Page 60 - Plastics News December 2016
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New trends hold promise for plastic caps
Directional changes among food and drink brands are providing opportunities in the caps and
closures market, according to research group Euromonitor International
Directional changes among food and drink brands However, the packaging segment in India is an amalgamation
are providing opportunities in the caps and closures of both organized and unorganized players ranging from
market, according to research group Euromonitor very small players with limited presence to big players with
large market share. Demand for this segment is anticipated
International. Plastic is the to grow rapidly across all the players. Also there is an
main material for caps and increasing focus on innovative and cost effective packaging
accounts for 60 percent of materials. Thus, the industry players are keeping in track
the market, said Silvia de with the changing trends in packaging and making efforts
Almeida, packaging associate to capture the market with higher technology orientation.
at Euromonitor, speaking Further with a viewpoint of health and environment
at Plastics News Europe’s friendliness, the growth
Plastics Caps & Closures 2016 is packaging industry has
conference held in Barcelona been leading to greater
earlier in November. specialization and
sophistication amongst
Beverage flip-top closures will see the fastest demand the market players.
growth between 2015 and 2020, increasing 8.3 percent
annually, according to Euromonitor. De Almeida said the More over it could be said
main reason for this is strong growth in bottled water. that Plastics packaging
segment is poised to grow at a good rate with the major
Over the five-year period Euromonitor forecasts annual applications being in food, beverage and consumer goods.
growth of: 5.6 percent for overcaps (used, for example, Several factors are enhancing the demand and supply of
on salty snack packaging); 5.3 percent for zip and press plastics used in packaging across India such as high growth
closures; 3.9 percent for liquid carton closures; and 3.7 of end-user industry, dynamically changing lifestyles,
percent for screw closures. availability of feedstock, focus on manufacturing, etc.
However, gaining market share is difficult due to high
Sweet drinks are still dominant, but consumer trends in competition, fragmented market and cheap imports from
health and hydration are causing a shift to bottled water. the other nations. Thus to support the industry players to
And it’s not just water, but also tea and other ready-to- retain their margins following initiative has been taken.
drink beverages that consumers are switching to, said For e.g. To restrict plastic machinery imports from China,
Almeida. The healthy drink trend is attracting established the Plastics Machinery Manufacturers Association of India
brands to enter different market categories. (PMMAI) has suggested the government to extend the
imposing of antidumping duty on Chinese machinery for
“Who would have thought Nesquik would go into the another four years.
protein [drinks] business? But they did, and they’re doing
well,” said Almeida. This is expected to help the Indian industry grow to
be more competitive and increase exports. It will be
Brands are also responding to the “on-the-go” trend by beneficial for industry as well as the government as it
launching smaller bottles that are easier to carry. After would expand the country's ForEx reserve, improved
the success of its 250 milliliter can, Coca-Cola Co. has balance of payment and employment generation with
launched a 250 ml plastic bottle with the brand’s familiar industrial growth.
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.
• December 2016 • Plastics News 60
