Caps & Closures - The Freedonia Group

Study #2688October 2010$4900310 PagesCaps & ClosuresUS Industry Study with Forecasts for 2014 & 2019Sample Text,Table & ChartTABLE IV-2PLASTIC CAP & CLOSURE SUPPLY & DEMAND(million dollars)Item 1999 2004 2009 2014 2019Total Caps & Closures (bil units) 167.9 200.6 241.6 274.5 308.0% plastic 68.1 74.0 77.9 79.8 81.0productsPlastic Caps & Closures (bil units) 114.3 148.4 188.3 219.1 249.6Metal Caps & Closurescents/unit 2.7 2.9 3.3 3.5 3.9US demand for metal caps and closures is expected to register asamplemodest decline through 2014, losing further ground to plastic closures. Plastic Cap & Closure Demand 3039 4290 6165 7675 9615A sluggish outlook will be based on the ongoing supplantation of glass Threaded 1413 1936 table 2785 3345 4070containers -- which generally employ metal caps and closures -- by plasticDispensing 673 1001 1500 1990 2645alternatives and compatible plastic closures. In addition, many plastic Unthreadedclosures can be used with glass bottles and jars, further eroding demand Child-Resistantfor metal closure products. Moreover, marginal growth for beer production469484678675950 1180 1460930 1160 1440-- a principal application for metal closures -- will be a factor in + net exportsweak prospects for metal closures. However, the overall outlook masks26 28 35 30 30well-above average growth (albeit from a smaller base) in aluminum Plastic Cap & Closure Shipments 3065 4318 6200 7705 9645roll-on closures for wine packaging. Additionally, increasing usage ofaluminum bottles in certain beverage applications will benefit demandfor the metal caps and closures -- typically crowns and roll-ons -- usedwith these containers. In value terms, metal cap and closure demand willfall to $855 million in 2014 as a result of leveling off or slight declines inpricing after the price surges seen in the 2004-2009 period.Despite their dwindling market share, metal caps and closuresexhibit numerous textadvantages, including strength, the ability to createa tamper-evident vacuum seal, superior barrier properties and goodaesthetics (e.g., an upscale image in many applications and amenabilityto high-quality metal lithographic printing). However, improvementsin plastic containers and plastic closures have allowed plastic closuresto penetrate many hot-fill food and beverage markets once exclusivelyserved by metal closures. In the case of metal vacuum caps, an expensive,energy-intensive steam process is typically needed to soften theplastisol gasket inside the cap. In order to cut costs and eliminate stepsin the packaging process, many producers have opted for hot-fill bottlingmethods that use less costly plastic caps that do not need steaming.Since metal caps and closures are primarily used with glass bottlesand jars, growth prospects are heavily influenced by those forecast for118sampleCopyright 2010 The Freedonia Group, Inc.O th e rs5 8 .2 %CHART VI-1US CAP & CLOSURE MARKET SHARE, 2009($7.8 billion)O th e r L e a d e rs1 0 .5 %M a rke tL e a d e rs3 1 .3 %samplechart9.1%5.0%4.9%4.2%4.2%3.9%R examAp t arG ro u pB erry Plast icsSilg anR eyn o ld s G rpM ead W est v acoPage Click here to purchase onlineOrder now, click here!