The business of aluminium beverage cans has emerged as a highly scalable and eco-friendly venture in the global packaging industry. With the rapid increase in consumption of soft drinks, energy drinks, ready-to-drink juices, and alcoholic beverages, aluminium cans are now the preferred choice for beverage companies due to their lightweight, recyclability, and extended shelf life. As the demand for sustainable packaging grows, aluminium beverage cans offer entrepreneurs a golden opportunity to enter a booming sector with long-term profitability and export potential.
India’s beverage packaging market is expanding at a CAGR of over 5.4%, and the market for aluminium cans is a significant contributor. Giants like Coca-Cola, PepsiCo, Red Bull, and several Indian startups prefer aluminium packaging due to its convenience and environmental benefits. Whether you’re looking to set up a manufacturing unit or invest in a contract packaging facility, the business of aluminium beverage cans offers high margins, scalable operations, and a future-proof market.
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Why the Business of Aluminium Beverage Cans Is Profitable
The business of aluminium beverage cans is profitable due to several factors:
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High demand from the beverage industry (soft drinks, juices, beers, energy drinks)
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Eco-conscious consumers preferring recyclable packaging
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Durability and transport-friendliness of aluminium cans
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Growing export demand from Asia-Pacific, Middle East, and Europe
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Support from government initiatives like Extended Producer Responsibility (EPR) and Swachh Bharat
Aluminium is 100% recyclable without loss in quality, which makes this business sustainable and future-ready.
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1. Market Scope and Demand Overview
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India consumes over 20 billion beverage cans annually
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Aluminium can market is expected to surpass ?4,000 crore by 2027
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Recyclability rate of aluminium is over 90%, making it a preferred material
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Growing trend of ready-to-drink (RTD) beverages and premium drinks in cans
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Export market potential: UAE, Bangladesh, Nepal, African countries
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2. Investment Required for Aluminium Can Manufacturing Unit
Component | Estimated Cost (INR) |
---|---|
Land & Factory Setup (30,000+ sq. ft.) | ?1 – ?2 crore |
Aluminium Sheet Rolling Line | ?2 – ?3 crore |
Cupper Press and Bodymaker Machine | ?4 – ?6 crore |
Trimmer, Necking & Flanger Units | ?1.5 – ?2.5 crore |
Inside Coating and Printing Line | ?2 – ?4 crore |
Curing Oven and Packing Line | ?1 – ?1.5 crore |
Utility Equipment (Compressor, ETP) | ?50 – ?70 lakh |
Working Capital | ?1 – ?2 crore |
Total Investment: ?12 crore to ?20 crore
ROI: 18–25% annually depending on capacity
Break-even: Within 3–4 years
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3. Types of Aluminium Cans You Can Produce
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Standard 250ml and 330ml cans (used for soft drinks and beer)
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Sleek 180ml energy drink cans
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500ml and 1L large-sized cans
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Aerosol-type aluminium containers for deodorants or sprays (diversification)
You can also offer printed cans as OEM for beverage companies or produce plain blanks for third-party printers.
4. Raw Materials Required
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Aluminium Coil (Sheet stock): Main raw material for cup making
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Lacquers and Inks: For inner coating and exterior branding
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Pull tabs and ends (lids): With ring-pull mechanisms
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Lubricants and gas (for forming process)
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Packaging Materials: Cardboard trays, shrink wrap
Most raw materials can be sourced domestically, or imported from China, UAE, or Europe.
5. Manufacturing Process of Aluminium Beverage Cans
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Sheet Feeding & Cup Making: Aluminium coil is fed into a cupping press
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Body Forming: Cups are drawn and ironed into long cylindrical can shapes
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Trimming & Necking: Height is trimmed; top portion is necked for lid
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Washing & Drying: Cleaned to remove any lubricant or particles
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Inside Coating: Special lacquer is sprayed inside and cured
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Outside Printing: High-speed rotary offset printing for brand labels
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Curing & Drying: High-temperature ovens to cure ink and coating
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Lid Seaming: Cans are fitted with pull-tab lids (after beverage filling)
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Packing & Palletizing: Cans are shrink-wrapped or tray-packed
Read our Book Here: The Complete Technology Book on Aluminium and Aluminium Products
6. Licensing and Registration Needed
To start the business of aluminium beverage cans, you’ll need:
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MSME/Udyam Registration
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Factory License and Pollution Control NOC
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FSSAI (if filling with beverages as a co-packer)
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GST Registration
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Fire Safety and Electrical Clearance
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ISO 9001 and ISO 22000 for quality and food safety (optional)
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BIS certification for raw materials (if required)
For exports, obtain IEC code and comply with destination country labeling laws.
7. Clientele and Target Market
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Beverage manufacturers (Coca-Cola, Pepsi, Paper Boat, Bira, Kingfisher)
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Bottling companies and co-packers
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Energy drink brands (Red Bull, Monster, Tzinga)
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Export buyers for plain/printed cans
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Craft beer and RTD beverage startups
8. Marketing and Distribution
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Participate in packaging expos and food & beverage trade shows
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Register on IndiaMART, TradeIndia, Alibaba for B2B buyers
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Offer custom printing services for beverage startups
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Tie-up with regional beverage bottlers for bulk orders
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Leverage green packaging trend in your brand messaging
9. Challenges and How to Overcome Them
Challenge | Solution |
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High capex | Consider leasing equipment or JV with a beverage brand |
Raw material price fluctuations | Secure long-term aluminium contracts |
Regulatory compliance | Hire legal consultant for EPR and food safety |
Need for constant bulk orders | Diversify into aerosol or food-grade containers |
10. Future Scope and Expansion
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Start co-packing RTD juices or cold brews in your own cans
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Expand into bi-metallic cans or eco-friendly variants
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Sell printed cans as a value-added service
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Collaborate with brewery chains and startups
Conclusion
The business of aluminium beverage cans is booming with the rising demand for sustainable, transport-friendly, and consumer-preferred packaging solutions. Though capital-intensive, this business offers strong margins, repeat demand, and global scalability. With the right technology, regulatory setup, and partnerships, you can build a successful venture in one of the fastest-growing segments of the packaging industry.
If you need information about the Business of Aluminium beverage cans, then contact NPCS. The project report from Entrepreneur India enables you to choose a profitable project for investing. If you are thinking about starting a business, one of the first things you should do is contact NPCS. They offer a range of services that can help you get your business off the ground, including project management, feasibility studies, and market research. Now is the time to do it. NPCS can help you get started.
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