US demand for caps and closures is projected to reach US$10.4 bln in 2016, representing 280 billion units. Gains will be supported by material price increases and greater use of value-added dispensing and child-resistant closures, as per a report by Freedonia. Unit gains will be fueled by the continued popularity of single-serving containers, especially in the beverage market; further inroads by plastic containers into applications once dominated by glass and metal containers; and the use of closures on other container types such as gable top cartons, aseptic cartons and stand-up pouches. Among factors that will moderate unit growth are the maturity of several large beverage applications and competition from closureless alternatives such as peelable lidding and blister packaging.

Plastic caps and closures, by far the leading material and product type, will post above average increases through 2016 based on the significance of plastic containers and the expanded use of plastic closures on other container types. Dispensing caps, which are generally more expensive than standard types and favored by consumers for their convenience and ease of use, will register the fastest gains among major plastic closure types. Overall value growth for plastic caps and closures will be restrained by an expected moderation in resin price increases relative to the 2006-2011 period and further lightweighting of closures for sustainability and to reduce costs. While metal closures will face further losses to plastic closures, growing use of aluminum roll-on closures in the wine market will provide a growth niche. Elastomer and rubber stopper demand will register healthy gains, driven by the continuing commercialization of injectable biotechnology-based drugs and the increased preference for stoppers made from higher-value synthetic rubber and thermoplastic elastomers. Natural corks will experience a modest recovery due to quality improvements and proactive industry marketing programs aimed at promoting cork as a sustainable and value-adding option in wine packaging. Pharmaceuticals will be the fastest growing cap and closure market through 2016, helped by the expanding elderly population and trends favoring the use of medication over more costly patient procedures. In addition, prospects will benefit from a need to comply with regulations and standards governing the child resistant, senior-friendly and security features of pharmaceutical packaging. Beverages are by far the largest market for caps and closures. While the popularity of single-serve bottles will stimulate unit gains, prospects will be constrained by greater use of lighter weight, less costly closures. The carbonated soft drink market is expected to transition from two-piece polypropylene caps to lower priced one-piece linerless caps made from high density polyethylene (HDPE). In the beer market, metal crown prospects will be dampened by the resurgence of aluminum cans, reflecting the movement among craft brewers from glass bottles to cans and strengthened sales of mass market beer brands in cans among price sensitive consumers. While polypropylene will remain the leading cap and closure resin, the material is expected to be increasingly replaced with HDPE caps based on economic and sustainability advantages. In recent years, the development of abundant natural gas feedstocks in the US has put polyethylene (which relies on natural gas feedstocks) into a more cost advantaged position than polypropylene.

As per another report by Freedonia, world demand for caps and closures will rise 4.6% annually through 2014. Growth will be based in part by a shift toward higher-value closures such as child-resistant, tamper-evident and dispensing types. Some of the best opportunities will be found in the Asia/Pacific region, where over two-fifths of market gains will occur.