German aluminium packaging market witnesses positive demand despite challenging economic situation

Despite Germany's difficult economic position, supplies of aluminium tubes and aluminium aerosol cans increased in the first half of 2023, according to Aluminium Deutschland (AD). Aluminium tubes saw a 4.4 per cent year-on-year (Y-o-Y) growth due to ongoing high demand from the pharmaceutical industry and consistent expansion in the cosmetics and food industries. Overall, about 424 million pieces of aluminium tubes were delivered to the German market. Regarding aluminium aerosol cans, the two main market groups, deodorants and hair care products, grew significantly over the previous year. This resulted in a 9.5 per cent rise in aluminium aerosol can exports, totalling 309 million units.

The association's chairman, Clemens Behrenbruch, said, "It is becoming increasingly difficult to replace retiring employees. The continuation of this trend can have lasting effects on the German economy and threatens Germany's standing as a leading industrial land. BPA is found virtually everywhere in manufacturing operations: in tanks, production lines and even in water. It is very important that legislators distinguish between the intentional and unintentional use of BPA to enable compliance with the law."

The industry appreciates the favourable trend in raw material and energy costs in 2023 but wishes for much more. Prices remain much higher than before the epidemic and the Ukrainian conflict, placing pressure on the German tube and aerosol can business. Furthermore, the scarcity of competent labour remains one of the industry's most pressing issues, with no signs of abating anytime soon. The expected European Commission ban on bisphenol-A (BPA) in food contact materials seems unavoidable. Despite major industry efforts to replace BPA coatings, switching interior and exterior layers to alternative technologies will take much work in the medium future.

Despite the market's increase in the first six months, demand has slowed significantly after the end of the second quarter. Furthermore, consistently high inflation rates and the IMF's estimate that Germany would have the lowest growth rate in Europe in 2023 throw shadows on the market. On the other hand, manufacturers of aluminium tubes and aerosol cans are cautiously hopeful in the long term since the key sales markets for these aluminium-based packaging solutions have historically proven durable, even in times of crisis.