Barcelona — Directional changes among food and drink brands are providing opportunities in the caps and closures market, according to research group Euromonitor International.
Plastic is the main material for caps and accounts for 60 percent of the market, said Silvia de Almeida, packaging associate at Euromonitor, speaking at Plastics News Europe's Plastics Caps & Closures 2016 conference held in Barcelona Nov. 9 -10.
Beverage flip-top closures will see the fastest demand growth between 2015 and 2020, increasing 8.3 percent annually, according to Euromonitor. De Almeida said the main reason for this is strong growth in bottled water.
Over the five-year period Euromonitor forecasts annual growth of: 5.6 percent for overcaps (used, for example, on salty snack packaging); 5.3 percent for zip and press closures; 3.9 percent for liquid carton closures; and 3.7 percent for screw closures.
Sweet drinks are still dominant, but consumer trends in health and hydration are causing a shift to bottled water. And it's not just water, but also tea and other ready-to-drink beverages that consumers are switching to, said Almeida.
The healthy drink trend is attracting established brands to enter different market categories.
“Who would have thought Nesquik would go into the protein [drinks] business? But they did, and they're doing well,” said Almeida.
Brands are also responding to the “on-the-go” trend by launching smaller bottles that are easier to carry. After the success of its 250 milliliter can, Coca-Cola Co. has launched a 250 ml plastic bottle with the brand's familiar red cap.
Smaller bottle sizes will become more widespread in many drinks segments, with Almeida particularly noting the growth in dairy drinks, such as drinking yogurt.