Abstract
Increased Manufacturing Costs Make Pricing a Key Differentiator for Suppliers in the U.S. Caps
and Closures Market
Price competition in some of the commodity type packaging markets such as continuous thread and
tamper evident has intensified over the past few years. Increasingly, suppliers have to compete on
price in order to build a long-term strategic partnership with their customers. Closure products
such as metal crowns have minimal product differentiation and this gives the customer better
bargaining powers while determining the supply price. Nonetheless, this has not resulted in a
significant dip in prices, since rising raw material and energy prices are adding to the
manufacturing costs. Most suppliers have contracts with their customers and the increased raw
material costs are being passed on to them. However, energy costs will have to be borne by
suppliers, and this eventually impacts their profit margins.
This Frost & Sullivan research service covers the U.S. caps and closures market. The study
examines the segmentation by material types and discusses market trends. It also incorporates the
top challenges facing the industry and provides strategic recommendations to address each of them.
Changing Consumer Trends Call for Value-added Packaging Products
Higher level of consumer spending and changing consumer tastes have translated into an increase
in line extensions and new product introductions. Amidst this, the need for product differentiation
has made packaging a critical component of branding, merchandising, and promotional activities.
Packaging companies are constantly trying to improve package design by investing in research and
development. Among the many trends is the rising popularity of over caps and the shift from metal,
glass, and paperboard containers to plastics. "The changing consumer demands for dispensing of
products will increase the need for more complex and high-end closures in the future," notes
the analyst of this research.
Increasingly, buyers are locally sourcing materials in order to minimize the lead-time for
bringing out products to the market. Further, they are consolidating their vendor base to ensure
supply of products with consistent quality. This involves reducing prices to cater to the few larger
customers that expect suppliers to support them on a global basis. Such a supply chain constriction
is all about strategic sourcing by bundling larger percentages of global requirements.
However, while acquiring capabilities to supply on a global scale, small and medium-sized vendors
will be challenged to consistently meet customer requirements with their limited resources and this
makes them strong targets for takeover by bigger participants.
Collaborating with Customers in New Product Development Can Help Counter Pricing Pressure
Operational excellence coupled with constant product development to meet customer needs is likely
to help the cap and closure suppliers to counter the bargaining power of the buyers. For instance,
suppliers can collaborate with customers to develop new products and focus on custom development of
products for specific needs of the client. "Changing consumer needs is one of the most
important factors that would impact the caps and closures market in the United States," says
the analyst. "The market is in the growth phase and proactive steps to understand the varying
needs of consumers will help companies gain competitive advantage in the future."
Table of Contents
- 1. Executive Summary
- 1. Market Overview
- 1. Introduction
- 2. Competitive Analysis
- 3. Market and Technology Trends
- 2. Research Findings
- 1. Opportunities and Forecasts
- 2. Market Segment Analysis
- 3. Conclusion
- 4. Glossary of Terms
- 2. Industry Dynamics
- 1. Industry Challenges
- 1. Introduction
- 2. Major Challenges Facing the Caps and Closures Market
- 2. Market Dynamics
- 1. Mergers and Acquisitions
- 2. Joint Ventures and Agreements
- 3. Total U.S. Caps and Closures Market
- 1. Overview and Definitions
- 1. Introduction
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 2. Forecasts and Trends
- 1. Unit Shipment and Revenue Forecasts
- 2. Market Trends
- 3. Pricing Trends
- 3. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 4. Recommendations and Evaluations
- 1. Introduction and Overview
- 2. Strategic Recommendations to Counter the Pricing Pressure
- 3. Strategies to Cope with Changing Consumer Needs
- 4. Strategies to Counter Industry Consolidation
- 5. Strategies for Maintaining Optimal Lead Time
- 6. Strategies to Tackle Consolidation Among Customer Base
- 7. Strategies for Easing Local Sourcing of Materials by Customers
- 5. Frost & Sullivan Awards
- 1. Growth Strategy Leadership Award
- 2. Business Development Strategy Leadership Award
- 3. Product Line Strategy Leadership Award
- 4. Product Differentiation Innovation Award
- 5. Customer Service Leadership Award
- 4. Metal Caps and Closures Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecasts
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trends
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Metal Crowns Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trends
- 8. Competitive Structure
- 9. Strategic Analysis and Forecasts End User Type
- 6. Metal Closures Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trends
- 8. Competitive Structure
- 9. Strategic Analysis and Forecasts by End User Types
- 5. Plastic Caps and Closures Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 2. Market Engineering Unit Shipment and Revenue Forecasts
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecasts
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trend
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Continuous Thread Closures Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trend
- 8. Competitive Structure
- 9. Strategic Analysis and Forecasts by End User Types
- 6. Tamper Evident Closures Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecast
- 6. Other Market and Technology Trends
- 7. Pricing Trend
- 8. Competitive Structure
- 9. Market Share Analysis
- 10. Strategic Analysis and Forecast by End User Types
- 7. Child Resistant Closures Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trend
- 8. Competitive Structure
- 9. Market Share Analysis
- 10. Strategic Analysis and Forecasts by End User Types
- 8. Dispensing Closures Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 3. Market Drivers
- 4. Market Restraints
- 5. Unit Shipment and Revenue Forecasts
- 6. Other Market and Technology Trends
- 7. Pricing Trend
- 8. Competitive Structure
- 9. Market Share Analysis
- 10. Strategic Analysis and Forecasts by End User Types
- 6. Other Caps and Closures Market
- 1. Overall Market
- 1. Market Overview
- 2. Market Engineering Measurement Analysis
- 2. Market Engineering Unit Shipment and Revenue Forecast
- 1. Market Drivers
- 2. Market Restraints
- 3. Unit Shipment and Revenue Forecasts
- 3. Trend Analysis
- 1. Market and Technology Trends
- 2. Pricing Trends
- 4. Competitive Analysis
- 1. Competitive Structure
- 2. Market Share Analysis
- 5. Strategic Analysis and Forecast by Other Types of Closures
- 1. Natural Cork Application
- 2. Synthetic Cork Application
- 3. Rubber Closures Application
- 7. Appendix
- 1. Decision Support Database Tables
- 1. Real GDP of U.S. Between 2001-2011
- 2. Consumer Confidence Index U.S. 2001-2011
- 3. Average Fuel Costs for the Electric Power Industry
- 4. Personal Disposable Income
- 5. Population by Age Group
List of Figures
- Caps and Closures Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Caps and Closures Market: Impact of Top Industry Challenges (U.S.), 2005-2011
- Caps and Closures Market: Some of the Major Mergers and Acquisitions (U.S.), 2004
- Caps and Closures Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Caps and Closures Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Caps and Closures Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Caps and Closures Market: Revenue Share Trends by Material Type (U.S.), 2001-2011
- Caps and Closures Market: Unit Shipment Share Trends by Material Type (U.S.), 2001-2011
- Caps and Closures Market: Weighted Average Price of Caps and Closures by Material Type (U.S.),
2004
- Caps and Closures Market: Competitive Structure (U.S.), 2004
- Caps and Closures Market: Major Participants by Product Type (U.S.), 2004
- Caps and Closures Market: Top Industry Participants by Material Type (U.S.), 2004
- Beverage Containers Market: Weighted Average Price of Beverage Containers by Material Type
(U.S.), 2004
- Metal Caps and Closures Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Metal Caps and Closures Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Metal Caps and Closures Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Metal Caps and Closures Market: Revenue Share Trend by Closures Type (U.S.), 2001-2011
- Metal Caps and Closures Market: Unit Shipments Share Trend by Closures Type (U.S.), 2001-2011
- Metal Caps and Closures Market: Weighted Average Price by Closures Type (U.S.), 2004
- Metal Caps and Closures Market: Competitive Structure (U.S.), 2004
- Metal Caps and Closures Market: Products Offered by Major Participants by Closures Type (U.S.),
2004
- Metal Caps and Closures Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- Metal Crowns Market: Market Drivers of Metal Crowns Ranked in Order of Impact (U.S.), 2005-2011
- Metal Crowns Market: Market Restraints of Metal Crowns Ranked in Order of Impact (U.S.),
2005-20114
- Metal Crowns Market: Metal Crowns Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Metal Crowns Market: Competitive Structure of Metal Crowns Market (U.S.), 2004
- Metal Crowns Market: Beverages End-use Market Unit Shipments Forecast (U.S.), 2001-2011
- Metal Closures Market: Market Drivers of Metal Closures Ranked in Order of Impact (U.S.),
2005-2011
- Metal Closures Market: Market Restraints of Metal Closures Ranked in Order of Impact (U.S.),
2005-2011
- Metal Closures Market: Metal Closures Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Metal Closures Market: Competitive Structure of Metal Closures Market (U.S.), 2004
- Metal Closures Market: Metal Closures Unit Shipments Share Trend by End-user Type (U.S.),
2001-2011
- Metal Closures Market: Food End-use Market Unit Shipments Forecast (U.S.), 2001-2011
- Metal Closures Market: Personal Care End-use Market Unit Shipments Forecast (U.S.), 2001-2011
- Metal Closures Market: Pharmaceuticals End-use Market Unit Shipments Forecast (U.S.), 2001-2011
- Metal Closures Market: Beverages End-use Market Unit Shipments Forecast (U.S.), 2001-2011
- Plastic Caps and Closures Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Unit Shipment and Revenue Forecast (U.S.), 2001-2011
- Caps and Closures Market: Revenue Share Trends of the Plastic Caps and Closures Market by
Closure Type (U.S.), 2001-2011
- Caps and Closures Market: Unit Shipment Share Trends of the Plastic Caps and Closures Market by
Closure Type (U.S.), 2001-2011
- Plastic Caps and Closures Market: Weighted Average Price of Plastic Caps and Closures by Closure
Type (U.S.), 2004
- Plastic Caps and Closures Market: Competitive Structure (U.S.), 2004
- Plastic Caps and Closures Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- Plastic Caps and Closures Market: Market Drivers of Continuous Thread (CT) Closures Ranked in
Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Market Restraints of Continuous Thread (CT) Closures Ranked in
Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Continuous Thread Closures Unit Shipment and Revenue Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Competitive Structure of Continuous Thread Closures Market
(U.S.), 2004
- Plastic Caps and Closures Market: Continuous Thread Closures Unit Shipment Share Trend by
End-user Market (U.S.), 2001-2011
- Plastic Continuous Thread Caps and Closures: Beverages End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Continuous Thread Caps and Closures: Food End-use Market Unit Shipments Forecast (U.S.),
2001-2011
- Plastic Continuous Thread Caps and Closures: Household and Industrial Chemicals End-use Market
Unit Shipments Forecast (U.S.), 2001-2011
- Plastic Continuous Thread Caps and Closures: Pharmaceuticals End-use Market Unit Shipments
Forecast (U.S.), 2001-2011
- Plastic Continuous Thread Caps and Closures: Personal Care End-use Market Unit Shipments
Forecast (U.S.), 2001-2011
- Plastic Continuous Thread Caps and Closures: Automotive End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Market Drivers of Tamper Evident (TE) Closures Ranked in Order
of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Market Restraints of Tamper Evident (TE) Closures Ranked in
Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Tamper Evident Closures Unit Shipment and Revenue Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Competitive Structure of Tamper Evident Closures Market
(U.S.), 2004
- Plastic Caps and Closures Market: Market Share of Major Participants Based on Unit Shipments
(U.S.), 2004
- Plastic Caps and Closures Market: Tamper Evident Closures Unit Shipment Share Trend by End-User
Market (U.S.), 2001-2011
- Plastic Tamper Evident Caps and Closures: Beverages End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Tamper Evident Caps and Closures: Food End-use Market Unit Shipments Forecast (U.S.),
2001-2011
- Plastic Tamper Evident Caps and Closures: Household and Industrial Chemicals End-use Market Unit
Shipments Forecast (U.S.), 2001-2011
- Plastic Tamper Evident Caps and Closures: Pharmaceuticals End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Tamper Evident Caps and Closures: Automotive End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Market Drivers of Child Resistant (CR) Closures Ranked in
Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Market Restraints of Child Resistant (CR) Closures Ranked in
Order of Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Child Resistant Closures Unit Shipment and Revenue Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Competitive Structure of Tamper Evident Closures Market
(U.S.), 2004
- Plastic Child Resistant Caps and Closures Market: Market Share of Major Participants Based on
Unit Shipments (U.S.), 2004
- Plastic Caps and Closures Market: Child Resistant Closures Unit Shipment Share Trend by End-User
Market (U.S.), 2001-2011
- Plastic Child Resistant Caps and Closures: Pharmaceuticals End-use Market Unit Shipments
Forecast (U.S.), 2001-2011
- Plastic Child Resistant Caps and Closures: Household and Industrial Chemicals End-use Market
Unit Shipments Forecast (U.S.), 2001-2011
- Plastic Child Resistant Caps and Closures: Personal Care End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Child Resistant Caps and Closures: Automotive End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Caps and Closures Market: Market Drivers of Dispensing Closures Ranked in Order of
Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Market Restraints of Dispensing Closures Ranked in Order of
Impact (U.S.), 2005-2011
- Plastic Caps and Closures Market: Dispensing Closures Unit Shipment and Revenue Forecast (U.S.),
2001-2011
- Plastic Caps and Closures Market: Competitive Structure of Dispensing Closures Market (U.S.),
2004
- Plastic Dispensing Caps and Closures Market: Market Share of Major Participants Based on Unit
Shipments (U.S.), 2004
- Plastic Caps and Closures Market: Dispensing Closures Unit Shipment Share Trend by End-user
Market (U.S.), 2001-2011
- Plastic Dispensing Caps and Closures: Food End-use Market Unit Shipments Forecast (U.S.),
2001-2011
- Plastic Dispensing Caps and Closures: Household and Industrial Chemicals End-use Market Unit
Shipments Forecast (U.S.), 2001-2011
- Plastic Dispensing Caps and Closures: Pharmaceuticals End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Plastic Dispensing Caps and Closures: Personal Care End-use Market Unit Shipments Forecast
(U.S.), 2001-2011
- Other Caps and Closures Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Other Caps and Closures Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Other Caps and Closures Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
- Other Caps and Closures Market: Unit Shipments Share Trend by Closures Type
- Other Caps and Closures Market: Revenue Share Trend by Closures Type (U.S.), 2001-2011
- Other Caps and Closures Market: Weighted Average Price of Other Types of Caps and Closures
during Forecast Period (U.S.), 2004
- Other Caps and Closures Market: Competitive Structure (U.S.), 2004
- Other Caps and Closures Market: Products Offered By Major Participants by Closure Type (U.S.),
2004
- Natural Corks Market: Market Share of Major Participants Based on Unit Shipments (U.S.), 2004
- Natural Corks Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
- Synthetic Closures Market: Market Share of Major Participants Based on Unit Shipments (U.S.),
2004
- Synthetic Closures Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
- Rubber Closures Market: Unit Shipment and Revenue Forecasts (U.S.), 2001-2011
|
