Aluminium prices might be rising, but your favourite canned drinks are staying cool under pressure, thanks to recycling.
Just this month, the US announced steep new tariffs: a 50 per cent tax on all imported steel and aluminium, doubling the 25 per cent rate introduced in February.
While that’s a big hit for many industries relying on imported metals, the beverage can sector is staying refreshingly resilient.
So, what’s the secret? Recycled aluminium.
“Unlike many other industries that rely significantly on metal imports, beverage can manufacturers in the US obtain a considerable share of their raw materials from recycled sources,” explains Rory Gopsill, senior consumer analyst at GlobalData.
In fact, more than 70 per cent of the aluminium used in US beverage cans comes from recycled content, according to The Aluminium Association. That means manufacturers are less vulnerable to the rising costs tied to import tariffs.
Out of an estimated 99.6 billion aluminium cans expected to be sold in the US this year, roughly 70 billion are made from recycled aluminium, leaving only 30 billion more exposed to tariff-driven price hikes.
The upside? More incentive to go circular.
Recycled aluminium isn’t just a clever cost-saving move, it’s also far greener. Producing aluminium from recycled material uses 95 per cent less energy than making it from scratch.
That makes it an environmental and economic win-win for can makers. With tariffs adding pressure, there’s even more motivation to scale up US-based aluminium recycling.
Still, the tariff terrain isn’t entirely smooth. Moving recycled materials across borders can get complicated. Only shipments that meet the rules of the US-Mexico-Canada Agreement (USMCA) are exempt from these taxes, meaning some recyclers may feel the squeeze.
“In a volatile economic climate, where global supply chains are increasingly politicised, the beverage can sector’s embrace of recycled aluminium stands out as a model of resilience,” Gopsill adds.
“By leveraging domestic, sustainable materials, the industry not only reduces environmental impact but also cushions itself from macroeconomic shocks, proof that circularity and competitiveness can go hand in hand.”