The price of beverage cans are highly affected by different aspects such as: material costs, production procedures and market demand. A big part of the cost is aluminum, which naturally it several be manufactured from. The effects are based on world-wide market conditions and the rolling prices fare between USD 1800 to approximate $2,200 per metric ton. This, in-turn affects the manufacturing costs of beverage cans.
Costs are also influenced by production efficiency. Efficient high-speed can-making lines could result in as many as 2,500 cans being made per minute-which would create a huge reallocation of labor and energy. Automation on these lines reduces almost all costs, and therefore savings that are usually passed to the end consumer. As an example, a new canning line could allow the bulk cost at scale to drop as low as $0.05-$0.10 per can produced based on size and technology.
Design and finish make it expensive. Lithography is cheaper for large runs, as this technique offers economical solution because of enormous printing procedure. Despite its inherent flexibility, digital printing is more expensive per unit and can run $0.02o-$0.05n additional costs for each printed (!) toggle/can. Since embossing, special inks and shrink sleeves also increase the costs seemly about $0.01-$0.03 per can for embossed cans; with wrap labels ($ 3/sq ft) around + $0.05 - $ 0.10/ units(additional amount varies based on design specifics).
Costs are affected by environmental factors and sustainability efforts. Initial costs are generally larger for companies with sustainable practices, like those which employ recycled aluminum instead of regular (or vegetable-based water inks vs solvent based). Still, they benefit long-term savings and an equally long-term positive brand perspective. This has a big impact on cost structures since recycled aluminum can be as much as 20%-30% cheaper than new.
There is also transport and logistics clearence. The weight of beverage cans declined by as much as 30% over recent decades thanks to lightweighting efforts that have driven down transportation costs. It also depends on how far beverages must be shipped, and the price of fuel (typical shipping-in costs range approximately $0.01 -$.03/can).
This includes but is not limited to market demand and economic conditions. When production and raw material demand are higher, prices rise due to high surge in the market requirements during summer or major sporting events. Likewise, as demand decreases and raw material prices fall so might prices during an economic downturn.
According to Robert Graves, an industry analyst: "The cost of beverage cans is a dynamic interplay between material costs, production efficiencies and market demand. Citing example of the beverage can industry, he noted that pricing was a complex issue.
Some of these expenses can be offset with technology investments. Operational costs are cut down with energy-efficient production lines as well as automated quality control systems. Energy savings can reduce total production expenses by up to 15%, which would help increase competitive prices due in part from modern machinery.
Costs are Effectively Managed by Economies of Scale Big manufacturers will haggle better deals in materials purchasing, and also realize lower per-unit costs by producing en masse. This potentially could result in higher costs, which probably would manifest into retail prices of the end product.
Thus, the costs of beverage cans have to be broken down and considered in terms of these many considerations and how they interrelate. In this paper, raw material prices and production efficiencies, environmental practices along with market demand all impact the final cost of producing Beverage Cans.