German aluminium aerosol market ‘resilient’ despite 7% drop in deliveries
Despite a 7% drop in deliveries in the first half of 2021, Germany’s aluminium aerosol can and tube industry has proven to be ‘resilient and reliable’ in a crisis, said the Gesamtverband der Aluminiumindustrie (GDA).
Along with the challenges created by the COVID-19 pandemic, ‘unusually high prices’ for raw materials such as aluminium, plastic, cardboard, wood, coatings and printing inks have led to ‘considerable’ cost increases in the industry.
“In some areas, there has been a significant shortage of materials, which in some cases made cost-intensive stock building in the packaging industry necessary to ensure the delivery reliability of this system-relevant industry,” said Johannes Shick, chairman of GDA’s tubes, cans, and extruded parts division.
“In this way, out of stock situations could also be avoided for customers of the tube and can manufacturers. As in the entire crisis, the packaging industry has delivered in the truest sense of the word and has distinguished itself as a reliable partner in the supply chain, even under the most difficult market conditions.”
During the pandemic, deliveries to the cosmetics industry, which dominates in terms of volume, declined ‘significantly’, due to mobility restrictions and temporary closures of hairdressing salons, beauty and care studios and duty-free shops in airports.
The demand for deodorants and hair colours fell noticeably, said the GDA, with the hair colour segment weakening particularly in the first quarter of this year.
Deliveries to the food and household sectors went up significantly, against the trend, during the same period. In contrast, demand from the pharmaceutical market was mixed because drug prescriptions went down due to a drop in doctor visits during the pandemic.
In view of these pandemic-related developments, the total decrease in deliveries in the industry, which amounted to 7% in the first half of 2021, is still ‘moderate’, the GDA said.
The overall outlook for the industry in 2021 is cautiously optimistic, despite the threat of the Delta variant and what the GDA describes as a ‘decreasing willingness to vaccinate’. Increased confidence should fuel consumption in the coming months, so that in 2021, at least, the same result as 2020 could be achieved.
Along with the challenges created by the COVID-19 pandemic, ‘unusually high prices’ for raw materials such as aluminium, plastic, cardboard, wood, coatings and printing inks have led to ‘considerable’ cost increases in the industry.
“In some areas, there has been a significant shortage of materials, which in some cases made cost-intensive stock building in the packaging industry necessary to ensure the delivery reliability of this system-relevant industry,” said Johannes Shick, chairman of GDA’s tubes, cans, and extruded parts division.
“In this way, out of stock situations could also be avoided for customers of the tube and can manufacturers. As in the entire crisis, the packaging industry has delivered in the truest sense of the word and has distinguished itself as a reliable partner in the supply chain, even under the most difficult market conditions.”
During the pandemic, deliveries to the cosmetics industry, which dominates in terms of volume, declined ‘significantly’, due to mobility restrictions and temporary closures of hairdressing salons, beauty and care studios and duty-free shops in airports.
The demand for deodorants and hair colours fell noticeably, said the GDA, with the hair colour segment weakening particularly in the first quarter of this year.
Deliveries to the food and household sectors went up significantly, against the trend, during the same period. In contrast, demand from the pharmaceutical market was mixed because drug prescriptions went down due to a drop in doctor visits during the pandemic.
In view of these pandemic-related developments, the total decrease in deliveries in the industry, which amounted to 7% in the first half of 2021, is still ‘moderate’, the GDA said.
The overall outlook for the industry in 2021 is cautiously optimistic, despite the threat of the Delta variant and what the GDA describes as a ‘decreasing willingness to vaccinate’. Increased confidence should fuel consumption in the coming months, so that in 2021, at least, the same result as 2020 could be achieved.
