Manufacturers of aluminum tubes and aerosol cans face market adjustments and regulatory changes

In the first half of 2024, members of the Tubes, Cans, and Impact Extruded Parts Association (FV-TDF) of Aluminium Deutschland reported a decline in deliveries of aluminium tubes and aerosol cans to domestic customers. A total of 397 million aluminium tubes were delivered to Germany, representing a 6.4% drop in cumulative deliveries compared to the very strong period of the previous year. For aluminium aerosol cans, 277 million units were delivered in the first half of 2024, marking a 10.3% decrease compared to the first half of last year.

Shift in market dynamics and export trends

In contrast to national statistics showing a decline, European statistics for aluminium tubes indicate a 1.1% increase in deliveries to Germany in the first half of 2024, highlighting an increase in the quantities of imported aluminium tubes into the German market from EU-based tube producers. On the other hand, European statistics for aerosol cans mirror the same downward trend as the national data. This significant decline can partly be explained by a German filler halting activities in March 2023. Additionally, the unusually high demand in the national aerosol market at the beginning of 2023 has normalised, contributing to this statistical drop.

Despite the lower demand from domestic customers, this did not negatively impact the members of the association. Companies reported an overall satisfactory demand for aluminium tubes and aerosol cans, as demand from other parts of the world compensated the national market deficit.

Challenges facing the industry

Nationally active companies are closely monitoring the upcoming wage negotiations, as the outcomes could have substantial effects on the sector. Some companies have observed a growing interest from the workforce, with an increasing number of unsolicited job applications in recent months, partly due to the ongoing weakness in the automotive industry.

Regulatory changes also present a major challenge. The anticipated BPA ban in food contact materials is expected to be passed by the end of 2024, while strict PFAS limits in the draft EU Packaging Regulation could affect the availability of compliant plastic components necessary for the functionality of end products (such as closures and valve systems for aerosols).

Industry reactions and outlook amid regulatory and market uncertainties

To tackle these challenges, the industry is proactively working to comply with new regulations by closely collaborating with supply chain stakeholders to ensure product compliance with the upcoming BPA ban and PFAS limits, while ensuring sufficient availability of aluminium packaging for customers.

Clemens Behrenbruch, Chairman of the TDF Association, commented: “Despite the decline in deliveries to Germany, our members report satisfactory and stable capacity utilisation in the first half of 2024. The decrease in national deliveries was offset by increased exports. We are actively adapting to new regulatory requirements and engaging in legislative processes to continue supplying aluminium tubes and aerosol cans competitively across various markets."