PLASTIC CAPS AND CLOSURES
North American market to reach USD 4.26 bn in 2016
Safety regulations imposed on chemical containers and an increased use of dispensing closures for food and condiments are helping to boost growth in the North American plastics caps and closures market, according to Frost & Sullivan (London / UK; www.chemical.frost.com). The international market research company predicts that North American revenues from plastic caps and closures will reach USD 4.26 bn in 2016, from USD 3.70 bn in 2009. Measured in units, the market is expected to grow at a compound annual rate of 1.3% to 172.3 bn units by 2016, from 158 bn in 2009.

A total of 1.38 bn pounds of plastic resin was consumed for caps and closure manufacture in North America in 2009, according to the Frost & Sullivan report, “Strategic analysis of the North American plastic caps and closures market”. The escalating incidence of epidemics such as the H1N1 virus is also boosting demand, leading to higher consumption of personal care (PC), household and industrial chemicals (HIC) and pharmaceutical closures, the company said. At the same time, product development for hot-fill applications will result in the replacement of metal caps with plastic closures, noted Frost & Sullivan analyst Aniruddh Menon.

In its analysis of closure applications, Frost & Sullivan said beverages accounted for 63% of the market in 2009. Closures for bottled water now account for the greatest proportion of beverage closures, as rising temperatures result in an increased consumption of bottled water, it added. Demand for closures for carbonated soft drinks has fallen over the last decade, as the North American population has become more health conscious, Frost & Sullivan reported. Manufacturers of carbonated soft drink closures should shift their focus from the saturated North American market to new geographical areas, it suggested.

"For instance, Mexicans are currently consuming large volumes of carbonated soft drinks,” remarked Menon. "Existing manufacturers in the US and Canada could look at this region to compensate for the inadequate demand for carbonated soft drink closures in their nations." Pharmaceutical closures have the greatest potential for growth, by closure application, with an expected compound annual growth rate (CAGR) of 5.8% between 2009 and 2016.

Looking at closure types, Frost & Sullivan said tamper-evident closures represented the largest segment by volume, accounting for 65% of the market in 2009. Child-resistant (CR) and dispensing closures have the greatest potential for growth, the company said. The child-resistant closures market is expected to grow by a compound annual rate of 5.8% by volume, while the dispensing closures market is expected to grow at a rate of 4.0%. Frost & Sullivan said Rexam (London / UK; www.rexam.com) was the market leader in North American plastic caps and closures in terms of closure units.

e-Service:
Key findings of Frost & Sullivan's study "Strategic analysis of the North American plastic caps and closures market" as a PDF document
Frost & Sullivan unit forecast by closure type and application as a PDF document
12.07.2010 Plasteurope.com [216682]
Published on 12.07.2010

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