The International Organization of Aluminum AerosolContainer Manufacturers (AEROBAL) reports that the global shipments of itsmembers fell by 3.9 percent to around 2.9 billion units in the first half of2021. The year-on-year decline was rather moderate, as global demand was stillvery lively in the first quarter of 2020. The corona pandemic only unfolded itsfull impact on the market in the course of the second quarter of 2020.
Sales of deodorants and hairsprays - like the entirecosmetics sector - suffered in the first half of 2021 because consumers wentout less due to the pandemic. That is why the deliveries to the deodorantmarket, which is dominant in terms of volume and which accounts for around 60percent of all deliveries in the industry, fell by almost 2 percent. Deliveriesto the hairspray segment were hit much harder and fell by a clear double-digitrate.
The development in the food sector was very positive,as consumers spent more time at home and cooked the meals themselves. Worldwidedeliveries to this market, which currently still has to be described as a nichemarket, increased by almost 50 percent. The pandemic-related special boom indisinfectants in 2020 did not continue in 2021 because these products are morelikely to be packed in plastic bottles.
Exploding raw material prices are a cause for concern
“The AEROBAL members are very concerned about theskyrocketing aluminum price. The manufacturers who now have to stock up onmetal are in a mess. Other relevant cost drivers are paints, printing inks,cardboard packaging, energy, wages and transport services. The pressure comesfrom all sides at the same time,” says AEROBAL President Leopold Werdich.
While supply bottlenecks have already been reported inother industries due to the tense situation on the raw material markets, thesupply chains in the aluminum aerosol can industry have so far been stable.However, nervousness also increases here.
Bottleneck scrap availability
The topic of sustainability and decarbonization isstill at the top of the agenda in the aluminum aerosol can industry. Inparticular, customers’ requests to use recycled material in aluminum aerosolcans represents a major challenge for manufacturers due to the limitedavailability of scrap which meets with a high demand at the same time.
The general mood in the industry is subdued due to theextreme cost burden, even if the current demand is quite satisfactory. Asustainable upturn is not expected until 2022.