Erratic demand
German aluminum aerosol can market forecast to decline in 3Q 2020…
After overall satisfactory market developments in the first half
of 2020, production of aluminum tubes and, in particular,
aluminum aerosol cans to the German market, are now
significantly declining, according to a report from the German
Aluminum Association (GDA).
In the first half of the year, German production of aluminum
aerosol cans was already in decline compared to 2019. Production of
aluminum tubes increased by almost 6% due to stable demand from
the pharmaceutical industry. Overall, industry recorded a decline of
approximately 2% in the first half of 2020, which is still moderate
compared to other industry sectors, said GDA.
3Q decline in demand
In the first half of 2020, the aerosol can industry benefited from
extensive consumer purchases, a boom in disinfectant sales and from
additional orders by large customers. At the height of the COVID-19
crisis in Germany, packaging manufacturers demonstrated flexibility
and reliability in production planning.
This picture changed significantly in the third quarter of 2020
as consumer and customer behavior modified in the wake of the
pandemic. The recorded decline in aluminum aerosol can demand
was due primarily to a drop in order intake from the personal care
sector, as well as a slight slowdown of the pharmaceutical market.
Reliable customer forecasts essential
The erratic fluctuations in demand from important core markets
of the aerosol can and tube industry are increasingly causing
problems for packaging manufacturers, as reliable production
planning has become difficult in the current market environment.
“Packaging manufacturers would appreciate clear, meaningful
customer forecasts—without short-term order cancellations—so that
an efficient use of production capacities, and thus a smooth supply,
can be ensured,” explained Johannes Schick, Chairman of the GDA
Tubes, Cans & Impact-Extruded Parts Division.
“The biggest challenges from the ongoing COVID-19 crisis for the
entire value chain can only be met successfully by a joint effort from
supply chain partners.”
Cautious outlook
Overall, the aluminum aerosol can and tube industry is cautious
about the last quarter of 2020 and the coming year. Due to the
ongoing pandemic crisis and corresponding market uncertainty, industry
does not expect business to pick up until the end of the 2020.
In addition, industry anticipates a sideways movement in demand in
2021, despite all the unknowns that these extraordinary times bring
with them, said GDA. Spray
November 2020 Spray 21