The recent increases in raw material prices and shortages in plastic materials have put the European flexible tubes industry under pressure. Over the past year (April 2020 - April 2021), prices for aluminium and plastics feedstocks have risen considerably (see Plasteurope.com of 16.04.2021), by about 60% for aluminium and between 75% and 90% for plastics such as HDPE, LDPE and polypropylene, according to the European Tube Manufacturers Association (etma, Düsseldorf / Germany; www.etma-online.org).

The main factors contributing to the shortage of plastics in tube production are general capacity cuts in the plastics industry, rising demand for polymers in the recovering economies of China and the US, and the several forces majeures declared by plastics producers in Europe (see Plasteurope.com of 05.05.2021). The dearth in food grade post-consumer recycled materials is also bringing the industry under pressure due to growing demand for PCR, the association said. “The industry’s cost pressure was further fired by sky-rocketing prices for cartons, coatings and transport services.”

Fabio Gussoni, president of the association, said, “The tremendous pressure is simultaneously coming from all sides and is considerably threatening the balance sheets of the European flexible tube industry. These developments are a great challenge for our members.” He noted that the packaging industry has proved to be a system-relevant sector during the pandemic for securing the continuous supply of essential goods such as sanitisers, food, pharmaceuticals and cosmetics. “Now it is essential that the smooth supply of goods in Europe during an ongoing pandemic situation will not be jeopardised.”

In 2021, however, the industry has so far had sufficient demand, in terms of volume, from the resilient toothpaste, pharmaceutical and food sectors. Looking ahead, etma says it has a positive outlook “as long as vaccine-resistant mutants do not spoil the progress”. The association adds that it is optimistic about an increase in consumers’ buying due to the increasing vaccination speed in Europe, better test regimes, reduced mobility restrictions and the onset of summer.