World Caps & Closures (published 03/2009, 350 pages) is available for $5,800 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 pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.
Global demand for caps and closures is forecast to expand 4.2 percent per year through 2012 to $36.5 billion, representing 1.6 trillion units. However, over the 2008-2010 period, growth in all regions will be negatively impacted by the ongoing global economic malaise. Continuing urbanization and rising personal incomes in the developing world will support expansion of consumer nondurable goods markets, with closures and other packaging materials among the primary beneficiaries. Gains will also be supported by the continuing growth of closure-intensive plastic packaging at the expense of closureless containers such as metal cans. Beverages will remain the dominant market for caps and closures, accounting for 64 percent of unit demand in 2012. These and other trends are presented in World Caps & Closures, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Gains will also be supported by the continuing growth of closure-intensive plastic packaging at the expense of closureless containers such as metal cans. Advances will be limited to some extent by competition from packaging formats that do not use closures (such as stand-up pouches and blister packs) and by environmental concerns regarding plastic waste in general.
Plastic caps and closures, the largest industry segment, will also register the strongest gains, benefitting from the continuing 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 further expansion of synthetic corks in the wine market at the expense of natural corks. Metal cap and closure demand will register weaker gains, posting outright declines in most developed markets.
Above-average gains are expected in the world’s emerging markets, especially those in Asia. China will lead the way, accounting for almost 30 percent of projected unit gains in global cap and closure demand through 2012. The US, which accounted for one-fourth of 2007 global cap and closure value demand, will see strong value gains, fueled by a continued shift in the product mix toward value-added configurations. Western Europe and Japan will see slower growth, hindered by mature markets and stagnant population growth.
