The U.S. plastic closure market continues to witness steady growth, benefiting significantly from the ongoing conversion from metal to plastic closures. Continuous technological advancements in end-user industries such as beverage, food, personal care, automotive segments and household and industrial products are expected to provide new growth opportunities for plastic closures in the future.
New analysis from Frost & Sullivan (chemicalsandmaterials.frost.com), Strategic Analysis of U.S Plastic Closures Market, reveals that revenues in this market totaled $2.93 billion in 2006, and are likely to reach $3.89 billion in 2013.
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"Plastic closures presently dominate the overall U.S. closures market, accounting for approximately 72 percent volumes and 54 percent revenues," notes Frost & Sullivan Research Analyst Urmila Kishore. "Future prospects look equally strong, as closure-intensive plastic packaging is increasingly preferred over closure-less containers such as metal cans."
With regard to end-user segments, the beverage segment is presently the largest, accounting for almost 33 percent of the total demand. Soft drinks hold the largest share in this segment with 28 percent, followed by bottled water and coffee with 14 and 12 percent, respectively. A notable trend in this segment is that beverage producers are increasingly looking for offshore growth opportunities to offset the maturation in the overall U.S. beverage market. This is driving the cap and closure manufacturers to build capacity outside the United States.
Following the beverage segment, the foods segment is the second largest market for plastic closures. This segment continues to use a relatively large amount of metal, especially in sauces and condiment applications, thereby offering considerable market opportunity. Among other segments, the household and industrial chemicals (HIC) segment is one of the fastest growing market segments for both dispensing and child resistant closures.
However, the closures market is becoming increasingly competitive, driven by customer demand for novel products at competitive prices. Price competition in commodity-type packaging markets such as continuous thread and tamper evident type of closures has intensified slightly during the last few years due to higher manufacturing costs because of increasing raw material and energy prices.
"Evolving customer needs are forcing plastic closure suppliers to constantly improve and enhance their product offerings," says Kishore. "Although this is a challenge on one hand, it's equally an opportunity for suppliers to enhance their product offerings."
Going forward, market success will hinge primarily on technological investments, good customer service, and technical support. Therefore, it is imperative that closure suppliers heighten focus on consistent product innovation as well as deliver superior customer service.
Strategic Analysis of U.S Plastic Closures Market is part of the Chemicals & Materials Growth Partnership Services, which also includes research in the following markets: U.S Silicones in Medical Device Market, North American Medical Device Packaging Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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