By Keith Klamer
Stop and look closely at the top of the next soda bottle, drug container or tooth paste tube you buy: no doubt it is enclosed with a plastic cap of some kind. Makes sense: demand for plastic caps and closures is omnipresent in the market. U.S. demand is expected to grow 4% to $9.5 billion by 2014, exceeding 275 billion units.
Obviously, that's good news for those in the industry. Plastic caps and closures, which made up 79% of unit demand in 2009, will post above-average unit and value advances, mirroring penetration by plastic containers into numerous markets. Plastic cap and closure demand is being driven by the long-term shift in consumer packaging away from glass and metal containers to plastic alternatives.
Moreover, the compatibility of plastic caps with glass containers and the use of such caps on paper-based beverage cartons will boost growth as well, according to the latest figures. However, the not-so-good news is that gains will decelerate from the stratospheric 1999-2009 performance, reflecting the already deep penetration of plastic containers in most markets.
Further market inroads will come from the greater use of costlier dispensing closures and child-resistant closures. Even more gains will come from the continued spread of single-serving containers, especially in the beverage market, and the growing use of plastic containers for products which heretofore were sold in glass and metal containers.
Beverages, which represent over 50% of demand, are the largest market for caps and closures. Through 2014, beverage applications will experience below-average gains based on weak consumption outlooks for major segments such as carbonated soft drinks and beer, and a sharp deceleration for bottled water. Pharmaceutical applications will register the fastest gains through 2014, aided by above-average growth among older segments of the population and the need to comply with regulations and standards governing the child-resistant, senior-friendly and security features of pharmaceutical packaging.
So here's to you, plastic cap! You are indeed ubiquitous and moving rapidly toward omnipresence!
Obviously, that's good news for those in the industry. Plastic caps and closures, which made up 79% of unit demand in 2009, will post above-average unit and value advances, mirroring penetration by plastic containers into numerous markets. Plastic cap and closure demand is being driven by the long-term shift in consumer packaging away from glass and metal containers to plastic alternatives.
Moreover, the compatibility of plastic caps with glass containers and the use of such caps on paper-based beverage cartons will boost growth as well, according to the latest figures. However, the not-so-good news is that gains will decelerate from the stratospheric 1999-2009 performance, reflecting the already deep penetration of plastic containers in most markets.
Further market inroads will come from the greater use of costlier dispensing closures and child-resistant closures. Even more gains will come from the continued spread of single-serving containers, especially in the beverage market, and the growing use of plastic containers for products which heretofore were sold in glass and metal containers.
Beverages, which represent over 50% of demand, are the largest market for caps and closures. Through 2014, beverage applications will experience below-average gains based on weak consumption outlooks for major segments such as carbonated soft drinks and beer, and a sharp deceleration for bottled water. Pharmaceutical applications will register the fastest gains through 2014, aided by above-average growth among older segments of the population and the need to comply with regulations and standards governing the child-resistant, senior-friendly and security features of pharmaceutical packaging.
So here's to you, plastic cap! You are indeed ubiquitous and moving rapidly toward omnipresence!
About the Author:
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