European foil market in 2024: Recovers from weak demand and high inflation

The European aluminium foil industry has staged an impressive recovery in 2024 after a tumultuous 2023, marked by weak demand and soaring inflation. According to the latest data from the European Aluminium Foil Association (EAFA), total deliveries surged to 892,500 tonnes, a robust 7.3 per cent increase from the previous year’s 831,700 tonnes. While the industry is far from the pre-pandemic heights, signs of resilience and stabilisation are evident, driven primarily by a resurgence in packaging demand.

Key factors for growth in 2024

The key driver of this resurgence has been a marked uptick in demand from the packaging sector, which helped balance the industry’s recovery. Deliveries within Europe rose by 7.8 per cent, while exports outside the EAFA region recorded a modest increase of 3.5 per cent. Notably, thicker aluminium foil (61-200µ), widely used in food containers and technical applications, experienced an impressive 9.5 per cent growth in domestic deliveries. Meanwhile, thinner foils (<60μ), primarily used for household foil and flexible packaging, rose by 6.9 per cent.

The packaging sector proved to be the catalyst for this revival, showcasing remarkable resilience amid high inflation and shifting consumer behaviour. The demand for aluminium foil used in food containers skyrocketed by 23.8 per cent, while household foil saw a more stable yet positive increase of 0.2 per cent. With consumers adapting their spending habits in response to inflation, aluminium foil has gained traction as a sustainable and cost-effective packaging solution.

Thin vs thick foil witnessed differing growth trajectories

Thin and thick aluminium foils both witnessed positive growth, albeit at different paces. Total production of thin foils increased by 6.8 per cent, largely fuelled by demand for packaging films for food and household applications. On the other hand, thicker films saw a more substantial rise of 8.1 per cent, driven by heightened demand for aluminium packaging in the food delivery industry, pet food sector, and coffee capsules market.