Demand for Germany-produced aluminum tubes and cans drops amid outsourcing

24 Sep 2024 --- Members of the Tubes, Cans and Impact Extruded Parts Association (FV-TDF) of Aluminium Deutschland reported a decline in the delivery volumes of aluminum tubes and aerosol cans to domestic customers in the first six months of 2024.

Domestically, the latest data reveals that 397 million aluminum tubes were delivered to Germany, reflecting a 6.4% decrease in cumulative deliveries compared to the “strong performance” in the same period last year. 

European statistics show a 1.1% increase in aluminum tube deliveries to Germany from EU-based tube producers.

Deliveries of aluminum aerosol cans dropped by 10.3% from the first half of 2023, with 277 million units supplied in the early part of this year.

The EU-wide statistics for aerosol cans reflect the same downward trend as Germany’s national data. A contributing factor to this decline is the halting of a German filler in March 2023, coupled with the normalization of demand following an unusually high surge in early 2023.

Seifeldin Raslan Mohamed, head of the packaging and metal powder division at Aluminium Deutschland, tells Packaging Insights: “National customers are purchasing more from other EU-based tube producers or from the same national companies but from their EU-based production sites.” 

“This often makes sense for German-based customers who plan to have these tubes filled outside of Germany, as there is no advantage in ordering from the German production site.”

Shifts in demand

Despite the weaker demand from the domestic market, association members remain optimistic. The overall demand for aluminum tubes and aerosol cans globally has compensated for the local deficit.

According to Mohamed, this could present a significant opportunity for German producers to leverage their experience and quality to expand their business and supply these new regions.

Clemens Behrenbruch, chairman of the TDF Association, says: “Despite the decline in deliveries to Germany, our members report satisfactory and stable capacity utilization in the first half of 2024. The decrease in national deliveries was offset by increased exports.” 

The industry is cautiously optimistic that the demand level will stabilize at the levels before 2023.“We are actively adapting to new regulatory requirements and engaging in legislative processes to continue supplying aluminum tubes and aerosol cans competitively across various markets.”

Industry braces for regulatory shifts

Regulatory changes are poised to reshape the industry. A ban on bisphenol A (BPA) in food contact materials is expected to pass by the end of 2024. Moreover, limits on per- and polyfluoroalkyl substances (PFAS) — also widely known as “forever chemicals” — in the EU Packaging Regulation could affect the availability of compliant plastic components, such as closures and valve systems for aerosols, which are essential for the functionality of end products.

A recent study found more than 3,600 chemicals in food packaging present in the human body, including BPA and PFAS.

“We have received reports that some brand owners are experiencing difficulties in finding suitable BPA-free coatings for their ‘difficult-to-hold’ or particularly aggressive products,” says Mohamed.

According to him, there are concerns about the ability of coating producers to deliver the required amounts of BPA-free coatings in the required quantities, especially if there is a ‘spillover effect’ in the beauty market.

“PFAS could not only affect the coatings, but we have heard reports that it might also affect the PE or PP components needed for some metal packaging formats, including closures.”

To mitigate the impact of the regulatory hurdles, industry players are proactively collaborating with their supply chains to ensure product compliance with the upcoming BPA ban and PFAS limits. 

Efforts are underway to secure adequate supplies of aluminum packaging for customers, with a focus on sustainability.

Beiersdorf, a German multinational, announced last year that all deodorant cans in its European Nivea, 8X4, Hidrofugal and Hansaplast lines would contain at least 50% recycled aluminum. The recycled material is sourced from the European market, remelted and processed into aerosol cans.

By Sichong Wang