PET-Bottle Cap Market

Currently large manufacturers of beverages bottled into PET containers use two-component caps which in comparison to one-component caps provide better hold of carbon dioxide and better shape-keeping properties. However in 2007 share of two-component caps in general consumption volume started to decline. The reason is improved equipment and production technology of PET containers and caps, thus faults of one-component caps were balanced to a certain extent. Desire of beverage manufacturers to reduce production costs did the rest. Research of the Company “Abercade”.

PRODUCTION

Speaking about domestic production of caps for PET bottles, we should highlight that segment of one-component caps was settled several years ago; today many manufacturers work in this segment. Domestic production of one-component caps increased by 26.1% in 2007.

Leaders of one-component cap segment located in Russia are “Europlast” group (Moscow) with 11.4% of current domestic production volume, “Safe Cap Production” CJSC (Moscow Region) with 11%, and “Pet.Rus” LLC (Moscow Region) with 10.1%. There are smaller manufacturers also operating in the segment.

Meanwhile two-component caps account for about 60% of total domestic production. Segment of two-component caps for PET bottled grows actively – in 2007 production increased by 15.6%.

Leader of two-component cap production in Russia is “Alcoa CSI Vostok” LLC (Moscow) with 23.5% of total domestic output volume.

“Pet.Rus” with 11.9% has the second line in this rating; it is followed by “Europlast” with 9.2% and “Safe Cap Production” with 9%.

“Nitek-Plast-Service” LLC (Moscow) and “Bericap” LLC (Nizhniy Novgorod Region) provide respectively 7.2 and 6.3% of production volume respectively.

Aggregate share of leaders accounts for 67.1% of domestic production volume in segment of two-component caps in Russia.

Some beverage manufacturers have in-house production of one-component and two-component caps.

We should also highlight most important events of the review market: first, early in 2007 “NB-Retal” (Moscow Region) CJSC closed production of PET caps to focus on production of PET performs; second, “Grinton Enterprises” LLC (Moscow Region) reduced production of one-component caps in 2007 and in May 2008 closed this line completely. These events were conditioned by entrance to Russian market in 2006 of Ukrainian package producing company “Uniplast” CJSC which started its production facility in Noginsk of Moscow Region (“Pet.Rus” LLC).

CONSUMPTION

As it has been already said, today large manufacturers of beverages mainly use two-component caps for closure of PET containers. Main advantage of this cap is the special seal working as a leak-proof sealant which turns very important to keep carbon dioxide inside the bottle as outside temperature goes up or down. Besides, polyline seal helps to compensate uneven neck surface. Thus even in case PET container has some defects closure is still leak-proof.

Two-component caps account for 59.4% of consumption volume and 63.8% of its value.

Meanwhile one-component caps demonstrate certain share increase in consumption as well as in production. Improved quality and lower price are the key advantages attracting consumers.

The company “Alcoa CSI Vostok” is the leader of Russian market of PET caps with 18.2%. “Pet.Rus” controls about 13% of the market. “Europlast” is on the third line with 11.6%, while “Safe Cap Production” is the fourth with about 10%.

“Bericap” with 9.2% is on the fifth position.

Thus, top-five operators of Russian PET cap market control over two thirds of the market with aggregate share of 61.7%

IMPORT

In 2007 import of one-component PET caps accounted for 5.8% of domestic production.

The largest importing countries are Hungary, Poland and Italy aggregately providing over 62% of total import volume. Other active importers are USA and Switzerland. Top-five countries importing one-component PET caps account for 77% of import volume.

In 2007 major part of import volume in the review segment – over 95.2% – was provided by one-component caps for PET-bottled beverages.

About 2.5% of one-component caps import was provided by caps for dairy products. Other applications have no more than 2.5% of total import volume aggregately.

Segment of two-component PET caps accounted in 2007 for 60.5% of total import volume and 63.5% of its value. In general, import of two-component caps accounted for 3.8% of annual domestic production.

The largest importers of two-component caps to Russia are Hungary, Lithuania and Latvia – aggregately these three countries provide over 61% of import volume. Other active importers are Poland, USA and Ukraine. Beverage industry has over 92.1% of import volume, while dairy industry – about 4.8%. Other applications have no more than 3.1% of total import volume aggregately.

EXPORT

In 2007 export of one-component caps accounted for just over 9% of domestic production in the segment. Main share of export was meant for closure of PET-bottled beverages – 5% of export volume. Other applications have no more than 5.4% of export volume.

In terms of destination countries, over 36.3% of export volume goes to Ukraine, and 26.9% – to Kazakhstan. Other important export destination countries are Germany with 25.1% and Azerbaijan with 9.3%.

Thus, main export destination countries have about 98% of total export volume in segment of one-component PET caps.

Meanwhile in 2007 over 90% of export volume was provided by two-component PET caps. Through the review period export of this type of caps accounted for about 10% of domestic production in the segment.

In 2007 about 37% of export went to Kazakhstan, 24.4% – to Germany, 20.3% – to Azerbaijan, and 13% – to Ukraine. Aggregate share of top-four export destination countries accounts for about 94.8% of total export volume in the segment of two-component caps.

In 2007 major part of two-component caps export was provided by beverage industry – 72.3% in volume. Significant share of two-component caps export fell on 1 liter oil bottles – 20.4% in volume. Other applications have no more than 7.3% of export volume aggregately.

In general year 2007 was very important for PET cap market. Market of PET containers grows at high rates but domestic production of PET caps grows faster which stimulated export: in 2007 export almost doubled against 2006 while import declined.

In the future manufacturers of PET caps can face certain sales difficulties.

In 2007 for the first time share of two-component caps demonstrated decline trend.

Regional companies performed more actively.

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