New study finds: World Caps & Closures - The Freedonia Group

Industry Structure
Sample page from
Freedonia Industry Study
Gain #1111 a better World global Security understanding Products of & Sys-
your temscompetition
and analyze your
company's position in the industry with
information about:
market share
market leaders
competitive strategies
marketing
mergers & acquisitions
cooperative agreements
Marketing
INDUSTRY STRUCTURE
As the end-user base (e.g., major food and beverage firms) has consolidated and
closure systems have become more sophisticated, marketing requirements have
become a rather formidable impediment to entry in the highly competitive caps
and closures industry. This is especially true given the trend among end users
toward consolidating their packaging supply base among a few major producers
capable of offering custom development services and a full range of products on a
global basis.
SAMPLE PAGE
In general, end users of caps and closures evaluate potential vendors according to
price, product quality, product mix, technical support capabilities, company
reputation and service factors. The primary competitive factors in this industry
are generally price, performance and the ability to develop innovative products.
Marketing dexterity is particularly important given the relatively low level of
product differentiation in most applications. Since many cap and closure vendors
market similar product lines, customers often select suppliers on the basis of
service factors. Service encompasses a wide assortment of variables, including
delivery time, credit terms, emergency shipments, special order production runs,
and the design and engineering support available. In recent years, the ability to
shorten lead times and bring new products to market quickly has also emerged as a
critical competitive variable in the packaging industries of the developed world,
closures not excepted.
Firms in the cap and closure industry are increasingly emphasizing custom services
designed to meet individual end-user specifications. Since standardized, stock caps
and closures are purchased almost solely on the basis of price, the ability to custom
design and produce specialty closures represents a significant competitive
© Copyright by The Freedonia Group, Inc.
World Caps & Closures #1452 Order form on last page
9