Freedonia Group sees opportunities for plastics in world market

Global demand for caps and closures is forecast to increase an annual rate of 4.7% to reach a market value of $32bn in 2011, compared with $25bn in 2006, according to Freedonia Group. Caps and closures demand in 2011 is expected to be 1.4 trillion units.

The global market in 2011 is expected to show a three-way split, with demand forecast to be $9.3bn in North America, $9.2bn in Western Europe and $8.8bn in Asia/Pacific. Plastics closures will continue to supplant metal versions and increasingly substitute cork types. This is supported by technological advances and the ongoing shift from glass containers to plastic and paperboard packaging.

The US group says that beverages will remain the dominant market for caps and closures, accounting for almost 65% of unit demand in 2011. Strongest gains are expected in the bottled water segment, with sports drinks and flavoured milk also improving demand. Healthy growth is anticipated in non-drinks packaging, in markets such as cosmetics, toiletries and household cleaners.

Freedonia says closure-intensive plastics packaging will make inroads at the expense of closureless packaging such as gabletop and aseptic drink cartons. However, competition from blister packs and stand-up pouches will limit the overall growth of closures. Sales revenues are expected to be influenced by a shift in the product mix in favour of value-added closure types that provide increased product safety, user convenience and/or shelf appeal.