World demand for caps and closures will exceed $55 billion in 2019. In unit terms, global demand is expected to exceed two trillion annually. Beverages will continue to account for well over half of overall demand in units. However, pharmaceuticals and a number of smaller markets are expected to register faster growth.
Although the most developed markets -- the US, Western Europe, Japan -- will retain their positions among the largest outlets for caps and closures, developing economies will generally register faster growth. China, already among the world's largest markets for caps and closures, will continue to grow much more rapidly than the world average. Other large, developing markets include India, Indonesia, and Brazil. Global manufacturers of personal care products and other household products have moved production capacity to Asia, South America and Eastern Europe to better compete in these fast-growing markets.
Plastic products are expected to boost their share of the overall global cap and closure market. Continued inroads by plastic containers into numerous applications as well as the rising prevalence of plastic closures on other container types, such as aseptic and gabletop cartons, and stand-up pouches, for which plastic closures have a virtual monopoly. Advances will also be supported by hot-fill processing improvements that will enable plastic containers to expand their presence in markets once dominated by glass and metal containers, although large outlets such as the beer market will remain heavily reliant on glass bottles (which mainly use metal closures) and metal cans (which do not use separate closures). Value gains for plastic caps and closures will be aided by growing use of dispensing closures, which are generally more expensive than standard types, in food and other applications.
Beverages will continue to be the primary applications for caps and closures in most parts of the world. This has been true for decades, but a number of new market trends will affect the industry going forward. Although the carbonated soft drink market will continue to grow in many areas, particularly in developing countries, it is in decline in the US and Western Europe. Beer production is expected to continue to grow, but cans have increased their market presence in many countries, restricting growth for metal crowns and other closures used for beer bottles. Bottled water continues to grow in nearly every country, boosting demand for plastic caps. In the higher value wine closure segment, natural corks are trying to retain their position despite competition by emphasizing the traditional wine experience. However, alter-natives such as screwcaps and synthetic cork stoppers, as well as microagglom-erated and other technical corks made from cork, offer a number of performance advantages.
This upcoming Freedonia industry study, World Caps & Closures, presents historical demand data (2004, 2009 and 2014) as well as fore-casts (2019 and 2024) by material (metal, plastic, rubber and cork), market (e.g., beverages, food, pharmaceuticals), world region, and for 18 countries. The study also considers key market environment factors, evaluates company market share, and profiles global industry players such as AptarGroup, BERICAP, Berry Plastics, Crown, Global Closure Systems, Silgan and Reynolds Group.