Secondary Aluminium Market by Source of Aluminium (Post-Consumer Scrap and Industrial Scrap), by Alloy Type (Cast Aluminium Alloys and Wrought Aluminium Alloys), by Purity Level (High Purity Aluminium and Standard Purity Aluminium), and End User (Transport, Consumer Goods, Machinery & Equipment, Construction, Foil and Packaging, Electrical Engineering, and Other End User) – Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The global Secondary Aluminium Market size was valued at USD 96.87 billion in 2023 and is predicted to reach USD 160.53 billion by 2030 with a CAGR of 6.8% from 2024-2030. Secondary aluminium refers to aluminium that is produced through the recycling and reprocessing of aluminium scrap rather than being extracted directly from bauxite ore using primary aluminium production methods.

The process of obtaining secondary aluminium typically involves collecting aluminium scrap from discarded products, manufacturing waste, and other sources. This scrap is then melted in a furnace where impurities are removed to produce recycled aluminium.

Recycled aluminium offers a range of advantages, making it a sustainable and resource-efficient material. This provides less carbon emissions and waste reduction which contributes to lower overall environmental impact.

Additionally, the use of secondary aluminium promotes a circular economy by extending the life cycle of the material and reducing the overall demand for new primary aluminium production.

Market Dynamics and Trends

The increasing governmental efforts to reduce carbon emissions and promote sustainability are encouraging industries to embrace secondary aluminium. This compliance motivates businesses to integrate recycled materials into their operations, aligning with eco-friendly practices. 

For instance, in February 2024, Bureau of International Recycling initiated the Global Recycling Foundation (GRF) which aims to utilize artificial intelligence (AI) technology to advance the recycling industry. This initiative aims to enhance efficiency in sorting and processing recyclable materials, including secondary aluminium, leading to increased sustainability and resource conservation in the secondary aluminium market. 

Also, the increasing demand for recycled aluminium in the automotive and transportation industries to produce items such as aluminium sheets and alloys is fueling growth in the secondary aluminium market.

According to the International Aluminium Institute (IAI), the global Recycling Efficiency Rate (RER) of aluminium is currently 76% which accounts for the total amount of recycled aluminium produced annually from new scrap and old scrap. The transportation sector recycles the highest proportion of aluminium products, accounting for 86% of total aluminium materials recycled.

However, the availability and competitive pricing of alternative materials including steel and plastic affect the demand for secondary aluminium is further hindering the market expansion. On the contrary, the integration of robotics and automation solutions into secondary aluminium facilities to streamline operations such as material handling, sorting, and processing is expected to create ample growth opportunities for the market. Automated systems improve productivity, reduce labor costs, and enhance workplace safety.

Market Segmentation and Scope of Study

The secondary aluminium market is divided based on the source of aluminium, alloy type, purity level, end user, and region. Based on the source of aluminium, the market is divided into post-consumer scrap and industrial scrap.

Based on alloy type, the market is categorized into cast aluminium alloys and wrought aluminium alloys. Based on purity level, the market is segmented into high purity aluminium and standard purity aluminium.

Based on end users, the market is segmented into automotive, aerospace and defense, building and construction, packaging industry, electrical utilities, and other end users. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the dominating share of the secondary aluminium market at present and is expected to continue its dominance throughout the forecast period. This is attributed to factors such as the growing production of secondary aluminium among developed countries such as China, India, and Japan.

According to a report published by Japan Aluminium Association, the total amount of secondary aluminium production is recorded at 669.8 thousand metric tons in the year 2023 with a growth of 0.8% as compared with 664.8 thousand metric tons in 2022.

Also, the growing automotive sector in the Asia Pacific, particularly in countries such as China and India, is propelling the growth of the secondary aluminium market. This material is preferred for vehicle manufacturing due to its lightweight, durable, and environmentally friendly properties.

According to the International Trade Administration, China is the largest automotive vehicle producer with domestic production expected to reach 35 million automotive vehicles by the year 2025. With the rise in automotive production, the demand for secondary aluminum also grows, playing a significant role in the automotive sector's progress.

On the other hand, North America is considered the fastest growing region in the secondary aluminium industry, propelled by countries such as the United States and Canada. Their robust emphasis on metal recycling, particularly aluminium, acts as a significant driver for the market's expansion in the region.

According to the International Aluminium Institute (IAI), 57% of the total aluminium metal produced in North America originated from scrap materials making it the highest Recycling Input Rate (RIR) in the world.

Moreover, the presence of key market players including Novelis Inc. and Alcoa Corporation that are adopting various business strategies including investment and business expansion is boosting the market growth in the region. These companies play a crucial role in driving advancements, innovation, and market expansion within the secondary aluminium sector in North America. 

For instance, in October 2022, Novelis Inc., the U.S. subsidiary of an India-based secondary aluminium material producer announced an investment of USD 2.5 billion for installing a new secondary smelter in Alabama. This facility aims to produce 600,000 tons of aluminium annually and is designed to be the first fully integrated aluminium mill built in the U.S.

Competitive Landscape 

Various players in the secondary aluminium market include Alcoa Corporation, Audubon Metals LLC, State Metal Industries, Superior Aluminium Alloys, Eccomelt, Romco Metals, Aluminium Recovery Technologies, Latem Aluminium, Grupo Otua, Hindalco Industries Limited, and others. These market players are opting for various strategies such as collaboration to maintain their dominance in the global secondary aluminium market.

For instance, in April 2022, Alcoa collaborated with MMG Aluminium to recycle scrap aluminum metal from aluminum chips and briquettes. It installed an induction furnace that efficiently melts these briquettes for blending with the smelter’s low-carbon aluminum and various alloying materials, depending on the end-use applications.

Key Benefits

• The report provides quantitative analysis and estimations of the secondary aluminium market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future secondary aluminium market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the secondary aluminium market is provided in the report.

• A competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porter's Five Forces model are elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Secondary Aluminium Market Key Segments

By Source of Aluminium

• Post-Consumer Scrap

• Industrial Scrap 

By Alloy Type

• Cast Aluminium Alloys

• Wrought Aluminium Alloys

By Purity Level

• High Purity Aluminium

• Standard Purity Aluminium

By End User

• Transport

• Consumer Goods

• Machinery & Equipment

• Construction

• Foil and Packaging

• Electrical Engineering

• Other End User

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Vietnam 

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

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