Aluminum foil demand softens in Europe
In the first half of 2025, the aluminium foil industry experienced a mixed performance. While European sales showed a growth of over 6 percent, the second quarter saw a significant slowdown, with deliveries increasing by just 4.2 percent year-on-year to 236,500 tonnes.
According to Bruno Rea, Chairman of the EAFA Roller Group, the European markets are showing a clear weakening of momentum. This slowdown can be attributed to inventory reduction after initial stockpiling at the beginning of the year and weaker demand in areas such as coffee and chocolate packaging, which are suffering from rising raw material costs.
However, the industry's stability is being supported by the positive performance of export markets. In the second quarter of 2025, deliveries to countries outside Europe increased by 26 percent for thinner and 9 percent for thicker formats. China, South Korea, and Germany showed the highest growth in exports of thin-layer aluminum foils.
In contrast to the European market, overseas markets performed strongly. Thinner foils for flexible packaging remained particularly in demand, contributing to the overall increase in exports.
Despite the expected subdued development for the second half of 2025 due to the base effect after the exceptionally strong second half of 2024, the EAFA's outlook for the industry remains positive. The segment of thinner foils below 60 μm, mainly used in flexible packaging, experienced a slower growth of 0.9 percent in the second quarter of 2025. However, previously growing segments such as pet food are currently stagnating in the European aluminium foil market.
Bruno Rea expressed that the European markets are showing a clear weakening of momentum, but the EAFA sees the industry as resilient and internationally competitive. The industry's focus on innovation and sustainability, as well as its adaptability to market changes, ensures its long-term success.
In conclusion, while the European aluminium foil market is experiencing a consolidation of demand, the industry's stability is being bolstered by the positive performance of export markets. The EAFA remains optimistic about the industry's future, despite the anticipated subdued development in the second half of 2025.
