The global aluminium aerosol cans market saw a moderate shipment decline in FY21, but rising input costs of raw materials and secondary packaging are putting pressure on producers.
The International Organisation of Aluminium Aerosol Container Manufacturers (Aerobal) reports that the year-on-year shipment decline was moderate (3.9 per cent to around 2.9 billion units in the first half of 2021) as global demand was still very lively in the first quarter of 2020. The coronavirus pandemic only unfolded its full impact on the market in the course of the second quarter of 2020.
Sales of deodorants and hairsprays – like the entire cosmetics sector – suffered in the first half of 2021 because consumers went out less due to the pandemic. This accounts for why the deliveries to the deodorant market, which is dominant in terms of volume and which accounts for around 60 per cent of all deliveries in the industry, fell by almost 2 per cent. Deliveries to the hairspray segment were hit much harder and fell by a clear double-digit rate.
According to Aerobal, development in the food sector was very positive, as consumers spent more time at home and cooked meals themselves. Worldwide deliveries to this market, which currently still has to be described as a niche market for aerosols, increased by almost 50 per cent.
The pandemic-related special boom in disinfectants in 2020 did not continue in 2021 because these products are more likely to be packed in plastic bottles.
“The Aerobal members are very concerned about the skyrocketing aluminium price. The manufacturers who now have to stock up on metal are in a mess. Other relevant cost drivers are paints, printing inks, cardboard packaging, energy, wages and transport services. The pressure comes from all sides at the same time,” said Aerobal president Leopold Werdich.
While supply bottlenecks have already been reported in other industries due to the tense situation on the raw material markets, the supply chains in the aluminium aerosol can industry have so far been stable. However, nervousness also increases here.
The topic of sustainability and decarbonisation is still at the top of the agenda in the aluminium aerosol can industry. In particular, customers’ requests to use recycled material in aluminium aerosol cans represents a major challenge for manufacturers due to the limited availability of scrap which meets with a high demand at the same time.
According to Aerobal, the general mood in the industry is subdued due to the extreme cost burden, even if the current demand is quite satisfactory. A sustainable upturn is not expected until 2022.