how do 500ml aluminum cans compare to other sizes in cost?

The use of aluminum in a 500ml tank of 500ml aluminum cans is 13.2-14.5 grams, that is, 35% higher than that in a 330ml tank (9.8 grams), but the unit capacity cost of aluminum is 18% lower. Based on the 2023 LME aluminum price of $2,300 / ton, the single can material cost of 500ml is $0.03 and that of 330ml is $0.022, but the per-liter beverage cost of aluminum for the former is $0.06 and the latter is $0.067, which implies an 11.6% improvement in large capacity tank material efficiency. Ball Corporation production data show 500ml tank running at press line speed of 2,200 cans/minute, 21% lower than the 250ml tank (2,800 cans/minute), but for single-line daily production, it is 37% higher due to capacity fluctuation.

Mold manufacturing costs have great economies of scale, the mold life of 500ml cans reaches 120 million times, 50% greater than for 150ml cans (80 million times), and the one-time stamping cost distribution decreases to $0.00015 / can. Oregin Technology places the amortized cost of the mold to produce 1 million 500ml cans at $450, while 1 million 330ml cans cost $680, a 51% difference. During the printing process, the unit area of the 500ml tank (320 cm²) is 1.3 times that of the 330ml tank (245 cm²), but the unit area cost of the automatic six-color printing line increases by merely 8%, and the total cost of single tank printing is still 15% lower than that of the small tank at $0.012.

The logistics cost advantage is huge, the standard 40-foot container can carry 38,400 cans of 500ml, and the volume utilization rate is 92%, and that of 330ml can is increased to 52,800, but the unit transportation cost of beverage per liter is 0.0023 US dollars/liter for 500ml cans. 18% lower than 330ml cans ($0.0028 / l). Coca-Cola’s European shipping data show that the loss rate of 500ml cans is 0.08%, less than 0.15% for 150ml cans, and the improvement of stacking stability has reduced the annual loss by $1.2 million.

The market pricing strategy improves the cost advantage, and the terminal retail price of 500ml cans is generally $1.5-2, which is 25% premium to 330ml cans ($1.2-1.5), but the unit capacity price is 16.7% lower. The 58% gross margin on 500ml beer cans, which was 9 percentage points higher than 250ml cans, recorded the highest level of AB InBev’s 2022 financial reports. On the recycling side, due to the high quality standardization of the 500ml aluminum cans, sorting equipment’s processing rate is up to 3,200 cans/min, 40% greater than that of the shaped tank, and energy consumption of purification of recycled aluminum is reduced to 1.2kWh /kg, 22% less than the 200ml tank.

The internalization trend makes the imbalance worse, and on the EU carbon tariff system, the carbon price of a 500ml container is 0.005 euros, a paltry 62.5% of a 150ml container (0.008 euros). Japan Daiwa tank lightened 500ml tank weight from 14 grams to 12.5 grams through lightweight technology, reducing the life cycle carbon emissions of a single tank from 38 grams of CO₂ to 32 grams, which is down by 15.8%, whereas 330ml tank only managed 9% reduction in the same time period. According to statistics of the China Beverage Industry Association, the market share of 500ml canned beverages rose from 41% in 2018 to 57% in 2023, and the effect of scale drove the average yearly decline of 2.3% in the cost of producing a single can.

The elastic manufacturing system further optimizes the cost structure as well, and Crown Holdings’ smart manufacturing line can complete the conversion of 330ml to 500ml tank sizes in 15 minutes, and conversion loss is reduced from traditional 3,000 cans to 400 cans. According to the annual output of 500 million cans, the total OEE (equipment comprehensive efficiency) of the 500ml aluminum cans production line is 91%, 13 percentage points more than that of the multi-specification mixed production line. Carlsberg estimates that focusing on the production of 500ml cans can reduce overall annual costs by 7.2% and enhance customer order fulfillment rates from 88% to 96%.

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