The global caps and closures market is projected to grow at a CAGR of 4.60% to reach US$66.612 billion by 2025, from US$50.855 billion in 2019. 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 to 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 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 moulded 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 the 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 to their covers to transfer relevant information to consumers.
The global caps and closure industry is growing due to increased reliance on packaged beverages.
Changing lifestyles of people is 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 caps and closures market. Caps and closures of alcoholic drinks is 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 up of wood and paper board are expected to bring a 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 aluminium, 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 countries 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.
|Market size value in 2019||US$50.855 billion|
|Market size value in 2025||US$66.612 billion|
|Growth Rate||CAGR of 4.60% from 2019 to 2025|
|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., WestRock Company, Ball Corporation, Saint-Gobain, Silgan Holdings, Closure Systems International, Berry Global, Inc., BERICAP Holdings GmbH|
|Customization scope||Free report customization with purchase|
o Alcoholic Drinks
o Non-Alcoholic Drinks
o North America
o South America
o The Middle East and Africa
o Asia Pacific
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$50.855 billion in the year 2019.
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$66.612 billion by 2025.
Q3. What are the growth prospects for the global caps and closures market?
A3. The caps and closures market is expected to grow at a CAGR of 4.60% over the six years.
Q4. How is the global caps and closures market segmented?
A4. The global caps and closures market has been segmented by type, raw material, application, and geography.
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.
Crown Holdings, Inc.
Closure Systems International
Berry Global, Inc.
BERICAP Holdings GmbH
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