Declining Demand for Aluminum Foil in Europe
In the first half of 2025, the aluminium foil industry saw a significant increase in deliveries, with a total of 480,300 tonnes, representing a 7.7 percent rise. Exports to third countries played a major role in this growth, increasing almost 20 percent.
However, the European market showed a more moderate growth in the second quarter of 2025, with total deliveries increasing by 4.2 percent year-on-year to 236,500 tonnes. This growth was notably subdued, particularly in the segment of thinner foils below 60 μm, which are mainly used in flexible packaging, with an increase of only 0.9 percent.
The consolidation of demand within Europe in the second quarter of 2025 was attributed to a variety of factors. Inventory drawdown and weaker demand in areas such as coffee and chocolate packaging, affected by rising raw material costs, contributed to the slowdown. Previously growing segments such as pet food are currently stagnating.
Despite these challenges, the European Aluminium Foil Association (EAFA) sees the industry as resilient and internationally competitive. Exports remained the key growth driver, with deliveries to countries outside Europe increasing by 26 percent for thinner and 9 percent for thicker formats (61-200 μm). The countries with the largest increases in shipments of thin and thick aluminum foils to Europe were Turkey and Egypt.
Thinner foils for flexible packaging remained particularly in demand in overseas markets. The EAFA attributes the industry's resilience to its international competitiveness, even expecting a more subdued development for the second half of 2025 due to the base effect after the exceptionally strong second half of 2024.
Export markets continue to perform positively and provide stability to the industry in the second quarter of 2025. The demand for thinner foils for flexible packaging was strong in overseas markets. Bruno Rea, chairman of the EAFA Roller Group, explained that the industry is observing a consolidation of demand within Europe in the second quarter of 2025.
The EAFA Roller Group provided an explanation for the consolidation of demand within Europe in the second quarter of 2025. European sales grew by more than 6 percent, but exports to third countries showed a significantly higher growth rate. The dynamics in European markets have weakened in the second quarter of 2025.
Despite these challenges, the EAFA remains optimistic about the industry's future. Previously growing segments such as pet food are currently stagnating, but the demand for thinner foils for flexible packaging remains strong in overseas markets. The EAFA expects the industry to continue to be resilient and internationally competitive.
