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The aluminum tube and aerosol can industry in Germany is resilient and reliable, also in times of crisis

The development of thealuminum tubes and aerosol can market in the first half of 2021 can only beadequately assessed for the German market in retrospect to 2020 because thefirst quarter of 2020 at the beginning of the COVID-19 crisis was stillcharacterized by extremely lively demand from all end consumer markets.

Food and household sectors stablein the crisis, pharmaceuticals mixed, cosmetics weaker

In the course of the crisis, however, deliveries tothe cosmetics market, which dominates in terms of volume, declinedsignificantly due to mobility restrictions and temporary closures ofhairdressing salons, beauty and care studios and duty-free shops in airports.The demand for deodorants and hair colours fell noticeably, with the hair coloursegment weakening particularly in the first quarter of 2021. Deliveries to the food and household sectors even wentup significantly against the trend during this period. In contrast, demand fromthe pharmaceutical market was mixed because drug prescriptions went down due tothe decline in doctor visits during the pandemic. In view of these pandemic-related developments, thetotal decrease in deliveries in the industry which amounted to 7 percent in thefirst half of 2021 is still moderate.

 

Reliability of aluminum packagingmanufacturers in difficult times

Customers' plans are still extremely short-term andvolatile, which demands a high degree of flexibility in production planningfrom packaging manufacturers. The tube and aerosol can industry is worriedabout the still unusually high prices for raw materials such as aluminum,plastic, cardboard, wood, coatings, printing inks and for transport services,which have led to considerable cost increases in the industry.

"In some areas there has been a significantshortage of materials, which in some cases made cost-intensive stock-buildingin the packaging industry necessary in order to ensure the delivery reliabilityof this system-relevant industry," says Johannes Schick, chairman of GDA’stubes, cans and extruded parts division. “In this way, out-of-stock situationscould also be avoided for the customers of the tube and can manufacturers. Asin the entire crisis, the packaging industry has delivered in the truest senseof the word and has distinguished itself as a reliable partner in the supplychain even under the most difficult market conditions,” added Schick.

Overall, the outlook for the industry for the rest of2021 is cautiously optimistic, despite the spreading delta variant and adecreasing willingness to vaccinate. The brightening mood and confidence in thepopulation should fuel consumption in the next few months, so that in 2021 atleast the result of last year could be achieved.

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