer recognition of aluminum’s sustainability a surprising problem

Despite what may seem obvious to many – aluminum’s recyclability – GlobalData survey findings show that a significant minority of consumers globally do not actually see aluminum/metal packaging as highly sustainable. In Q3 2025¹, consumers were asked if it was reasonable to see packaging as sustainable if it was made from a range of materials; only 21 % and 22 % of consumers answered positively for metals used in alcoholic and non-alcoholic beverage packaging, respectively. This was on a par with plastics, and well behind paperboard and the leader glass (50 %). This flies in the face of the reality of aluminum’s infinite recyclability and suggests consumers have a greater grasp of glass’ and paperboard’s lifecycles.

Furthermore, level-pegging with plastics suggests both a weak understanding of metal’s benefits and/or growing awareness of the increasing recyclability of modern plastic beverage containers. The lesson is that consumer education is still needed, something that can potentially be delivered in combination with DRS implementation.

Iran conflict poses particular challenge for aluminum

The unknown at present is how significant the impact of the Middle East/Iran conflict will be on 2026 and beyond; real world impacts are only just starting to be quantified, and this may ultimately lead to a revised forecast across multiple pack materials based on disruption to the flow of raw materials and finished products through the Strait of Hormuz. What is clear is that aluminum faces a direct impact given that Gulf-based primary producers account for 9 % of global output, and over a fifth of aluminum imported into the US is from the UAE and Bahrain.² Iranian strikes on key production facilities have created potential long-term systemic difficulties for the industry and sent prices globally spiralling upwards.

A market where virgin feedstocks are facing scarcity is likely to result in the maximisation of recycled content use (both for aluminum and plastic packaging). Efficiency in approach to recycled materials will be key, although price rises are also likely to be a factor here too as demand grows. Regional variations in reclamation capability and efficiency will be a factor, leading to widening supply-demand gaps.

Parker concludes: “With the present geopolitical backdrop and its very real impacts, resilient supply chains for a more uncertain world must be built, with continuity of supply stress-tested and shorter chains implemented to mitigate present and future disruptions.

“Also, packaging producers and their customers must evaluate the inconsistencies in consumers’ understanding of the material’s recyclability and educate them on its comparative advantages. This will be critical as DRS becomes a baseline internationally to limit consumers’ material switching.”

¹GlobalData 2025 Q3 global consumer survey, 21,000 respondents across 42 countries
²Exiger (2026) “Iran Strikes Gulf Aluminum Smelters, Disrupting Global Supply”, https://www.exiger.com/perspectives/iran-gulf-aluminum-strikes-supply-chain-disruption/, April 2026

Today, Lucas Bols N.V. and De Kuyper Royal Distillers, two leading global cocktail spirits companies, and Refresco Group B.V. announce that they have entered into an agreement in which alcoholic beverage manufacturer Avandis will be acquired by Refresco. As part of the agreement, Lucas Bols and De Kuyper have entered into a long-term manufacturing contract with Refresco. The transaction is subject to regulatory approval and to a Works’ Council consultation process.

Avandis, a 50/50 joint venture of Lucas Bols and De Kuyper, is a leading beverage manufacturer based in Zoetermeer, the Netherlands. They have one of Europe’s most advanced bottling facilities for distilled beverages. Avandis provides a wide range of contract manufacturing solutions to brand owners in the alcohol category. Refresco fully supports Avandis’ growth strategy.

Transaction highlights

• The transaction includes a long-term contract manufacturing agreement with both Lucas Bols and De Kuyper, allowing Refresco to invest and expand the business
• The purchase price for 100 % of the shares in Avandis amounts to EUR 25 million, to be adjusted for Avandis’ net debt position (31 March 2022: EUR 15 million) and any working capital adjustments, both as at completion date
• This transaction is subject to regulatory approval and the consultation process with the respective Works Councils
• Pending approval and Works’ Council processes, completion is expected by the end of 2022

PepsiCo, Inc. announced that it has entered into an agreement with PAI Partners to sell Tropicana, Naked and other select juice brands across North America, and an irrevocable option to sell certain juice businesses in Europe, which will result in combined pre-tax cash proceeds of approximately $3.3 billion while retaining a 39 % non-controlling interest in a newly formed joint venture. PAI, a leading private equity firm with strong experience in the food and beverage space, will be the majority shareholder of the transferred business, with PepsiCo retaining exclusive U.S. distribution rights to the portfolio of brands in its best-in-class, chilled Direct Store Delivery for small-format and foodservice channels.

“This joint venture with PAI enables us to realise significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” said PepsiCo Chairman and CEO Ramon Laguarta. “In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.”

“We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realised through investments in product innovation, expansion into adjacent categories, and enhanced scale in branded juice drinks and other chilled categories,” said Frédéric Stévenin, a Managing Partner at PAI. “We are also thrilled that PepsiCo will remain involved as our partner in the joint venture as we execute our plans to drive the future success of these brands.”

These juice businesses delivered approximately $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020. PepsiCo expects to use the proceeds from the sale of these assets primarily to strengthen its balance sheet and to make organic investments in the business. The transaction is expected to close in late 2021 or early 2022, subject to customary conditions, including works council consultations and regulatory approvals.

About PAI Partners
PAI Partners is a pre-eminent private equity firm, investing in market-leading companies across the globe. It has significant experience in the food and beverage space and is currently invested in Froneri, the world’s #2 ice cream manufacturer, and Ecotone, a leader in healthy and sustainable food. It manages around €15 billion of dedicated buyout funds and, since 1994, has completed 84 investments in 11 countries, representing over €65 billion in transaction value. PAI has built an outstanding track record through partnering with ambitious management teams where its unique perspective, unrivalled sector experience and long-term vision enable companies to pursue their full potential – and push beyond.