Caps & Closures - The Freedonia Group

Study #2688October 2010$4900310 PagesCaps & ClosuresUS Industry Study with Forecasts for 2014 & 2019Advances will be aided by greater use of more expensive dispensing closures and child-resistantclosures (CRCs), as well as by the continued popularity of single-serving containers.US demand to grow 4%annually through 2014US demand for caps and closures isforecast to increase 4.0 percent per yearto $9.5 billion in 2014, reaching 275billion units. Advances will be aided bygreater use of more expensive dispensingclosures and child-resistant closures(CRCs). Unit gains will be supported bythe continued popularity of single-servingcontainers, especially in the beveragemarket, and further inroads by plasticcontainers in applications formerlydominated by glass and metal containers.However, unit advances will deceleratefrom the pace of the 1999-2009period based on the maturity of severallarge beverage applications and environmentalconcerns regarding bottled water.Competition from closureless packagingformats, such as aluminum beveragecans, most stand-up pouches, andblister packs, will moderate gains, as willthe use of flexible foil, paper and filmlidding rather than rigid lids in manyapplications.Plastic caps, closures to remaindominant, lead gainsPlastic caps and closures, which comprised79 percent of unit demand in2009, will post above-average unit andvalue advances, reflecting continuedinroads by plastic containers into numerousmarkets. Plastic cap and closuredemand is forecast to climb 4.5 percentannually to $7.7 billion in 2014, supportedby the long-term shift in theUS Cap & Closure Demand, 2009($7.8 billion)consumer packaging mix away fromglass and metal containers to plasticalternatives, as plastic containers tend toemploy plastic closures. Moreover, thecompatibility of plastic caps with glasscontainers and the use of such caps ongabletop cartons will boost growth.However, gains will decelerate from the1999-2009 performance, reflecting thealready significant penetration of plasticcontainers in most markets as mostlarge-scale conversions have alreadytaken place.Metal cap and closure demand isexpected to decline moderately through2014 as a result of further inroads byplastic containers and closures and asluggish outlook for production of beer,Plastic79%Metal11%Other10%the dominant application for metalcrowns. Among major cap and closurematerials, elastomer and rubber stopperswill experience the fastest growththrough 2014 based on increasingpreferences for stoppers made fromhigher value-added elastomeric andsynthetic rubber materials. Gains willalso be driven by the continuing commercializationof injectable biotechnology-baseddrugs and the increasingavailability of parenteral medication inprefilled syringes. Demand for naturalcork closures will be adversely affectedby inroads from synthetic corks andaluminum roll-on closures in the wineindustry.photo: O-ICopyright 2010 The Freedonia Group, Inc.Page Click here to purchase onlineOrder now, click here!