Cleveland 1/24/2013 9:10:00 PM
News / Business

US Demand for Caps and Closures to Exceed $10 Billion in 2016

US demand for caps and closures is projected to increase 4.4 percent annually to $10.4 billion in 2016, reaching 280 billion units.  Gains will be supported by material price increases and greater use of value-added dispensing and child-resistant closures (CRCs).  Unit advances will be driven by the continued popularity of single-serving containers, especially in the beverage market; further inroads by plastic containers into closureless containers such as metal cans; and the use of closures on other container types such as gabletop cartons, aseptic cartons, and stand-up pouches.  Preventing faster growth will be the maturity of several large beverage applications and competition from closureless packaging options, such as aluminum beverage cans, peelable lidding, most stand-up pouches, and blister packs.  These and other trends, including market share and product segmentation, are presented in Caps & Closures, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

Plastic caps and closures, by far the leading closure material type with 79 percent of unit demand in 2011, will post above average unit and value increases through 2016 based on the significance of plastic containers and the expanded use of plastic closures on other container types.  Gains will be supported by the long-term shift in the consumer packaging mix away from glass and metal containers to plastic alternatives, as plastic containers tend to employ plastic closures.  Plastic cap and closure demand is forecast to climb 4.7 percent per year to $8.4 billion in 2016, with unit demand nearly 225 billion.  Decelerated value growth will be based on a moderation in resin price increases and further lightweighting of closures for sustainability and to reduce costs.  Nonetheless, prospects will be aided by growing demand for dispensing closures, which are generally more expensive than standard types and favored by consumers for their convenience and ease of use. 

Metal cap and closure demand is expected to increase 1.5 percent per year to $1 billion in 2016, though units will continue to decline as a result of losses to plastic closures and a resurgent market for aluminum cans in the beer market.  Demand for aluminum roll-on closures will be aided by growing use of these caps in wine packaging.  Among other closure types, elastomer and rubber stopper demand will register healthy gains, driven by the continuing commercialization of injectable biotechnology-based drugs and the increased preference for stoppers made from higher value synthetic rubber and thermoplastic elastomers.  Though cork demand will increase marginally in unit terms, this performance will actually represent an improvement following declines caused by competition from synthetic corks and metal caps in the wine market.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.