Closure demand boosted through drink pack development
Findings by analyst Canadean suggest demand for lighter weight, environmentally friendly closures, and more convenient resalable pack solutions will lead to an additional 220 billion caps and closures being used over the next half decade.
The report predicts that the additional demand reflects many of the challenges ahead regarding packing beverages.
“Caps and closures are currently a fertile area for new product development and a key means of ‘adding value’, ‘convenience’ and differentiation to brands and packs in an increasingly competitive global marketplace,” the analyst stated.
According to Canadean, emerging markets such as China, India, Russia and Brazil are playing a major role in driving this demand, though the analyst said that even in more static and developed markets like Western Europe and North America, closure potential is strong.
“Intense competition between products and brands, coupled with consumer demands for more convenience and 'on-the-go' packs, environmental/legislation and new technology is changing the look of the caps and closures sector,” the report stated.
Canadean says that up to 2012 the share of plastic screw caps is expected to rise by three percentage points to 37 per cent from 2007 levels. Over the same period, sports caps will account for four per cent of total closure need as opposed to two per cent in 2007, though steel crowns and aluminium-based products may fall slightly as a consequence, the findings stressed.
In terms of the types of beverages driving demand, packaged water and beer are expected to amount for more than half of the industry’s closure needs by 2012, according to the report.
Canadean says that the highest percentage growth over the period is expected to come from newer categories, like drinking yoghurts and energy drinks as well as flavoured and soy milk goods.
Additional influences expected over the next five years on how closures are used on beverages will include the use of larger pack sizes for beer and carbonated drinks and smaller products for on-the-go still and sports drinks, Canadean claimed.