The U.S. demand for caps and closures is projected to advance 4.0% per year to $11.1 billion in 2018, with unit demand exceeding 300 billion, according to a new study from The Freedonia Group. Gains will be driven by an acceleration in container unit growth relative to that of the 2008-2013 period, the continued popularity of single serving containers, and greater use of costlier product types, such as dispensing and child-resistant closures (CRCs). Preventing faster growth will be the maturity of several large beverage applications and competition from closureless packaging options such as aluminum cans, most stand-up pouches, blister packs and peelable lidding.
Beverages are the single largest cap and closure market, representing 33% of total value demand and 54% of total units in 2013. Pharmaceuticals, the second largest cap and closure market in value terms, will see the fastest growth through 2018, aided by the expansion of older segments of the population and the need to comply with government regulations and industry standards.