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Monday, October 03, 2005

Caps and closures use in packaging predicted to rise

According to world renowned research group Freedonia, accelerating economic growth, increased demand from China and packaging such as gabletop and aseptic drink cartons and plastic pouches no adding closures, an average growth rate of 4.8 percent by 2009 is expected for closures and caps in packaging.

Even though the price of raw materials has caused a spike in the pries of plastic packaging components, since they are few or no alternatives to caps and closures used in packaging, their sales are not expected to suffer but actually thrive.

the Increase in cost for the raw materials used in caps and closures have no only increased the short supply of raw materials due to a double wallop of hurricanes to the Gulf region this year, a huge increase in demand by China driven by dispensing caps and closures, child resistant safety caps, and overcaps are putting a squeeze on supply and driving material costs up.

We have all seen a dramatic decline in the use of metal caps for packaging and this void in the market has been predominantly filled by plastic caps and closures.

In a bold move, the makers of Dannon yogurt Dannone, now saves 3.6 million pounds of plastic each year by eliminating the plastic overcaps formally used on their 6 oz yogurt package. While this tactic worked form Dannon, most companies don't have the luxury of being able to remove excess packaging in order to increase packaging savings.

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