Cosmetics feed growth for aluminium packaging in Germany

Germany experienced a “significant increase “ in turnover for aluminium packaging across cosmetics as well as food and pharmaceuticals in 2010 as the sector recovered from recession, said the national trade body.

But the Gesamtverband der Aluminiumindustrie e.V (GDA) warned that high prices for input costs was “clouding the big picture” and a threat to the competitiveness of the sector.

Demand up

The industry group said overall production of packaging based on - or including aluminium - rose by 13.6 per cent last year. Some 405,100 tons of aluminium foil, tubes, flexible packaging, and aerosol and beverage cans produced by manufacturers in Germany, in 2010 compared to 356,000 tons the year previously.

“We estimate there was a 5 per cent increase in food packaging and around 10 per cent each for the pharmaceutical and cosmetic packing sectors,” GDA executive director Stefan Glimm told CosmeticsDesign-Europe.com.

“In terms of production, we have almost reached the level we were at before the crisis. The good situation is being clouded, however, by rising prices for raw materials and higher operating costs, which are squeezing margins.”

The aluminium packaging sector is benefiting from strong consumer sentiment – with climbing demand seen both in the domestic and foreign markets, said GDA aluminium foil chairman Manfred Mertens.

He added that export sales accounted for about 70 per cent of the turnover of the companies in the sector.

Outlook

The organisation said it was “optimistic” for 2011 and predicted that growth in the aluminium packaging sector would be in line with general economic forecasts. It said the first quarter had been characterised by “high orders and stable demand”.