US caps & closures market is set to grow by 5.9% annually

US demand for caps and closures is forecast to grow by 5.9% per annum to reach $6.8bn (E5.5bn) in 2008, representing nearly 210 billion units, according to the Freedonia Group.

Plastics will account for the largest part of the market, an estimated $5.4bn (E4.4bn) in 2008, which is more than twice the size of the market in 1998. The US research company said growth will be fuelled by a shift towards value-added products like child resistant closures (CRCs) and dispensing systems. These often employ a secondary overcap.

CRCs have benefited from a ruling in October 2002 by the Consumer Product Safety Commission expanding the range of products requiring such closures. Also driving volumes up will be the increasing prevalence of smaller, single-serve containers, especially in the beverage industry. Freedonia predicts further penetration of closure-intensive packaging at the expense of metal cans and paperboard cartons.

Synthetic corks will have the fastest growth of any plastic closure, according to the company. Rubber closures could benefit from emerging applications in the biotechnology industry.

Among end sectors, beverages will remain the largest market, with bottled water and flavoured milk driving further growth. The cosmetic and toiletry market will also register above-average gains, Freedonia said.