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DOC duties penalize flexible packaging manufacturers, says FPA President

Flexible aluminum foil packaging is an essential component of most cosmetic and personal beauty care products to protect integrity and ensure the product is sanitary when purchased by the consumer. According to London-based market research firm Euromonitor, personal care items like cosmetics comprise $1.5 billion of the current U.S. flexible packaging market.

Additionally, the projected compound annual growth rate (CAGR) for beauty and personal products in the flexible packaging industry is projected to grow 0.1% by 2025, with specific product types forecasting stronger CAGR predictions. For example, facial cleansers forecast a 5.4% CAGR, face masks forecast a 4.3% CAGR, and adult sun care products forecast a 7.4% CAGR by 2025. 

Unfortunately, these growth rates may soon be further affected by duties levied by the U.S. Department of Commerce (DOC) against Chinese aluminum imports, which have been in place for five years. The DOC is now looking to further enact these duties against Thailand and South Korea, which will potentially accelerate supply chain issues and the shuttering of domestic aluminum manufacturers (including suppliers to the cosmetics and personal care industries) in favor of moving operations overseas to save production costs.

To learn more about this pressing issue and how it may impact suppliers and manufacturers in the cosmetics and personal care industries, CosmeticsDesign spoke with Alison Keane, President and CEO of the Flexible Packaging Association. She has represented the interests of flexible packaging manufacturers for over 6 years, and her previous experience working with the U.S. senate helps provide some much-needed insight into how cosmetics and personal care companies should be responding to these regulatory issues.


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