‘Erratic fluctuations’ in demand disrupting German aluminium aerosol can market
After ‘satisfactory’ market development in the first half of the year, the deliveries of aluminium tubes and aerosol cans to the German market are now ‘significantly declining’.
The Gesamtverband der Aluminiumindustrie (GDA) reported that in the first six months of 2020, deliveries of aluminium aerosol cans were already in decline compared to the previous year’s figures. Overall, the industry recorded a decline of around 2% in the first half of the year, which is still ‘moderate’ compared to other industry sectors.
In the first half of the year, the tube and aerosol can industry still benefited from the classification of the packaging industry as systemically relevant, from extensive purchases by consumers, from a ‘boom’ in disinfectants and additional orders from large customers, according to the GDA.
At the peak of the pandemic in Germany, packaging manufacturers were able to demonstrate their flexibility and reliability in production planning, which made it possible to meet ad hoc enquiries from customers for additional quantities efficiently and promptly, with ‘proven quality standards’.
According to the GDA, this changed significantly in Q3 because the changed consumer and customer behaviour in the wake of the pandemic is now increasingly showing its impact on the tube and aerosol can industry. The decline in demand that is now evident is primarily due to a further drop in order intake from the personal care sector and a slight slowdown in the pharmaceutical sector.
The ‘erratic fluctuations’ in demand from important core markets of the tube and aerosol can industry are increasingly causing issues for packaging manufacturers, according to the GDA, as reliable production planning has become challenging in the current market environment.
Johannes Schick, chairman of the tubes, cans, and impact-extruded parts division of the GDA, said: “The packaging manufacturers would appreciate clear, meaningful customer forecasts without short-term order cancellations so that efficient use of production capacities and thus a smooth supply can be ensured.
“The big challenges that the ongoing coronavirus crisis entails for the entire value chain can only be successfully met by the supply chain partners with a joint effort.”
The Gesamtverband der Aluminiumindustrie (GDA) reported that in the first six months of 2020, deliveries of aluminium aerosol cans were already in decline compared to the previous year’s figures. Overall, the industry recorded a decline of around 2% in the first half of the year, which is still ‘moderate’ compared to other industry sectors.
In the first half of the year, the tube and aerosol can industry still benefited from the classification of the packaging industry as systemically relevant, from extensive purchases by consumers, from a ‘boom’ in disinfectants and additional orders from large customers, according to the GDA.
At the peak of the pandemic in Germany, packaging manufacturers were able to demonstrate their flexibility and reliability in production planning, which made it possible to meet ad hoc enquiries from customers for additional quantities efficiently and promptly, with ‘proven quality standards’.
According to the GDA, this changed significantly in Q3 because the changed consumer and customer behaviour in the wake of the pandemic is now increasingly showing its impact on the tube and aerosol can industry. The decline in demand that is now evident is primarily due to a further drop in order intake from the personal care sector and a slight slowdown in the pharmaceutical sector.
The ‘erratic fluctuations’ in demand from important core markets of the tube and aerosol can industry are increasingly causing issues for packaging manufacturers, according to the GDA, as reliable production planning has become challenging in the current market environment.
Johannes Schick, chairman of the tubes, cans, and impact-extruded parts division of the GDA, said: “The packaging manufacturers would appreciate clear, meaningful customer forecasts without short-term order cancellations so that efficient use of production capacities and thus a smooth supply can be ensured.
“The big challenges that the ongoing coronavirus crisis entails for the entire value chain can only be successfully met by the supply chain partners with a joint effort.”
