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© Copyright 2017 Beroe Inc. All rights reserved. Developing markets boost beverage can sourcing
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Category Intelligence on Beverage Cans

Apr 08, 2017

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Page 1: Category Intelligence on Beverage Cans

© Copyright 2017 Beroe Inc. All rights reserved.

Developing markets boost beverage can sourcing

Page 2: Category Intelligence on Beverage Cans

2

Table of Contents (1/2)

01Executive Summary

• Executive Summary

02Market Analysis

• Value Chain Analysis• Global Market Outlook– Current market size – Demand-Supply trends and forecast– Key end use industries– Trade dynamics

• Regional Market Outlook [USA, Europe & Asia]– Current market size – Demand-Supply trends and forecast– Trade dynamics

03Industry Analysis

• Industry Outlook [NA, Europe, SA & Asia]– Drivers and Constraints for the industry– Mergers & acquisitions– Innovations– Porters Five Forces Analysis

Page 3: Category Intelligence on Beverage Cans

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Table of Contents (2/2)

04Cost Analysis

• Cost Model for Aluminum beverage cans

05Supplier Analysis

• Mergers and Acquisitions• Capacity Expansions• Supplier market share – global• Regional Capacity Share• Key global and regional suppliers• Key supplier’s capability analysis– Capacity– Product Portfolio

• Detailed supplier profiling of the top global suppliers– SWOT Analysis for the top 5 global

suppliers– Financial Risk for top global suppliers (if

publicly listed)

06Industry Best Practices

• Industry Best sourcing practices for Aluminum Beverage Cans

Previous Slide

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Page 5: Category Intelligence on Beverage Cans

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Executive Summary (1/4)

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

MARKET OVERVIEWGlobal market size –

329 Billion Units (2015)Expected to grow at a CAGR of 3-4% to 391

Billion Units by 2020

Key Growth RegionAsia (114 billion units, 35 percent) is expected grow at 4-5 percent CAGR, to 139 billion units in 2020

Supply Base for Beverage cans

Concentration High Medium Low

Key TrendsSustainability: Increased use of recycled content has improved the sustainability of cans

Printing & Decoration: Advanced shaping and functional printing techniques such as photochromic and tactile effects are increasingly adopted

Key Developments• Ball has merged with Rexam to form the worlds largest supplier with 31

percent market share• Ardagh has expanded into the beverage can segment through the

acquisition of the divested assets from Ball-Rexam merger to become the third largest supplier with 9 percent market share

Emerging Markets Middle East, India, China, LATAMSupply base is fairly fragmented with participation of regional suppliers

Developed Regions – NA, EuropeThe top four global players have more than 80% of the market shareBrand owners are integrated into can manufacturing

COST BREAKUP – BEVERAGE CANS

Raw Material Cost

38-40%

Conversion Cost

35-40%

Fixed & Overhead Cost

8-10%

Printing Cost

5-10%

Labor Cost

1-2%

TOP GLOBAL SUPPLIERS MARKET SHARE 2015

Ball Corporation

31%

Crown Holdings

18%

Ardagh Group

9%

Can-Pack

4%

Globally, the supply base is consolidated with the top three suppliers holding about 60 percent of the market share.

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Executive Summary (2/4)

Supplier Maturity LowMediumHigh

01

• Global beverage can market is expected to grow at 3-4 percent CAGR during 2015-2020, to reach 391 billion units driven by the increasing consumption of CSD and beer in the developing markets like China, Middle East, India, etc.; the slow down in the consumption of CSD in NA and EU would be compensated by the increased consumption in the emerging markets

• Specialty cans (slim) are expected to experience the highest growth of about 8-10 percent CAGR over the next five years owing to increasing penetration in energy drinks, premium water, juices, RTD beverages, etc.,

KeyTakeaway

05

06

01 North America

113 billion units growing at 2-3 percent

04 Asia

98 billion units growing at 4-5 percent

05 Middle East & Africa

19 billion units growing at 4-5 percent

02 Europe

68 billion units growing at 2-3 percent

03 LATAM

29 billion units growing at 3-4 percent

06 Australia

2 billion units growing at 2.5 percent

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

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Executive Summary (3/4)Regional Demand Overview

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

Regions Regional Supply

Capacity Additions Buyer power Demand Trends

(2015-2020)Top Regional

Suppliers Key Supply Base Trend

NABeer: CAGR: 2-3 percentCSD: CAGR: -1-0 percentEnergy Drinks: CAGR 4-5 percent

• Ball• Crown• Ardagh

Suppliers are focusing on boosting the recycling rates to facilitate sustainability.

EUBeer: CAGR: 1-2 percentCSD: CAGR: -1-2 percentEnergy Drinks: CAGR 3-4 percent

• Ball• Crown• Ardagh

Supply base is consolidated with suppliers looking to improve recycling rates.

AsiaBeer: CAGR: 5-6 percentCSD: CAGR: 1-2 percentEnergy Drinks: CAGR 9-10 percent

• Ball• Crown• Pacific Can

Suppliers are investing to enhance production capacity to supply local demand.

SABeer: CAGR: 2-3 percentCSD: CAGR: 2-3 percentEnergy Drinks: CAGR: 6-7 percent

• Ball• Crown• Ardagh

Reduced consumption would lead to suppliers reducing their production costs.

• The maturing consumption of beer and CSD in developed markets and increasing consumption in the emerging markets have led to the expansion of manufacturing facilities in countries such as Myanmar, Thailand, UAE, Cambodia, India, etc.,

High

High

High

Low

High

Medium

High High Medium–High

Medium–High

Medium

Medium

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Executive Summary (4/4)Countries of Focus

The highlighted countries are the most prominent production locations for beverage cans in each region. Developed markets have matured supply base and technological advancements and emerging markets have high growth potential driven by increasing consumption.

Developed

Emerging

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

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