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US Cap & Closure demand to reach $6.9 billion in 2010.

US demand for caps and closures is projected to advance 4.8 percent annually to $6.9 billion in 2010, representing 221 billion units. Growth will be aided by the ongoing shift in the product mix toward value-added configurations such as child-resistant closures (CRCs) and dispensing closures, with the latter providing increased convenience and controlled product release in a range of uses. Demand for CRCs will continue to be fueled by regulatory requirements enacted in 2002 which have expanded the range of products requiring child-resistant packaging. Unit gains will continue to be driven by the penetration of closure-intensive plastic packaging at the expense of closureless containers like metal cans. Limiting growth will be heightened competition from packaging formats that do not use closures, such as blister packs and stand-up pouches. These and other trends are presented in Caps & Closures, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Plastic closures are by far the largest and fastest growing industry segment. Plastic will further expand its share by supplanting metal closures as plastic containers increasingly replace glass containers and compatible metal closures in a variety of food and beverage applications. Moreover, technological advances have also enabled plastic closures to supplant metal closures on glass containers. Synthetic corks will log above-average gains as they continue to make inroads in the wine market at the expense of natural cork closures, all of which are imported to the US. While more limited opportunities for metal will result from inroads by plastics, the growing use of aluminum roll-on closures in the wine market, including on higher-end wines, will reverse the declines of the past decade in the roll-on segment. Metal crown demand will benefit from growing consumer preference for beer in glass bottles rather than cans, while robust expansion for aluminum beverage bottles will fuel heightened demand for crowns and roll-ons.

Representing 36 percent of the total market, the beverage industry will continue to offer solid growth potential for caps and closures. Gains will be propelled by opportunities in the thriving bottled water market and the increasing proliferation of single-serving beverages in PET bottles. The cosmetic and toiletry market will log above-average dollar growth based on a favorable outlook for product shipments and the widespread usage of value-added closures like custom dispensing types, many of which require a second, protective overcap. Above-average expansion in the pharmaceutical market will reflect the shift to an older demographic and the impact of stricter-regulations governing the child-resistant, senior-friendly and security properties of pharmaceutical containers.

Caps & Closures (published 06/2006, 316 pages) is available for $4,400 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail Information may also be obtained through
(million dollars)

 % Annual Growth
Item 2000 2005 2010 05/00 10/05

Cap & Closure Demand 4098 5465 6920 5.9 4.8
 Plastic 2933 4230 5570 7.6 5.7
 Metal 877 875 925 -- 1.1
 Other 288 360 425 4.6 3.4
COPYRIGHT 2006 Subscription: $00.00 per year as of 1/94. Published irregularly. Contact Freedonia Group, 3570 Warrensville Cente
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006 Gale, Cengage Learning. All rights reserved.

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Publication:Research Studies - Freedonia Group
Geographic Code:1USA
Date:Dec 22, 2006
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