Caps and Closures Market Overview :
Caps and Closures Market was valued at $39,200 million, and is expected to reach $56,057 million by 2022, supported by a CAGR of 5.3%.The primary function of caps and closures is to keep the container closed and the contents contained for the specified shelf life.
In addition, it provides a barrier to dirt, moisture, and oxygen and keeps the product secure from undesired premature opening.Caps and closures are mainly used in the packaging industry to preserve products to extend their shelf life. Caps and closures industry uses different type of materials to construct suitable product packaging, such as plastics, metals, rubber, and paperboard among others.
Packaging industry mainly drives the caps and closures market. The main function of packaging is to provide food and beverages with extended shelf-life and the products that preserve flavor, texture, and test for long time. Caps and closures help in the process of extending shelf-life of products and marketing of the brand. Moreover, the increase in demand for packaging market drives the caps and closures market towards growth globally. In addition, pharmaceuticals market, cosmetics and fast moving consumer goods (FMCG) are the factors that contribute in the growth of the market. However, the major restraint limiting the growth of caps and closures market is unstable price of raw materials such as High-density polyethylene (HDPE) and polypropylene (PP). Moreover, each factor has a distinct impact on the caps and closures market analysis for the forecast period. Eco-friendly caps and closures with the use of natural ingredients and recycling process is expected to provide ample of opportunities for this market to grow across the globe.
GLOBAL CAPS AND CLOSURES MARKET SEGMENTATION
Top Factors Impacting the World Caps and Closures Market for Food and Beverages
Growth in demand from packaging industry
Increase in demand for packaging industry is one of the major factors that drive the caps and closure in food and beverage market. As the main motive of packaging industry is to preserve food and beverages flavor, texture, test, and extend shelf-life of it. Caps and closures help in the process to extend shelf-life of products and provide barrier to dirt, moisture, and oxygen. In addition, the trend of moving from unpacked goods to packed goods in the developing countries such as India and China is on an increase.
Manufacturing Eco-friendly caps and closures with the use of natural ingredients and recycling process
Heavy promotion of Go-green projects and eco-friendly concepts by government of all countries provide ample of opportunity to the caps and closure market. Environment is getting affected due to the usage of plastics and other chemicals in the process of manufacturing caps and closures. Further, the requirement of eco-friendly caps and closures, which use more recycled and natural ingredients, such as wood and paper board are expected to increase. Moreover, by using eco-friendly material such as paper board, wood, bamboo, PCR (Post Consumer Resin), PIR (Post Industrial Resin), and PLA (polymerized Lactic Acid) among the rest, the wastage can be reduced, which will increase the market of caps and closures globally.
Unstable price of raw material
Instability in the cost of raw materials is the major restraint factor that limits the growth of the caps and closures market. Volatile cost of raw material such as terephthalate, polypropylene (PP), polycarbonate, aluminum, and steel among others in caps and closure manufacturing affect the growth of the market. As the demand of caps and closures is on a rise, the cost of raw materials also increases, which affects the profit and cost of manufacturing caps and closures. As a result, the adoption rates of these raw materials slow down the different applications.
Top Winning Strategies
Acquisition and global expansion strategy largely drives the market. Agreement and product launch are other prominent strategies adopted by key players to remain competitive in the market. Almost 27% of the top strategies consisted of acquisition and global expansion among the key players in the caps and closures market. Agreement, product launch, and joint venture accounted for 23%, 18%, and 5%, respectively among the key strategies.
On the basis of geography, the market has been segmented into North America, Europe, Asia Pacific and LAMEA. LAMEA holds fastest market growth estimated at CAGR 6.9% in revenue and CAGR 5.8% in sales volume, followed by Europe which holds significant market share expected to grow at a CAGR of 6.0% in revenue and 3.3% in sales volume.
The key players in the global caps and closures market are 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), and BERICAP GmbH Co. & KG (Germany).
Other key players (not profiled in the report) are Oriental Containers, Pelliconi, Premier Vinyl Solution, Global Closure Systems, Blackhawk Molding Company Incorporated, Closure Systems International, Pact Group Holdings, Plastics Corporation, Capsugel Inc., and Agropur Cooperative.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides an extensive analysis of the current and emerging market trends and dynamics in the global caps and closures market.
- Geographically, the market is analyzed based on North America, Europe, Asia-Pacific, and LAMEA. Comprehensive analysis of all regions is provided that determines the prevailing opportunities in these geographies.
- Comprehensive analysis of factors that drive and restrict the growth of the caps and closures market is provided. For instance, caps and closures industry, pharmaceutical, cosmetic, and FMCG; however, the unstable price of raw material is expected to majorly restrain the market.
- An in-depth analysis of current research and extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- Developments within the market are provided with key market dynamic factors that help understand the behavior of the market.
KEY MARKET SEGMENTS
BY PRODUCT TYPE
- Food Caps and Closures
- Easy-Open Can Ends
- Metal Lug Closures
- Peel-Off Foils
- Plastic Screw Closures
- Beverages Caps and Closures
- Metal Crowns
- Metal Screw Closures
- Plastic Screw Closures
- Alcoholic Beverages
- Non-Alcoholic Beverages
- Bottled Water
- Carbonated Soft Drinks
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East