Twist-off lids are used for capping fats-and-oil products such as mayonnaise and other sauces, canned fruit and vegetables (including ketchup), juices and baby foods (puree, porridge and mixtures) into glass jars as well as for home-canning. The diagram below presents twist-off lids consumption segments by shares (%).
Source: Abercade Research Company
Marketing Research Analysis of the 2004-2007 market of twist-off lids
In 2004-2007, the volume of the domestic twist-off lids output was constantly growing, from 10.7% in 2005 through 13.3% in 2006 to 10% in 2007.
Such an intensive growth was connected with the fact that major producers of foodstuffs started using twist-off lids, which had practically ousted SKO lids. Today practically all major industrial lid consumers choose twist-off lids for capping. The largest Russian company producing twist-off lids is ТОКК Packing Wares Factory, which accounted for 61.7% of the total domestic output in 2007. It was followed by such companies as “Mosupakovka", "Kamyshinsky Glass Tare Works", and "Elabuga Ukuprplast".
Share of manufacturers in the 2007 domestic output of twist-off lids
Source: Abercade Research Company
Marketing Research Analysis of the 2004-2007 market of twist-off lids
The most widely used 0.5ml and 0.33ml jars are capped with twist-off lids 66 mm in diameter. They are used for packing mayonnaise, jam, marmalade, cucumbers and other products.
Lids 82 and 58 mm in diameter account for 25% and 15% of the annual Russian output respectively.
Lids 82 mm in diameter are mostly used by the population but some companies such as PomidorProm use them as well for capping 2- and 3-litre jars with marinated cucumbers and tomatoes. Lids 58 mm in diameter are used for capping 0.25-litre jars (with mayonnaise and custard). Lids 43 mm in diameter are also widespread; they are used for capping bottles with ketchup, juices and sauces. In 2007, the volume of output of such lids constituted 27% of the total twist-off output.
In 2004 through 2007, some changes took place in the twist-off lids output structure. Production of 43- and 82-mm lids increased while production of 58- and 53-mm lids decreased.
There is a trend in the structure of the twist-off lids output towards the production of lids of smaller diameters due to the fact that producers of canned foods use smaller jars (0.25-litre and 0.33-litre ones) more often. In 2006, the output of baby foods increased. Lid manufacturers responded to the demand and offered lids of small diameters (53, 48, 43 and 38 mm). Nonetheless, demand in this twist-off consumption segment is mostly met by importers. The smallest diameter of lids produced in Russia is 38 mm. In future domestic enterprises will possibly produce lids with the diameter of less than 38 mm.
Trends
The entire period from 2004 through 2007 witnessed an increase in the twist-off lids consumption, which slowed down in 2007. In 2004-2005 it grew by 21.5% and 20.9% respectively, while in 2007 it increased by only 8%. The 2008 forecast predicts a further growth of twist-off lids consumption complying with the growth of the main consumption sectors, which will constitute about 8-10%.
The dynamics of the 2004-2007 Russian market in kind suggests that demand for twist-off lids will prevail in 2008.
Consumption structure will not change; it will give preference to lids 82 mm in diameter. Consumption of lids with smaller diameters will increase as follows: to 18-10% of 66-mm lids, to 12-15% of 43-mm lids, to 10-12% of 58-mm lids, and to 7-10% of 38-mm lids.
Based on the data of Abercade Research Company
