The grade of aluminum in cans plays a significant role in manufacturing cost depending on composition, processing efficiency, recyclability, and global market trends. 3004 and 3104 are the most widely used aluminum alloys for beverage cans with 95% to 98% aluminum, 1.0% to 1.5% manganese, and 0.8% to 1.3% magnesium. They possess the ideal combination of strength, weight reduction, and economy, making them the first choice of manufacturers.
Raw material prices have a direct relationship with manufacturing costs. At current market updates, aluminum is around $2,200 to $2,800 per metric ton, subject to variations caused by supply chain dislocations, fuel prices, and demand from automotive and aerospace industries. Since the average 12-ounce can of aluminum will weigh approximately 13.5 grams, raw aluminum per can costs about $0.03 to $0.04 depending on global metal prices.
Aluminum alloy production also contributes to cost of production. Deep drawing and ironing (D&I) operation to form beverage cans requires one that will maintain high formability and reduce breakage rates. The wall thickness of modern cans ranges from 0.097 mm to 0.115 mm, being 30% thinner than the 1970s’ cans. This reduction in material usage saves manufacturers millions of dollars annually, since it requires much less metal to produce a single aluminum can today than with earlier designs.
Recyclability is another significant cost-saving factor. More than 70% of aluminum cans are recycled globally, and recycling aluminum saves 95% of the energy consumed in primary aluminum production. Major manufacturers like Ball Corporation, Crown Holdings, and Ardagh Group rely on recycled aluminum to conserve overall cost. Recycling an aluminum can to a new one within 60 days guarantees material price stabilization and reduced reliance on costly virgin aluminum.
Coating technology also influences costs. Beverage cans require an internal polymer coating to prevent corrosion and metal leaching, particularly for acidic drinks like carbonated sodas and fruit juices. Traditional BPA-based epoxy resins have been widely used, but recent shifts toward BPA-free alternatives increase production expenses. Newer coatings, such as polyester-based linings, cost 5% to 15% more than traditional materials, impacting the final price of beverage packaging.
Industry innovation and market demand continue to drive cost factors. Over 200 billion aluminum cans are manufactured globally every year, and manufacturers keep investing in lightweighting technology to reduce material usage. The discovery of high-strength aluminum alloys allows companies to produce thinner yet stronger cans at lower raw material cost while maintaining durability.
The type of aluminum selected for beverage cans must balance affordability, sustainability, and performance. A switch to lower-grade aluminum would reduce costs but compromise structural integrity and recyclability, leading to potential product failures and increased environmental impact. More details on what type of aluminum is used in beverage cans can be found at what type of aluminum is used in beverage cans.