AEROBAL reports declining aerosol container shipments as Ukraine crisis exacerbates industry issues
08 Mar 2022 --- The International Organisation of Aluminium Aerosol Container Manufacturers (AEROBAL) reports global shipments by its members declined by 1.2% in 2021 to around 5.6 billion units.
AEROBAL, whose members include metal packaging giants like Ball, says this decline is largely due to COVID-19 disruptions and inflating prices throughout global markets.
However, the organization says the recent Russian invasion of Ukraine is now “by far the greatest concern for manufacturers.”
“The war in Ukraine with the accompanying uncertainty and upheavals in the markets” could likely disrupt an otherwise more positive outlook for aluminum aerosol packaging players, it says.
Booms and busts
Some market segments experienced positive rises in 2021. While the main end-use market of deodorants remained roughly at the previous year’s level, deliveries to the hair mousses, shaving foams and food markets increased, in some cases, by double digits.
By contrast, the segments for hair sprays, sun care and pharmaceutical products, as well as for disinfectants, household and technical articles, were weaker than in the previous year.
“The slight decline in shipments was mainly due to lower demand from the EU member states plus the UK. Overall, the North and South American markets were roughly level with the previous year, while deliveries to Asia and the Middle East even increased, in some cases significantly,” says AEROBAL.
The environment agenda
AEROBAL president Leopold Werdich says consumer thirst for environmentally sustainable products is promising, given the high recycling rates of aluminum.
“Demand for [environmentally] sustainable packaging solutions remains high on customers’ agendas. The manufacturers of aluminum aerosol cans are delivering convincing concepts here,” Werdich says.
The ecological footprint of aerosol cans is being improved through targeted weight reductions and the use of optimized coating systems, he notes. “Overall, there is a trend in the market toward less complex can shapes, which creates greater leeway for weight reductions.”
Commenting on aluminum recycling rates, Werdich says: “It is crucial that globally efficient collection and sorting keep the valuable material in the cycle.”
Cautious optimism
Order intake in the first quarter of 2022 so far bodes well for aluminum aerosol can manufacturers, says AEROBAL.
This positive outlook is due to the revitalization of marketing activities on the customer side and increased relaunch activities, which can be observed in the market.
“However, the ongoing global COVID-19 pandemic, exorbitantly high energy prices driving inflation with corresponding loss of consumer purchasing power, and tensions in the supply chain for electronic control parts for machinery are dampening the industry’s mood.”
Aluminum afflictions
Despite high recycling rates for aluminum packaging, which stands at 76% throughout the EU, Switzerland, Norway and Iceland as of 2019, according to European Aluminium and Metal Packaging Europe, the aluminum market is still under heavy threat by Chinese production shutdowns.
China last year halted production of magnesium, a key alloy for aluminum packaging production, sending prices sky high and threatening facility shutdowns and mass layoffs in Europe.
By Louis Gore-Langton
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