
Aluminium foil has made an essential part of flexible packaging and container applications along with its use in automotive and heat exchange components, insulation material and other industrial applications. Its use is witnessing a year-on-year growth across the world owing to characteristics like strength, formability, and barrier properties.
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{alcircleadd}In Europe, as flexible packaging market is expected to grow from $28.22 billion in 2016 to $ 41 billion by the end of 2021 at a CAGR of 7.76%, the United Kingdom emerges as a large consumer of aluminium foils.
But according to our third-party data, the country’s estimated aluminium foil import saw a plunge in the last two years. In 2018, the UK’s foil import volume was approximately at 96,392 tonnes, a tad lower from 96,586 tonnes in 2017. In 2016, the import volume was at 101,207 tonnes, which indicates that the foil import by the UK in 2017 had seen a 5 per cent drop from the previous year.

But as you can see in the above graph, that despite a year-on-year fall in the UK’s total import volume, the country’s aluminium foil consumption from Germany rose significantly in the past two years. In 2016, the United Kingdom had secured 9,339 tonnes of aluminium foil from Germany, which in the subsequent years grew to 12,473 tonnes and 17,472 tonnes. This means 2017 saw a YoY rise by 34 per cent and 2018 by 40 per cent. In 2018, Germany was the leading exporter of aluminium foil to the UK.
Now coming to the import costs, they have been growing year-on-year unlike the import volume. In 2016, the United Kingdom’s estimated aluminium foil import cost was at US$263 million, which after growing by 10 per cent stood at US$289 million in 2017. In 2018, the cost was at US$295 million, 12 per cent up from 2016 and 3 per cent from 2017. This YoY growth of import cost could be because of the global aluminium foil price hike on increasing demand.

Similarly, the UK’s import cost from Germany grew from US$38 million in 2016 to US$48 million in 2017 and US$60 million in 2018.
Italy, Poland, and Turkey were some of the other important aluminium foil exporters to the UK in 2018.
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