The global caps and closures market is projected to grow at a CAGR of 4.73% to reach US$72.701 billion by 2027, from US$52.609 billion in 2020.
The global caps and closures market derives its demand from other industries such as food and beverage and pharmaceuticals, among others. These industries integrate caps or closures into their own products to avoid contamination and to extend the shelf life of the main product.
The increase in demand for food, alcoholic or non-alcoholic drinks, pharmaceuticals, and cosmetics coupled with rising incomes and growing health awareness would make this market witness an uptick throughout the forecast period The most commonly used raw material is plastic because it is durable and can be molded into the desired shape. Extensive research and development in developing eco-friendly caps and closures might drive the market’s growth in the long run as plastic is being targeted for infiltrating products with toxic substances. Besides the quality of raw material, the easy-to-handle characteristic is also given importance as it can be a distinguishing feature of the products for customers. Pharmaceutical companies are infusing smart features into their covers to transfer relevant information to consumers.
The global caps and closure industry is growing due to increased reliance on packaged beverages.
The changing lifestyles of people are increasing the sales of closed beverages like energy drinks and alcoholic drinks. The rising working-class population is escalating the demand for on-the-go food products and drinks. This is augmenting the demand for packaged food items and, indirectly, that of the caps and closures market. Caps and closures of alcoholic drinks are a dynamic segment wherein a variety of caps have been invented for different kinds of wines and for the wines to be kept for a different duration. Eco-friendly caps and closures made of wood and paper board are expected to bring radical change and growth to this market.
The global caps and closure market also faces some challenges in terms of the cost of raw materials. The prices of polypropylene, polycarbonate, and aluminum, among others, fluctuate and hamper the seamless growth of this market as output gets affected by costs. Also, flexible packaging solutions act as a substitute for caps and covers, and with growing improvements in this kind of packaging, the market for caps and closures is adversely affected. Many companies are indulging in mergers and acquisitions in this sector to achieve a greater share of this fragmented market. In 2019, Berry Global Group acquired RPC group, which is a plastic product design and engineering company. AR Packaging Group acquired a subsidiary of Nampak Limited in 2019 to establish its existence in Africa.
Geographically, the European region is expected to hold a significant share in the production of caps and closures due to the presence of a large number of companies in that region.
The European region is anticipated to fuel the demand for caps and closures with burgeoning pharmaceutical companies due to rising health issues. The growing popularity of bottled water across the country can drive the demand for more caps to be manufactured. Asia-Pacific region is estimated to grow at a substantial rate throughout the forecast period, largely due to the rising incomes of the people, who in turn are demanding more packaged goods. The booming E-commerce industry in developing countries, such as India, is driving the sales of packaged products through the internet.
The pandemic had a negligible impact on the caps and closure market owing to the safety measures and rising awareness regarding consuming packaged food offsetting the supply chain issues. The concerns regarding the hygiene of the unpacked food and beverages propelled the market for caps and closures during a pandemic. Additionally, the guidelines from governments across the world pressed on 'food and beverages’ hygiene and safety aided the overall rise in the demand for packed food and beverages, further fueling the growth of caps and closure market amid the pandemic.
|Market Size Value in 2020||US$52.609 billion|
|Market Size Value in 2027||US$72.701 billion|
|Growth Rate||CAGR of 4.73% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Raw Material, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Amcor PLC, AptarGroup, Inc., Crown Holdings, Inc., Ball Corporation, Saint-Gobain, Silgan Holdings, Closure Systems International, Berry Global, Inc., BERICAP Holdings GmbH, SIG|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global caps and closures market?
A1. Caps And Closures Market was valued at US$52.609 billion in 2020.
Q2. What will be the global caps and closures market size by 2025?
A2. The global caps and closures market is expected to reach a market size of US$72.701 billion by 2027.
Q3. What are the growth prospects for the global caps and closures market?
A3. The caps and closures market is projected to grow at a CAGR of 4.73% over the forecast period.
Q4. Which region holds the largest share of the caps and closures market?
A4. Geographically, the European region is expected to hold a significant share of the caps and closures market due to the presence of a large number of companies in that region.
Q5. What factors are anticipated to drive the global caps and closure market growth?
A5. The caps and closure industry is growing due to increased reliance on packaged beverages.
1.1. Market Introduction
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Caps and Closures Market Analysis, by Type
6. Caps and Closures Market Analysis, by Raw Material
7. Caps and Closures Market Analysis, by Application
8. Caps and Closures Market Analysis, by Geography
8.2. North America
8.3. South America
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Amcor PLC
10.2. AptarGroup, Inc.
10.3. Crown Holdings, Inc.
10.4. Ball Corporation
10.6. Silgan Holdings
10.7. Closure Systems International
10.8. Berry Global, Inc.
10.9. BERICAP Holdings GmbH
Crown Holdings, Inc.
Closure Systems International
Berry Global, Inc.
BERICAP Holdings GmbH
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