Global demand for caps and closures is forecast to expand 4.7% each year, reaching $32 billion, or 1.4 trillion units, by 2011.
According to a recent study by The Freedonia Group, a Cleveland-based industry market research firm, continued economic growth and rising personal incomes are among the trends supporting the development of the consumer non-durable goods markets, with closures and other packaging materials among the primary beneficiaries.
Unit gains will continue to be driven by the penetration of closure-intensive plastic packaging at the expense of traditionally closureless packaging media, such as gabletop and aseptic drink cartons, and plastic pouches.
Sales revenues will be fuelled by value-added closure types that provide increased product safety, user convenience and shelf appeal, such as tamper-evident, child- resistant and dispensing types.
Plastic closures will continue to supplant traditional metal and cork types, supported by technological advances and the ongoing shift from glass to plastic and paperboard in consumer packaging applications such as soft drinks and pharmaceuticals.
Above-average gains are anticipated in the world’s emerging markets, especially Asia, with China expected to account for over one-fourth of projected unit gains (though only 16% of value gain due to low prices) in global cap and closure demand through 2011. The US, which accounts for almost one-fourth of global cap and closure value demand, also enjoys favourable prospects.
Beverages will remain the dominant market for caps and closures, accounting for almost 65% of unit demand in 2011.
Healthy growth is also anticipated in consumer chemical markets such as cosmetics, toiletries and household cleaners.
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