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, 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 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 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 the 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, 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 cover, and with growing improvements in this kind of packaging, the market for caps and closures is adversely affected. Many of the companies are indulging in mergers and acquisitions in this sector to achieve 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, 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 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.
o Alcoholic Drinks
o Non-Alcoholic Drinks
o North America
o South America
o The Middle East and Africa
o Asia Pacific
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