PETpla.net Insider 09 / 2013

CAPPING / CLOSURES 58 PET planet insider Vol. 14 No. 09/13 www.petpla.net Canadean predicts growth in the closure market to be led by newer markets, beer, packaged water, iced tea and still drinks The shape of things to come Global beverage closure market 2009-11 - by region Volume - thousands of units Region 2009 2010 2011 CAGR 2009-10 CAGR 2010-11 Asia 348,911 375,716 400,513 7.68% 6.60% East Europe 76,413 76,059 73,169 -0.46% -3.80% Latin America 147,884 153,322 159,608 3.68% 4.10% North America 244,349 242,761 239,119 -0.65% -1.50% Rest of World 25,058 25,836 26,534 3.10% 2.70% West Europe 180,125 179,793 175,658 -0.18% -2.30% TOTAL 1,022,740 1,053,487 1,074,601 3.01% 2.00% Fig. 1 Canadean, the research company that specialises in analy- sis of the beverage packaging and soft drink and alcoholic beverage industries, says that growth in the period 2011-15 will be led by the developing markets, particularly Asia and Latin America, and that beer, water, iced tea and still drinks will have the largest physical share of growth. The seg- ments expected to show the highest year-on-year growth rates will be iced tea, still drinks, energy drinks and soymilk. The total global beverage closure market in 2011 amounted to 1,075 billion units, which was 2% more than the pre- vious year and just over 5% higher than 2009. Asia remains the fastest-growing region with a 6.6% uplift, slightly slower than the previous year. Latin America follows with 4.1% and the Rest of the World (Africa, Middle East, Australasia, etc) was also in positive territory, with a 2.7% increase. As to sales in Western Europe, North America and Eastern Europe these regions are still below 2009 levels although Canadean reports some signs of pickup in Western Europe and North America in Q3 2012 but emphasised that the situation remains very mixed (Fig.1). Beer, carbonates and packaged water together accounted for 71% of the total volume of closure sales in 2011 but Canadean identifies energy drinks, iced tea, still drinks and soymilk as key growth categories. Packaging and clo- sures actually grew slightly faster than beverage consumption, which reflects the global trend towards packaged prod- ucts. In terms of closures, plastic screw- tops (37%), metal crown corks (24%) and ring-pulls (24%) lead but it is again the categories with smaller market shares that lead the growth statistics; in the case of sports closures, by a long way at over 17% CAGR from 2009-10 and 10% from 2010-11 (Fig. 2). The current core trend towards light- weight, single-piece closures is expected to continue; enhanced features and func- tionality, with little on-cost, will appear. There is also the expectation of further polarisation between high-volume, including economy and private label, and well-established premium brands. This is expected to lead to further diversity in the variety and types of closures avail- able. Asia is expected to maintain its posi- tion as the fastest-growing market in the period 2011-15 with a total increase of 29.4%. Latin America, the Rest of the World and Eastern Europe will also show strongly. Western Europe and N America remain large and important but continue to be slow to throw off the economic consequences of the banking crisis of 2007-8. Packaged water, beer, still drinks and iced tea, in that order, are forecast to lead growth to 2015. In terms of growth rates, energy drinks are expected to see the highest levels (30.7%), followed by iced tea (29.4%), drinking yoghurt and flavoured milk. Sports caps and other plastic closures are expected to show strong growth through to 2015, led in