German aluminum aerosol manufacturers expect demand to pick up in 3Q

Written on: February 1, 2021 by SprayTM

Calling 2020 a year that gave the industry a “black eye,” the German Aluminum Association (Gesamtverband der Aluminiumindustrie e. V. [GDA e. V.]) reported aluminum aerosol can deliveries in Germany fell about 9% on lower deodorant sales. Despite brisk demand for disinfectants in the first quarter of 2020, the industry could not compensate for this decline.

In 2020, GDA reported demand for aluminum tubes declined only slightly (1%), due to steady demand from the pharmaceutical and food sectors. Overall, the results in 2020 were moderate compared to other end-use markets in the aluminum industry, GDA said.
Forecasts for 2021 are also dismal.

“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, because customers plan carefully and drive on sight”, says Johannes Schick, Chairman of GDA’s Division for Tubes, Cans and Impact-Extruded Parts.

Demand for cosmetics will decline in early 2021 due to mobility restrictions, as the shops in German cities will be closed at least until mid-February and other important sales channels, such as duty-free shops in airports, will continue to be shut down. A sustained upturn in the market is only expected to occur in the third quarter of 2021, GDA said. Until then, the market situation is expected to remain erratic.

The recyclability of aluminum packaging will play a larger role in 2021, GDA said, due to its infinite recyclability and no loss of quality. The current recycling rate for aluminum packaging in Germany is 93.2%. Currently, aluminum in the German packaging market only accounts for around 1% of total packaging consumption, which shows a huge growth potential.

“Coupled with the outstanding protective performance of aluminum, which efficiently prevents product spoilage and loss, an ecologically convincing overall package is delivered,” GDA said in a press release. “Aluminum packaging is therefore fully in-line with the EU Commission’s Green Deal approach for more resource efficiency and sustainability.”

 Photo courtesy of AEROBAL