Written on: October 6, 2020 by SprayTM
Moderate decrease of roughly 2% worldwide in the first half of 2020
The International Organization of Aluminum Aerosol Container Manufacturers (AEROBAL) recorded a relatively moderate decline in the global production of aluminum cans of almost 2% for the first half of 2020 despite the COVID-19 pandemic. Compared to most other industrial sectors, the industry is doing relatively well in a global comparison.
Gregor Spengler, Secretary General of AEROBAL, is quite satisfied with the half-year results of the member companies, commenting, “The very moderate decline represents a rather good result in view of the highly insecure markets with extremely cautious customers and consumers. Under the impression of the COVID-19-related lockdowns and restrictions in public life with all their consequences for consumption, we would have expected worse results.
“Instead, especially in this crisis, the value of a reliable and safe packaging material—such as the aluminum aerosol can, which industry and consumers alike trust—has been impressively demonstrated. In addition, our member companies have remarkably proven their convincing performance and delivery capabilities under extremely difficult conditions.”
Regardless of this, the greatly changed consumer behavior caused by COVID-19 has left its mark on markets that are important for the industry. Lower consumer incomes and fears for the future have caused the demand for high-priced personal care products to shrink. The imposed curfews and reduced contact in professional and social sectors have resulted in lower demand for products such as deodorants and perfumes, hair care and other personal care products. This noticeable decline in the wide-ranging personal care market could not be offset by the boom in disinfectants and similar hygiene products.
With regard to the regional sales markets, the markets in Asia and Oceania were particularly weak in a global comparison in the first half of 2020. In contrast, the markets in Europe only declined slightly. Demand in North and South America remained largely stable, while the Middle East even posted slight gains.
A reliable forecast of the further development of the global markets for aluminum aerosol cans is extremely difficult given the still rampant COVID-19 pandemic. Most brand owners find it difficult to make reliable forecasts due to the challenging international market environment. Most of the can manufacturers and their customers, however, expect a further decline in demand in the second half of the year.
AEROBAL President Leopold Werdich shares this view, and despite all the adversity, has nevertheless identified a positive development for aluminum aerosol cans.
“Regardless of the COVID-19 pandemic, the strong trend towards sustainable packaging solutions is unbroken,” said Werdich.
“Even in times of COVID-19, the climate crisis is omnipresent. Legislators around the world have accordingly tightened environmental regulations and recycling quotas. In addition, major brand owners have committed themselves to ambitious sustainability goals. With numerous innovations, AEROBAL members provide concrete examples that valuable aluminum aerosol cans have advantages over many other packaging materials in terms of sustainability. Therefore, I hope that, due to these developments, more stability will come into our markets again from next year and that there will be improved planning security for can manufacturers.”
How important the aspect of sustainability is to the aluminum aerosol can industry is also underlined by the fact that in 2020 AEROBAL added a new “Sustainability” category to its annual “World Aluminum Aerosol Can Award”.
Head of Packaging at Gesamtverband der Aluminiumindustrie e. V. (GDA)
AEROBAL Secretary General