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Thursday, September 13, 2012

Plastic Caps and Closures Cap-Off Great Products!

By Keith Klamer


Take a minute and examine the top of the next soda bottle, drug vial or toothpaste tube you purchase. Odds are that it's sealed with a plastic cap or other kind of plastic closure device. Stands to reason: plastic caps and closures rule the packaging market. Demand for plastic caps and closures is expected to rise 4.0% to $9.5 billion by 2014, topping 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.

What's more, the use of plastic caps with glass containers and paper-based beverage cartons will super-charge growth further, research shows. However, the reality is that increases will start tapering off from the phenomenal 1999-2009 performance, which is normal given the already deep penetration of plastic containers in most markets.

Market gains will be boosted by greater use of more expensive dispensing closures and child-resistant closures. Further gains will be supported by the continued popularity of single-serving containers, especially in the beverage market, and increasing use of plastic containers for products formerly distributed in glass and metal containers.

Drink containers, which comprise more than 50% of demand, are the biggest market for plastic caps and closures. By 2014 beverage containers will undergo below-average gains based on lower consumption of soft drinks, beer and bottled water. This will be offset, however, by faster-than-average growth in pharmaceutical packaging, thanks to a graying population, and the need to adapt packaging to child-resistant, senior-friendly and security-related governmental regulations.

Looks like the lowly plastic cap, which is darn near ubiquitous now, is poised to become omnipresent!




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