Closure encounters of the interesting kind

For those of us who made it to the PCA's Industry Leaders Forum in Melbourne last week, we got to learn some interesting things about closures from Neil Highfield, the chap responsible for technical sales and business development at Melbourne-based Caps & Closures.

For those who didn't make it, here's a snapshot.

First he doled out some facts on a global scale: The closures market has an estimated global value of US$40 billion [Freedonia Group]; only 17.5% of this value is in the hands of the top six players; and global growth is estimated at 4% from 2013 to 2018 – mostly generated out of Asian developing countries.

In the absence of available stats for the local market, Highfield analysed the Australia/ New Zealand scene in terms of product types and trends.

The market is divided into two distinctive product groups: lower cost commodity items including closures for milk and other beverages; and value-added products with complex closures for healthcare, food and household applications. It's in the latter group where most of the closure innovation is emerging; innovation for commodity items is focused more on machinery/technology development to reduce manufacturing costs, he says.

Looking at the last ten years, some notable product shifts have taken place.

Probably the most significant change has been the switch from corks to screw caps in the wine market, a change driven initially by the winemakers' requirement for improved quality, but now it's the excellent functionality of the closure that maintains demand (not many young Australians of drinking age today own a corkscrew).

In the baby food sector, there's been a move from metal twist-off caps to plastic closures for flexible pouches; in the bottled water industry the progressive reduction of cap size and weight has initiated change; in the canned fruit sector metal cans have been replaced by plastic bottles, calling for a plastic closure to fit the 83mm wide mouth; and in the dairy sector we've seen moves from Snap Lok to Trilok, back to Snap Lok and then to foil seal closure systems, with no clear direction where it's headed and with change spurred mostly by cost concerns at supermarket level.

While keeping costs down is certainly a driver of change, the steady stream of product launches in the convenience category to cater for on-the-go consumption, he says, is the strongest driver of innovation globally and in the local market.

Closely linked to convenience is accessibility, and the ability to open a closure with ease. Did you know that 20 million Australians feel “frustrated or furious” when they can't open a product? And that over 12 million people have suffered an injury trying to open a pack? Highfield cited these figures from Arthritis Australia to emphasise the consideration closure manufacturers need to give accessibility as they innovate going forward.

In summing up his predictions for what lies ahead for closures, he reiterated that smaller pack sizes with more functional closures catering to the convenience trend will top the list as a driver of innovation; tamper evidence will need to be simplified to address the accessibility issue; and the growth in flexible pouches and fitments will continue apace – it's only held in check currently by manufacturers having sunk capital in equipment for traditional packaging formats.

He added that plastic will continue to replace metal closures; we can expect a growth in aseptic and UHT processing in line with requirements for food safety and extended shelf life, especially for export markets in the dairy sector; and on the flipside short shelf life products in the ready-to- eat space will drive growth. Increasing speed to market with innovation will be an ongoing customer expectation.

Highfield believes Australian packaging converters should be looking more keenly at export opportunities, that there is scope for growing business offshore.

And, in closing, he noted that as the FMCG market grows ever more competitive, packaging's shelf appeal will be key to success.