The highest sellers of wholesale aluminum cans worldwide have an entirely different minimum order quantity (MOQ). Ball Corporation and Crown Holdings in the United States operate with a normal MOQ of 500,000 to 1,000,000 units (cost per unit: 0.08-0.12 US dollars). ORG Technology’s MOQ in China could be as low as 100,000 pieces (at a unit price of 0.05-0.07 US dollars per piece) but with an additional 25% tariff and a shipping cycle of 30-45 days to be tolerated. Use Yuanqispring as an example. In 2022, it purchased the first 200,000 specially crafted aluminum cans (95 psi of compressive strength and 4 microns of coating thickness) from Orikin. Its unit price was 27% lower than that of Ball, but after the mold development cost was allocated to it, the unit cost increased by 0.003 US dollars. Due to the prohibitions levied by the carbon tariff (CBAM), Europe’s MOQ level at Trivium Packaging was raised to 300,000 units. However, 3 days formed the local delivery cycle and transporting goods consumed 8% (18% if shipped across an ocean).
Regional policies shape the adaptability of MOQ directly. The United States Inflation Reduction Act offers a $45-per-ton subsidy for local procurement of wholesale cans of Ball Corporation’s aluminum, encouraging MOQ reduction from 1 million to 700,000 (unit price of $0.07). For example, in 2023, PepsiCo secured a deal with 700,000 MOQs at a saving of 15% of annual purchase costs. India-based Hindalco has attracted Southeast Asian customers to increase the median order size to 250,000 units from 80,000 units by offering a discount price of 12% on orders of MOQ above 50,000 units through the “Production-Related Incentive Program” (PLI). Conversely, due to the requirement of the precise manufacturing process (with the can body thickness margin of error ±0.02 millimeters), the MOQ of Japanese enterprise Toyo Seikan is up to 500,000 cans at a price per unit of 0.15 US dollars, but the breakage ratio is only 0.3% (industry standard is 1.5%).
Technological innovation is inversely correlated with the MOQ breakpoint. In 2023, Orekin launched smart aluminum cans (NFC tag embedded), initial MOQ was 500,000 pieces at extra cost of 0.03 US dollars per unit. But if the order quantity was more than 2 million pieces, the mold cost was completely waived, and the unit cost returned to base level. The light-weight American start-up company CanO Water’s aluminum cans (8 grams per unit) have a MOQ of only 50,000 units due to the use of nano-coating technology but the unit price is as much as 0.12 US dollars. These are best for trial production in small and medium-sized brands. For example, Bubs Australia, the Australian sparkling water business, has tested the market with a purchase order for 100,000 pieces and the adaptation rate of the filling line is 98%. Shelf life has increased to 30 months.
MOQ can be reduced by platform aggregation for small and medium enterprises. Alibaba International Station statistics show that in 2023, wholesale aluminum cans median MOQ fell from 500,000 to 200,000, order fragmentation rate (single order < 100,000) rose to 35%, but unit cost increased by 19%. For instance, the aluminum craft beer company BrewDog purchased 150,000 cans of aluminum (unit cost = $0.09) with a group platform purchase, saved $12,000 in mold costs compared to single bargaining, and delivery time was decreased to 25 days (45 days through traditional means). Third-party quality inspection report by QIMA indicates that variation rate (standard deviation) of qualified rate of tank size for MOQ orders less than 100,000 is ±1.2% (±0.5% for MOQ orders greater than 500,000), and it results in a 1.5% increase in filling loss rate.
The certification mechanism is closely related to MOQ. The MOQ of Ball Corporation’s ISO 15378 medical-grade aluminum cans is one million units, but the precision of coating thickness (3.2±0.3 microns) aligns with the filling line parameters with an error rate of below 0.1%, and the customer return rate is just 0.5% (industry average: 2%). The EU EcoVadis gold-certified Trivium Packaging requires more than 300,000 MOQ. But its 73% recycled aluminum products reduced customers’ ESG compliance cost by 12%. For example, the Dutch brewing company Heineken has reduced its carbon footprint by 18% by ordering 500,000 MOQ. On the other hand, for small and medium-sized manufacturers, the customs examination rate of the 50,000 MOQ order has risen from 3% to 15% due to the lack of BRCGS certification, and the chances of customs delay in clearance have risen by 40%.