Demand for aluminium tubes and aerosol cans not expected to pick up

Manufacturers of aluminium tubes and aerosol cans in Germany do not expect demand to pick up until the third quarter of 2021, according to the Gesamtverband der Aluminiumindustrie eV (GDA), an association of German aluminium companies.

However, GDA says demand for aluminium tubes last year declined only slightly by around 1%, as good demand from pharmaceutical and food sectors almost offset the decline in demand for cosmetic products. Deliveries of aluminium aerosol cans to Germany fell by around 9% due to lower sales in the core market of deodorants. Despite the keen demand for disinfectants in the first quarter of 2020, the industry was not able to compensate for this decline. Nevertheless, the overall result in 2020 is still moderate compared to other end-use markets in the aluminium industry.

“Due to the ongoing pandemic, the slow start of vaccinations and the associated restrictions for the population in Germany and Europe-wide, the market situation is expected to remain difficult until the middle of the year”, said Johannes Schick, chairman of GDA’s Division for Tubes, Cans and Impact-Extruded Parts.

In particular, demand from the cosmetics market will continue to suffer from the mobility restrictions, as shops in the cities will be closed at least until mid-February and other important sales channels such as duty-free shops in airports are also shut down. A sustained upturn in the market is only expected from the third quarter of 2021. Until then, the association says the market situation will remain erratic.

The recyclability of packaging will play an even more important role in 2021, according to GDA. The current recycling rate for aluminium packaging in Germany is 93.2%. The growth potential for aluminium packaging in the German packaging market is considerable because it currently only accounts for around one per cent of total packaging consumption in Germany. Coupled with the outstanding protective performance of aluminium, which efficiently prevents product spoilage and loss, an ecologically convincing overall package is delivered. Aluminium packaging is therefore fully in line with the EU Commission’s Green Deal approach for more resource efficiency and sustainability.

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