Originally Published PMPN November
2004
NEWS
New Report Shows Increase in Cap and Closure Demand |
| Comparison of past and projected demands for pharmaceutical cap and closure market (click to enlarge). |
A new study by The Freedonia Group Inc. (Cleveland) forecasts the U.S.
demand for caps and closures to grow a healthy 5.9% per year to $6.8 billion
in 2008. That figure would represent close to 210 billion units, according to
the market research firm.
Much of that growth should be fueled by a continued shift in the product mix,
the study’s authors say. The shift will be toward value-added configurations
such as child-resistant closures (CRCs) and dispensing systems, which typically
use an additional secondary overcap. The study suggests that child-resistant
closures in particular will benefit from the October 2002 ruling by the Consumer
Product Safety Commission (CPSC). That ruling expanded the range of products
requiring CRCs.
However, caps and closures are expected to experience below-average growth in
terms of pharmaceutical packaging products overall, says the report. That demand
will increase 2.9% annually, to $675 million and 15.2 billion units by 2008.
Expanding market penetration of blister packs and other closureless containers
will moderate faster gains.
Plastic materials are expected to dominate pharmaceutical closure production
based on cost, processing ease, and weight-reduction advantages. Specifically,
child-resistant closures will account for the biggest demand due to greater
design complexity and activity centered on increasing senior-friendliness.
But overall, standard plastic and metal closures without security features will
continue to lead unit demand based on cost, the study says. That demand will
also be based on widespread uses in ethical medication shipped directly to retail
dispensing pharmacies.
Elsewhere, value-added dispensing closures such as disks, pump types, dropper
assemblies, and squeeze tops will continue growth as a trend. The report makes
special mention of compliance caps that remind patients to take medication,
as well as advanced caps featuring time-display devices on the cap’s top
surface.
The study also predicts that metal threaded caps will decline in usage due to
cost and processing disadvantages relative to plastic closures. Oral ethical
drugs packaged in large-volume bulk containers will account for most applications,
with wide-mouth glass jars of topical medication accounting for most usage of
metal child-resistant closures. This product group will grow modestly, thanks
to design improvements and a changing sales mix toward higher-value-added configurations.
The study also says that while opportunities for metal closures have been limited
by competition from plastics, potential for growth still exists in niche applications
such as composite plastic/metal closures. The report also states that rubber
closures are likely to benefit from emerging biotech applications. However,
competition from aluminum seal closures and maturity in the parenteral market
may potentially limit further growth in that area.
About 100 companies currently produce pharmaceutical caps and closures in the
United States, according to the report. That number includes large, integrated
packaging companies as well as small, private firms operating in a limited geographic
market or producing a specialized range of products.
Copyright ©2004 Pharmaceutical & Medical Packaging News
