Caps and Closures Market Overview
Caps and Closures Market
size is forecast to reach US$85.3 billion by 2027, after growing at a CAGR of 5.3%
during 2022-2027. Caps and closures are plastic packaging on top of bottles,
jars, tubes, cans, and so on. Caps and closures are of different types such as
screw top, corks, metal crowns, Snap-On, friction fit, tamper-evident, and
dispersing. Caps and closures find a broad range of applications in numerous
industries such as beverages, cosmetics, and pharmaceuticals. The increasing
bottled water and the packaging from the pharmaceutical industry are mainly
driving the market growth during the forecast period. The material used to
manufacture caps and closures must possess an excellent balance of stiffness
and toughness along with good chemical resistance. Factors such as stringent
regulations in the caps and closures industry with regards to the use of
plastic caps and closures as well as growing demand for the substitute
packaging options, such as blister packaging options are factors that are
expected to affect the growth of the global caps and closures market. The
widely used material for manufacturing caps and closures are polyethylene terephthalate
(PET), polypropylene
(PP), High-Density Polyethylene (HDPE), and others. The growing consumers’
demand for convenience products is one of the major factors driving the market
growth during the forecast period.
Covid-19 Impact
The outburst of the covid-19 has specified several
extraordinary challenges to all manufacturers and production companies. The caps
and closures industries also confronted a lot of difficulties in assembling
plastic and receiving the workforce as the whole world was under quarantine.
The gathering of the raw material and the delivery of the end product all was
at stake during the lockdown. However, after a while, the market was back to
normal when certain rules were changed. With the change where everyone around
the world has to turned into extra aware of environmental safety. As the
lifestyles have transformed people are choosing to be healthier and more
sustainable after the pandemic.
Report Coverage
The report “Caps and Closures
Market– Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis
of the following segments of the Caps and Closures Industry.
By Material Type: Plastic (Polyethylene
Terephthalate (PET), Polypropylene (PP), High-Density Polyethylene (HDPE), Low-density
polyethylene (LDPE), and Others), Metal (Steel, Aluminum, and Others), and Others
By Product Type: Easy-open Can Ends, Metal
Lug Closures, Peel-off Foils, Plastic Screw Closures, Metal Crowns, Metal Screw
Closures, Corks, Plastic Screw Closures, and Others
By Type: Continuous Thread Closures, Dispensing
Closures, Tamper-Evident Closures, Bar-Top Closures, Child-Resistant Closures,
and Snap-On Closures
By Application: Beer, Wine, Bottled Water,
Carbonated Soft Drinks, and Others
By End-use Industry: Packaging, Food Packaging,
Beverages Packaging, Personal care, and Cosmetics Packaging, Pharmaceutical
packaging, Toiletries Packaging, and Others
By
Geography: North America (USA, Canada and Mexico), Europe
(UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of
Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand,
Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile, Rest of South America), and Rest of the world (Middle East and Africa)
Key Takeaways
- Asia Pacific dominates the caps and closures market owing to a rapid increase in the packaging
sector.
- Rising demand for bottled water is expected to drive the demand for caps and closures over the forecast period.
- The growing demand for pharmaceutical packaging is driving
the market for caps and closures during the forecast period.
- Stringent government regulation on banning polymer products
is hampering the market growth.
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Caps and Closures Market Segment Analysis - By Material Type
The plastic segment holds the largest
share in the caps and closures market in 2021 and is forecast to grow at 5.6%
CAGR during 2022-2027. Caps and closures are
made using several types of rugged polymers, including polyethylene
terephthalate (PET), Polypropylene (PP), High-Density Polyethylene (HDPE), Low-density
polyethylene (LDPE), and others. Caps and closures provide a safe, secure way
to ship medicines and small consumer items, offering additional protection when
goods are transported inside custom cardboard boxes. Owing to its advantages
like cost-effectiveness, Food and Drug Administration (FDA) approved the
plastics make it the most preferable material in the caps and closures
manufacturing and certainly escalate the growth of the market.
Caps and Closures Market Segment Analysis - By End-Use Industry
The food packaging segment holds the
largest share in the caps and closures market in 2021 and is forecast to grow
at 4.5% CAGR during 2022-2027. Owing to the rapid industrialization and
urbanization, there is an unprecedented endorsement for packaged food across
the world especially in developing countries such as India and China. The
growing demand for bottled drinks is made mostly by PET, due to their
versatility in shape and size. It is entirely recyclable and also the highest
recycled plastic worldwide. It is recycled by carefully washing and re-melting
it, or by chemically breaking it down to its component materials to make new
PET polymer. For instance, the Canada PET recycling rate was 27.9% in 2019. The
rising demand for polyethylene terephthalate in food and beverages packaging
such as carbonated soft drinks packaging contributed to the growth of the caps
and closures market. The growing significance of packaging
in the food industry is eventually propelling the growth of the plastic caps
and closure market since the caps and closure are prominent parts of the
packaging and play vital role in preserving the quality of the food packed.
Caps and Closures Market Segment Analysis - By Geography
Caps and
Closures Market Drivers
Increase demand for Bottled Water
The Demand from Pharmaceutical Packaging Sector is Driving the Market
Packaging
of healthcare products reduces the possibility of product contamination and
protects healthcare products from moisture, gas, light and temperature. This is
driving the demand for caps and closures in the pharmaceutical end-use sector. After
the pandemic, the demand for healthcare facilities, medicine related products
are in high demand and eventually growing daily. For instance, in 2020 Mondi,
UK based packaging company has recently developed packaging for QIAGEN's
SARS-CoV-2 coronavirus test kit consisting of a polyester, aluminum,
polyethylene packaging, and caps construction to provide the necessary
protection from light and moisture so that the test kits are not compromised
before they are used. The development in the healthcare sector is driving the
caps and closures market rapidly for like, the French fund Lauxera Capital
Partners, which was launched in 2020 in Paris and San Francisco, announced a
US$121 million fund to support European healthcare startups. Whereas, in India,
the government invested US$8.80 billion outlay for the healthcare sector over
six years in the Union Budget 2021-22 to strengthen the existing National
Health Mission by developing capacities of primary, secondary, and tertiary
care, healthcare systems, and institutions for detection and cure of new &
emerging diseases. With the rapid growth rate in the healthcare sector, the
demand for caps and closures will parallelly increase and certainly have a
positive impact on the caps and closures market.
Caps and
Closures Market Challenges
Stringent Government Regulations and Banning of Polymer Products Impede Market Growth
The FDA has pressurized manufacturers to submit data
regarding the long-term health impact of inorganic substances in Plastics
particularly hormonal effects and contributors to anti-biotic resistant
bacteria, to ascertain the safety of medical use Plastics products like gloves.
The most
common plastic in use to produce containers and caps and closures of packed
drinking water is polyethylene terephthalate (PET), which takes 400 years to naturally
decompose in nature. While these plastics are highly recyclable, less than half
the bottles sold are collected for recycling and just 7% of them are being
recycled. Due to its low cost, easy transportation, low weight, and high
resistance as well as lack of taste and aesthetic problems, PET is widely used
for packaging a wide variety of edible products including water. As plastic
bottles are not readily biodegradable, the main challenge is their durability
in the environment. The discarded PET bottles have a high potential to be an
environmental catastrophe, especially in economically developing countries if
not recycled sufficiently. Thus, hampering the market growth of caps and
closures in the forecast period.
Caps and Closures Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Caps and Closures top 10 companies include:
- RPC Group Plc (UK)
- Reynolds Group Holdings Limited (New Zealand)
- Crown Holdings Inc. (U.S.)
- Amcor Limited (Australia)
- Rexam PLC (UK)
- Berry Plastics Corporation (U.S.)
- Silgan Holdings Inc. (U.S.)
- AptarGroup Inc. (U.S.)
- Guala Closures Group (Italy)
- BERICAP GmbH Co. & KG (Germany).
Recent Developments
- In 2020, Borealis and MENSHEN combined launched a technology that
unites the Borealis recycling and compounding expertise with its own. These
packaging solutions are predominantly made for use in laundry and home care and
include also 2K closures.
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