Written on: February 2, 2022 by SprayTM
Supply security is top issue in 2022
Deliveries of aluminum aerosol cans and tubes to the German market were stable in 2021 despite ongoing COVID–19 pandemic pressures. Demand picked up significantly, particularly in the second half of the year, leading to an overall satisfactory result for the industry, reported Aluminium Deutschland e. V. (AD).
While demand for pharmaceutical and cosmetic/ personal care products was rather subdued in 2021 due to declining doctor’s visits, continuing mobility restrictions and reduced leisure activities, the demand for food, technical and household products increased significantly as consumers spent more time in their homes. There was also a significant increase in demand for aluminum cartridges, small bottles and rigid tubes in 2021, where existing markets could be expanded and new markets were developed through innovative applications.
Tense situation on the transportation and energy markets
Due to the continuing tense situation in the markets for transportation services, the issue of supply security is playing an increasingly central role in the value chain. The lack of availability of trucks and containers for deliveries within Europe and overseas is putting globally interlinked logistics chains to a tough test. So far, proactive production and transportation planning by aluminum packaging manufacturers has prevented retail bottlenecks and out–of–stock situations.
“The industry has distinguished itself as a reliable supply chain partner since the pandemic began,” noted Johannes Schick,
Chairman of AD’s Tubes, Cans & Impact Extruded Products Division.“
“However, the situation will remain extremely tense in 2022, as the rampant omicron variant could negatively impact staff availability at plants, marking another bottleneck,” Schick added.
“Added to this are energy prices, which have risen exorbitantly in recent months. These are causing the industry great concern, as they are cutting the scope for necessary investments in the future and for maintaining the industry’s innovative strength.”
Confidence for 2022
Overall, the industry is looking ahead to the first half of 2022 with confidence due to promising incoming orders.
“If another COVID 19 variant or a worsening Ukraine crisis with the associated uncertainties among consumers does not throw us off course, we definitely expect overall demand to pick up further, especially also in the key pharmaceutical and cosmetic /personal care products market,” summed up Schick.