The European aluminium foil industry appeared to regain its footing in 2025, extending the stabilisation seen a year earlier. Demand moved in a positive direction overall, yet the recovery did not follow a straight line. As the year progressed, momentum began to soften, with the fourth quarter emerging as a clear weak spot. The question, then, is not whether recovery happened -but how steady it really was.
Despite an installed production capacity estimated at 1–1.4 million tonnes annually, actual output has consistently remained a bit below this range, underlining persistent underutilisation across the sector. The past few years help explain why. Output edged up slightly by 0.4 per cent from 967,000 tonnes in 2021 to 971,300 tonnes in 2022. Then came a sharp fall of 14.4 per cent to 831,700 tonnes in 2023. The rebound started in 2024, with production rising 7.3 per cent to around 892,500 tonnes, and continued in 2025 with a further 3.1 per cent increase to 920,400 tonnes.
This level of output broadly mirrors total deliveries, combining both domestic shipments and exports. In effect, production is closely aligned with the volume supplied to European markets and international buyers.
A year that started strong-but didn’t hold pace
If the beginning of the year gave confidence, the second half raised questions. Demand improved overall, but it lost strength as the months went by. Packaging demand for chocolate and coffee was hit particularly hard, mainly due to sharply rising raw material costs.
The quarterly trend tells the story clearly. Deliveries rose 10 per cent in the first quarter to 240,900 tonnes from the last year same period but growth slowed to 4.1 per cent in the second quarter at 236,300 tonnes, then to 2.2 per cent in the third quarter at 225,100 tonnes. By the fourth quarter, the trend had reversed, with deliveries falling 3.6 per cent to 218,100 tonnes.
Even with this slowdown, both domestic and export markets contributed to the overall increase. Shipments within Europe grew by 2.6 per cent, while exports outside the region rose by 7.2 per cent.
Consumption, however, kept moving upward. Europe used around 1 million tonnes of aluminium foil in 2024 - about 16 per cent of global demand - and this increased to roughly 1.05 million tonnes in 2025. A further 2.86 per cent rise is projected for 2026. Read Global Aluminium Industry Outlook 2026 for an indepth view.
Imports continue to bridge the gap
While demand has grown, production has not fully kept up. The difference is being covered by imports.
European imports stood at 263,377 tonnes in 2023 and remained almost unchanged at 263,346.9 tonnes in 2024. In 2025, they rose to 282,848 tonnes. This is not a temporary shift. It reflects deeper factors-steady packaging demand, aluminium foil’s position as a sustainable material, and stockpiling driven by trade policies in key export markets. Also read: Europe’s aluminium foil market decoded: Production and consumption drift apart, altering export–import balances
Trade flows reveal where supply is coming from
Trade patterns offer a clear view of how the market is structured. More than 66 per cent of imports within Europe come from Germany, Italy, Greece, France, and the United Kingdom, contributing roughly 30 per cent, 11 per cent, 14 per cent, 6 per cent, and 4 per cent respectively. The remaining 34 per cent is sourced from outside the region.
Among external suppliers, imports in 2025 included 66,474.471 tonnes from China, 17,525.7796 tonnes from India, and 90,459.0147 tonnes from Türkiye.
A large share of these imports consists of thicker foil in the 61–200 micron range, along with bulk material used in containers and cost-sensitive industrial applications. Competitive pricing from China, India, and Turkey continues to support these flows, even with duties ranging from 30 per cent to 48per cent. Volumes in this segment are estimated at around 200,000–250,000 tonnes annually, particularly where high energy costs make European production less competitive.
Thin and thick foil: a market moving at two speeds
The market does not move uniformly-it is divided between thin and thick foil, each following a different path.
European producers remain strongest in thin foil below 60 microns, which forms the core of production and exports. This segment is closely tied to packaging, accounting for 60–70 per cent of total use across food, beverages, confectionery, coffee, and pet food. Semi-rigid packaging such as trays and containers continues to hold up, supported by improvements in recyclability and efficiency. Household foil demand also remains steady, particularly in Austria and Italy.
Industrial applications account for the remaining 30–40 per cent of demand and are gaining ground. Growth is being driven in part by lithium-ion batteries, supported by the European Battery Alliance and expanding electric vehicle production in Germany, France, and Hungary. Additional demand comes from HVAC finstock used in air-conditioning systems, heat exchangers, and insulation in automotive and construction sectors.
Production of thin foil increased by 3 per cent compared with 2024, but demand weakened in the fourth quarter due to US tariffs, overcapacity, and rising competitive pressure. Stockpiling by customers outside Europe in the first half of the year also contributed to softer demand later on.
Deliveries of thicker foil (61–200 µm) rose by 3.4 per cent year-on-year, but this segment also saw a slight decline in demand in the fourth quarter. Overall, both categories recorded low single-digit declines towards the end of the year.
Göksal Güngör, Chair of the EAFA Roller Group, commented on the results:
“Developments in 2025 show that the market has stabilised overall, even though individual segments remain volatile. In the packaging sector in particular, we are seeing a clear sensitivity to global trade conditions.”
Recovery is evident but under pressure. While production rose in both thin (3 per cent) and thick foil (3.4 per cent), demand slipped slightly in the fourth quarter. Growth remains supported by packaging and higher-value applications, but high energy costs, tighter regulations, and geopolitical risks continue to limit momentum, leaving the market in a state of cautious adjustment.
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