The rising demand for bottled packaging from the various end use industry, especially from the food and beverage industry is expected to drive the demand for caps and closures. The growth of the food and beverages industry is a major driver that is expected to drive the growth of the caps and closures market globally.
According to the Plastics Industry Association, plastic bottles accounted for 41.2% of all beverage packaging units in 2016, which in turn is expected to drive the demand for caps and closures globally due to their excellent resistance against external factors.
According to Coherent Market Insights, a global market intelligence and consulting organisation, the food and beverages segment accounted for 41.9% of the total market value for caps and closures in 2017 and is expected to continue its dominance throughout the forecast period.
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.
For instance, due to increasing plastic waste the Chinese government introduced the excessive packaging regulations, in 2010, which included beverage packaging, cosmetic packaging, and certain food and confectionary packaging. Maharashtra banned the use of packaged water bottles in government offices in 2018 in an effort to reduce the use of plastics.
According to the Plastics Industry Association Americans used about 50 billion plastic water bottles in 2016. However, the US’s recycling rate for plastic was only 23%, which hampers the environment resulting in the need for the reduction of the use of plastic bottles and plastic caps .These factors in turn are expected to affect the caps and closures market globally.
Some of the major players in the caps and closures market are Guala Closures Group (Italy), Amcor (Australia), RPC Group PLC (UK), Crown Holdings (US), Rexam (UK), Silgan (US), AptarGroup (US), and Berry Plastics (US).
Asia Pacific is the largest and estimated to be the fastest growing market due to increasing demand in end-use industries such as alcoholic beverages, beer, food and soft beverages, and pharmaceuticals due to their low production cost and ability to keep the beverages safe.
North America and Europe are also expected to grow due to increasing rate of beer consumption in the region, during the forecast period.
Also, it is expected that the consumption of liquor will increase in forecast period. Pharmaceutical industry in these regions drives the demand for highly chemical resistance caps and closures for various uses within the industry.
High disposable incomes of the Middle East population drive consumerism. The consumption of electronics and consumer goods are increasing rapidly, driving the market growth of caps and closures. Decline in markets of Syria and Iran have been compensated by high growth rate in the GCC countries.
The Latin America market is witnessing robust growth in the caps and closures market, which is mainly driven by the increase in per capita income of middle class population. Significant reduction in cost, excellent performance, lightweight, and low operational costs are some of the benefits offered by caps and closures, which fuel the market demand.
According to Coherent Market Insights, the global packaging market was valued at USD 801 billion in 2017 growing at a CAGR of 2.11% during the forecast period and is expected to reach due to the increasing demand for packaging solutions from the various end use industries especially the food and beverages market.
The global plastic bottles market was valued at 140.1 billion in 2016 and is expected to be valued at 176.9 billion by 2025. The growing demand for plastic packaging solutions especially for beverages is expected to drive the demand for plastic bottles. This in turn is expected to spur the need for caps and closures which help protect the product from external factors like dust, heat amongst others.
(Details on the report, ‘Caps and Closures Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017-25’ is available at the Coherent Market Insights website.)