Aluminium foils packaging market optimistic despite decline - EAFA

By Mark Astley

- Last updated on GMT

Related tags Aluminium foil Packaging European aluminium foil association

Aluminium foils packaging market optimistic despite decline - EAFA
The aluminium foil flexible packaging market should be “cautiously optimistic” about production growth, despite a 4% decline in foil demand for food applications in the first nine months of the year, says an industry body.

The decline brings the total aluminium foil production down to around 609,000 tonnes, according to data published by the European Aluminium Foil Association (EAFA).

Whereas, exports of aluminium foil outside of the EAFA region - which represents aluminium foil flexible packaging manufacturers across Europe - grew by almost 5%.

The association told FoodProductionDaily.com that the economic slow-down in Europe has had a huge effect on the demand for aluminium foil, according to the European Aluminium Foil Association (EAFA).

EAFA is an international body, which represents companies engaged in the rolling and rewinding of aluminium foil, as well as all types of aluminium flexible packaging.

The aluminium foils market, of which food packaging accounts for around 75%, has decreased through a high level of cautiousness in the sector, according to EAFA.

Cautious behaviour

An EAFA spokesperson told FoodProductionDaily.com: “The industry is destocking and the main reason is the economic situation. This situation has led to a level of vigilance in the aluminium foil market from the consumer to the supplier to the manufacturer.”

“The majority of foil is produced for the flexible packaging industry, which is mainly used in consumer goods. The more cautious consumers are, the more reluctant suppliers and retailers are to make orders. This works its way up the supply chain back to the packaging manufacturers.”

“We are not expecting a big gross across the aluminium foil food packaging sector in the next quarter, and this trend is likely to continue until next year. But we are cautiously optimistic of growth for 2012,” ​added the spokesperson.

Elsewhere, production of thinner foil, mainly used in the flexible packaging sector and in the production of household foil fell by 7%, while thicker foil segments declined by only 1%.

Essential packaging material

“Some people want to replace aluminium foil in food packaging for reasons of sustainability, but many of the big variety of markets where it is used are happy to continue using foil because of its superior barrier properties.”

Aluminium foil has long been an essential part of flexible packaging applications through its strength, formability and barrier properties.

Commenting on the sector data, Stefan Glimm, EAFA Executive Director said: “Especially in the third quarter we could see destocking as well as a more cautious behaviour along the whole value chain.”

“Aluminium foil has a healthy future because of its advantages as a sustainable and innovative packaging material. It plays an essential role in the prevention of food waste through its excellent barrier and preservation properties.”

Related topics Processing & Packaging

Related news