NEWS Page 1/2 It's Aluminum's Time to Shine

NEWS

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It’s aluminum’s time to shine

30.07.2019 - The bottled water market is in a trans- generational groups. The vilification of plastic bottles formational period. Currently, most mass market represents an opportunity for beverage brands to el- consumers are not especially worried about the en- evate the simple aluminum can. vironmental impact of plastic water bottles; nearly four in 10 consumers would not pay anything more The benefits of aluminum for water packaged in an environmentally friend- Aluminum cans offer compelling environmental ben- ly plastic alternative, according to Mintel research efits; they’re lightweight, durable, have a high recy- on still and sparkling water. However, a growing cling rate, due in part to the financial incentive of conversation around the environmental impact of recycling cans, and are nearly infinitely recyclable. single-use plastic bottles represents an existential Aluminum does come with drawbacks; processing threat to the entire bottled water market. raw aluminum into usable materials is a highly energy intensive process. However, it’s estimated that 75% of all aluminum ever produced in the US is still in use today and reusing aluminum requires only 5% of the energy used compared to processing raw aluminum.

While aluminum is a sustainable packaging solution, consumers are largely in the dark on aluminum’s environmental benefits. Only one in 10 consumers per- ceive aluminum cans as a packaging option that pro- vides a positive environmental impact, according to

skeeze/ Pixabay Mintel research on beverage packaging trends. The ubiquity of the can is detrimental to its sustainability symbol image credentials in consumers’ minds as consumers don’t understand aluminum’s environmental benefits and Consumers are beginning to rethink their use of because it is so familiar they don’t view cans as any- plastic water bottles, with Gen Z in particular, exhibit- thing special. The onus lies with brands and pack- ing strong interests in environmentally-friendly plas- aging manufacturers to educate consumers on alu- tic bottle alternatives or eschewing packaged water minum. entirely. Nearly seven in 10 Gen Z consumers use refillable water bottles, the highest usage among all Page 1/2

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Brands are putting the pedal to the metal Consumer interest in environmentally-friendly beverage packaging will undoubtedly grow especially Companies have started touting aluminum’s envi- as Gen Z ages and gains more disposable income. ronmental benefits. In April 2019, actor Jason Mo- Packaged water brands need to focus on sustain- moa shaved his signature beard to promote Man- ability or risk the ire of Gen Z consumers. analu, a new water brand packaged in 16.9 oz tallboy cans. Contrarian water brand Liquid Death also uses tallboy cans for their environmental benefits. Pathwater utilizes an aluminum bottle which consumers can reuse as a refillable water bottle. Large beverage companies are also gauging consumers interested in canned water. PepsiCo announced it would test-market canned Aquafina early in 2020.

In addition to aluminum, companies are exper- imenting with other sustainable packaging solutions. Nearly every major beverage company has promised to increase its use of recycled plastics (known as rPET) in the production of plastic bottles. Creating plastic bottles from recycled materials is highly popular among consumers as nearly two-thirds of consumers say beverage companies should incorporate recycled plastics as a way to off- set the use of plastic bottles, according to Mintel research on beverage packaging trends.

Companies are also developing solutions that go beyond the bottle. Both Coca-Cola and PepsiCo created Dasani and Aquafina-branded water refill stations that allow consumers to add carbonation and flavorings. PepsiCo highlights the environmental benefits of SodaStream (acquired in 2018 for $3.2 billion) in much of the product’s marketing.

What Mintel thinks:

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