World demand for caps and closures is expected to reach $40bn by 2014 boosted by continued growth in Asia and greater use of plastic packaging, according to Freedonia.In a report on the global caps and closures market, the Cleveland-based research firm said world demand is projected to rise 4.6 per cent per year, taking the market up towards the $40bn mark by 2014.
The Asia-Pacific region, and China is particular, is poised to be a key driver behind this expansion. Freedonia expects the region to account for more than two-fifths of total market value gains over the next five years.
Western Europe, meanwhile, is forecast to be the most sluggish region, with annual growth predicted to be just 2.5 per cent. And North America, which is the biggest global consumer in value terms, sits in between the two with an annual growth forecast of 4.2 per cent.
In product terms, beverages will undoubtedly remain of the mainstay of the caps and closures sector although Freedonia said more rapid gains are expected to come from smaller markets like food and pharmaceuticals.
And analysing the market by product type, the market researchers said plastic caps and closures will continue to grow at above average rates. This is because plastic packaging continues to gain ground at the expense of glass bottles and jars. The other side of this story is that metal closures may see weaker demand as they are typically used on glass bottles and jars.
Overall the 4.6 per cent annual gains expected in the caps and closures market over the coming years are down on the growth figures recorded in recent years.
Freedonia said that between 2004 and 2009, annual growth was 6.3 per cent, taking the value of the market from around $23bn in 2004 to almost $32bn in 2009.
