Released on = April 20, 2007, 9:44 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = US cap & closure market to reach $7 billion by 2010

US cap and closure demand is forecast to reach $7 billion in 2010, with unit demand
expected to exceed 220 billion units. Growth will be driven by a shift in the
product mix toward value-added configurations such as dispensing and child-resistant
closures. Unit gains for caps and closures will continue to be driven by the
penetration of closure-intensive plastic packaging at the expense of closureless
containers like metal cans.

Press Release Body = Caps & Closures Industry forecasts to 2010 & 2015

US cap & closure market to reach $7 billion by 2010

US cap and closure demand is forecast to reach $7 billion in 2010, with unit demand
expected to exceed 220 billion units. Growth will be driven by a shift in the
product mix toward value-added configurations such as dispensing and child-resistant
closures. Unit gains for caps and closures will continue to be driven by the
penetration of closure-intensive plastic packaging at the expense of closureless
containers like metal cans. However, a number of trends will constrain advances. For
example, the use of plastic lids in single-serving yogurt cups is expected to
decline as a result of performance improvements in foil lidding and efforts to
reduce packaging waste. In addition, the growing popularity of 8-ounce metal cans
for carbonated soft drinks will have a limiting effect on closure prospects with
smaller-sized soft drink containers.

Plastic closures to offer the best opportunities

Plastic closures, by far the dominant closure material in value and units, will
experience the strongest prospects through 2010. Above-average gains are anticipated
for dispensing types, which cost more per unit than standard closures and often
feature additional overcaps. Dispensing closures will continue to gain ground due to
their popularity with convenience-oriented consumers and ability to differentiate
products in a crowded retail marketplace. While price increases will support dollar
gains, aggregate unit demand for metal closures will be restrained by declining
demand for metal screw and

lug caps as they continue to lose share to plastic closures. Still, areas of
opportunity will exist for metal closures based on robust growth for aluminum
beverage bottles. Demand for natural cork closures is expected to fall as synthetic
stoppers and aluminum roll-on closures replace them in the wine industry.

Child-resistant closures to benefit from multiple factors

Child-resistant closure demand will be stimulated by the need to meet Consumer
Product Safety Commission household product packaging requirements, as well as by
new product introductions and expanded use of value-added child-resistant closure
configurations. Examples of the latter include caps with features like
tamper-evidence, scheduling compliance and senior-friendliness.

Beverages to remain top cap and closure market

Beverages will remain the largest closure market, with above-average advances
propelled by the popularity of single-serve PET bottles as well as bottle
multipacks. Robust gains for single-serving milk and bottled water will fuel unit
growth.

Study coverage

This new Freedonia industry study, Caps & Closures, is priced at $4400. It pre-sents
historical US demand data (1995, 2000 and 2005) and forecasts to 2010 and 2015 by
cap and closure raw material, product and market. The study also considers market
environment factors, evaluates company market share and profiles 39 leading industry
competitors.


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