Caps and Closures Industry forecasts to 2010 and 2015
Released on = April 20, 2007, 9:44 pm
Press Release Author = Bharat Book Bureau
Industry = Marketing
Press Release Summary = US cap & closure market to reach $7 billion by 2010
US cap and closure demand is forecast to reach $7 billion in 2010, with unit demand expected to exceed 220 billion units. Growth will be driven by a shift in the product mix toward value-added configurations such as dispensing and child-resistant closures. Unit gains for caps and closures will continue to be driven by the penetration of closure-intensive plastic packaging at the expense of closureless containers like metal cans.
Press Release Body = Caps & Closures Industry forecasts to 2010 & 2015
US cap & closure market to reach $7 billion by 2010
US cap and closure demand is forecast to reach $7 billion in 2010, with unit demand expected to exceed 220 billion units. Growth will be driven by a shift in the product mix toward value-added configurations such as dispensing and child-resistant closures. Unit gains for caps and closures will continue to be driven by the penetration of closure-intensive plastic packaging at the expense of closureless containers like metal cans. However, a number of trends will constrain advances. For example, the use of plastic lids in single-serving yogurt cups is expected to decline as a result of performance improvements in foil lidding and efforts to reduce packaging waste. In addition, the growing popularity of 8-ounce metal cans for carbonated soft drinks will have a limiting effect on closure prospects with smaller-sized soft drink containers.
Plastic closures to offer the best opportunities
Plastic closures, by far the dominant closure material in value and units, will experience the strongest prospects through 2010. Above-average gains are anticipated for dispensing types, which cost more per unit than standard closures and often feature additional overcaps. Dispensing closures will continue to gain ground due to their popularity with convenience-oriented consumers and ability to differentiate products in a crowded retail marketplace. While price increases will support dollar gains, aggregate unit demand for metal closures will be restrained by declining demand for metal screw and
lug caps as they continue to lose share to plastic closures. Still, areas of opportunity will exist for metal closures based on robust growth for aluminum beverage bottles. Demand for natural cork closures is expected to fall as synthetic stoppers and aluminum roll-on closures replace them in the wine industry.
Child-resistant closures to benefit from multiple factors
Child-resistant closure demand will be stimulated by the need to meet Consumer Product Safety Commission household product packaging requirements, as well as by new product introductions and expanded use of value-added child-resistant closure configurations. Examples of the latter include caps with features like tamper-evidence, scheduling compliance and senior-friendliness.
Beverages to remain top cap and closure market
Beverages will remain the largest closure market, with above-average advances propelled by the popularity of single-serve PET bottles as well as bottle multipacks. Robust gains for single-serving milk and bottled water will fuel unit growth.
Study coverage
This new Freedonia industry study, Caps & Closures, is priced at $4400. It pre-sents historical US demand data (1995, 2000 and 2005) and forecasts to 2010 and 2015 by cap and closure raw material, product and market. The study also considers market environment factors, evaluates company market share and profiles 39 leading industry competitors.
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