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Analysis
Demand for caps and closures in US to reach USD9.6bn
US demand for caps and closures will increase 4.9 percent annually to $9.6 billion in 2012, representing over 276 billion units. Gains will be bolstered by the popularity of value-added designs such as child-resistant closures (CRCs) and dispensing closures, with the latter offering increased convenience and controlled product release in numerous applications. Gains will be supported by the continuing growth of closure intensive plastic packaging at the expense of closureless containers like metal cans.Advances will be limited by competition from packaging formats that do not use
closures, such as stand-up pouches and blister packs. The increasing use of peelable
lidding rather than rigid lids in single-serving cups will also restrict expansion. These
and other trends are presented in Caps & Closures, a new study from The Freedonia
Group, Inc., a Cleveland-based industry research firm.
Plastic caps and closures are by far the largest industry segment and will expand
at an above-average annual rate of 5.4 percent through 2012, benefiting from the
ongoing supplantation of metal and glass containers by their plastic counterparts in
many food and beverage applications. In addition, technological improvements have
enabled certain plastic closures to replace metal closures on glass food containers.
Moreover, gains will be helped by healthy expansion of synthetic corks in the wine
market at the expense of natural corks. Metal cap and closure demand will remain
virtually flat through 2012 as a result of inroads by plastics and declining shipments of
beer, the dominant application for metal crowns. Rubber stopper demand will register
the fastest gains, driven by rapid expansion in the pharmaceutical market as a result of
growth in the older population segments, which tend to be the heaviest consumers of
parenteral and other medications.
The Freedonia Group, Inc.
Page 2
Representing 37 percent of the total market value, the beverage industry will
continue to offer good prospects for caps and closures based on continued growth
in the bottled water market, the increasing proliferation of single-serving drinks in plastic
bottles and heightened use of higher-value dispensing closures that enhance
convenience and on-the-go consumption. In the milk market, the shift from closureless
cartons to plastic bottles for smaller sizes, particularly by schools and major quickservice
restaurants, will boost related cap and closure demand. The pharmaceutical
market will see the fastest gains of all markets, reflecting the shift to an older
demographic.
