Increase in demand from cosmetics boosts aluminium packaging sales

By Andrew McDougall

- Last updated on GMT

Related tags Personal care market Cosmetics The tubes Economics

German manufacturers of aluminium aerosol cans and tubes have reported double-digit growth for the first eight months of 2010, driven by a significant increase in demand from the core markets including cosmetics.

Orders received were up 30 per cent for aerosol cans, up 13 per cent for flexible aluminium and laminate tubes and up 22 per cent for rigid tubes and cans for technical products, according to a report from the German Aluminium Association (GDA).

Market effect on the tube and can manufacturers

Stable market growth this year, well-directed cost reductions and increases in productivity by German manufacturers have meant they have emerged stronger from last year’s economic crisis.

However, the strong demand, has led to shortages of feedstock, such as aluminium slugs and plastics, which have seen enormous price rises.

“The price of slugs does not only reflect the price of aluminium on the London Metal Exchange (LME); it also contains components such as premiums for insurance and transport and the margin for converting the aluminium into slugs,” ​said Dr Monika Kopra-Schäfer, chair of the tubes, cans and impact extrusions division of the GDA and managing director of Linhardt, a manufacturer of aluminium cans and other containers.

“There have been significant price increases here in recent months and these have been clearly felt by the sector. It is not always easy to explain these complex interrelationships, but nonetheless necessary. After all, the sector needs adequate margins in order to also continue being capable of investing and remaining competitive,” ​she added.

German personal care market sales increase

Overall beauty and personal care sales values have increased in Germany in 2009, albeit slower compared to the previous year, according to a Euromonitor report.

This was mainly due to Germany’s gradual recovery from the economic crisis, with Germany and France the first European countries to emerge from the recession. The improved economic conditions have also led to an increase in consumer confidence.

According to Euromonitor, the German beauty and personal care market is valued at over €12.6bn, up 2.7 per cent on last year, accounting for 18 per cent of Western Europe.

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