MARKET OVERVIEW- GLOBAL PLASTIC CAPS AND CLOSURES MARKET
Caps and closures are used to protect the end of a shaft, tube, pipe, bottle, screw, bar, or other item during shipping, storage, masking, or other applications. A closure is a device that is used to seal or close a container like a bottle, jug, jar, tube, or can. Plastic caps and closures keep the container closed and the contents contained for the specified shelf life until the time of opening, as well as providing a barrier to dirt, oxygen, moisture, etc. In a variety of industries, caps and closures are used to keep products fresh, extend their shelf life, and maintain product quality. They are an important part of the packaging of stand-up pouches, bottles, cans, and tubes.
The plastic caps and closures help to keep the contents from spilling out, reducing the amount of product degradation and the amount of goods that leak from the bottle. They have numerous applications in food and beverages, pharmaceuticals and personal care, cosmetics and toiletries, agrochemicals, chemicals, lubricating oil, and many more. The home care and cosmetics industries' growing use of caps and closures is anticipated to drive the growth of the market during the forecast period.
MARKET DRIVERS
Favourable social-economic and demographic factors such as rapid urbanization, a growing population, and increasing demand for food and beverages have driven the plastic caps and closure market. The growth of the global plastic caps and closure market is primarily driven by a rise in bottled water demand from customers worldwide. Plastic caps and closures are used to seal water bottles to avoid spills, simplify transportation, and improve shelf life. The growing awareness of contamination and safety issues is driving up demand for plastic caps and closures. According to the International Bottled Water Association (IBWA), bottled water companies will increase their production capacities to meet the demand for bottled water. These increases are the result of advancing technological developments in packing solutions. It involves expanding the capacity for bottling, acquiring additional production and packaging materials, and consulting retailers to ascertain the demand. This is anticipated to persist during the projection period, driving up demand for plastic caps and the market for closures. In addition, due to the rising market for consumer goods and packaged foods, the need for new packaging materials that can protect from rough environments without altering the quality of the product is increasing. This will further fuel the market's expansion over the foreseen period.
MARKET OPPORTUNITY
The market is expected to have new opportunities with technological advancements and ongoing R&D activities to develop quality plastic caps and closures products. This is expected to provide ample new growth opportunities in the market during the forecast period. Due to their properties, such as helping to extend the shelf life of products, protecting them from dirt and moisture, and keeping the oxygen content of the packed product balanced. Plastic caps provide the ideal economic solution to food and beverage storage. The caps and closures market offer numerous opportunities for the food and beverage market over the forecast period. In addition, end-users of plastic caps, such as pharmaceuticals, cosmetics, and toiletries, offer vast opportunities. Thermoplastics and thermosets are the plastics that are used to make plastic caps and closures. Plastic caps and closures are ideal for packaging a variety of carbonated and non-carbonated beverages, as well as industrial goods, because they are recyclable and lightweight. Thus, rising investment in research and development by the companies is anticipated to propel several companies to adopt innovative technologies for plastic caps and closures production. It is expected to provide new growth opportunities in the upcoming years.
MARKET RESTRAINTS
Excessive initial investment costs and stringent government regulation of the use of plastics are the primary restrains to market expansion. The major trend followed in the plastic caps and closure market is the use of bio-based plastic for production of caps and closures due to increasing environment concern among the consumers and easy availability of substitutes. Plastic bottle caps are considered food by marine mammals, birds, and fish, which can result in ingestion and potentially fatal consequences. Polypropylene material is used for the production of plastic caps and closures, but it has limited use in high temperatures as it suffers from chain degradation, which can lead to oxidation. This results in cracks appearing in the polypropylene.
MARKET GROWTH CHALLENGES
A key challenge that may affect the growth of the market is the rise in raw material prices. However, for manufacturing, this sector is entirely dependent on suppliers of raw materials. The prices of raw materials like PP and PE fluctuate significantly in the market. It is difficult for manufacturers to maintain constant output because the cost of production is dependent on this raw material. This is a major factor that is expected to pose key challenges for the market growth over the forecast period. The shortage in the raw material may cause the manufacturers to face losses leading to a production delay. These are major challenges for the plastic caps and closures market growth over the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of global plastic caps and closures market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for plastic caps and closures in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET SEGMENTAL OVERVIEW
The global plastic caps and closures market comprises of different market segments like, type, size in diameter, raw materials, end-users and geography.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET BY TYPE
By type, the global plastic caps and closures market includes key segments like
On the basis of type, the global plastic caps and closures market includes key segments like caps and closures. The cap segment dominates the plastic caps and closures market over the foreseen period. It provides a barrier to dirt, oxygen, moisture, etc. and control the permeation, keep the container properly closed and the contents safe for the specified shelf life until the time of opening, and provide scope for reclosing or reusing the container. Due to their characteristics like light weight, less cost, heat resistance, flexibility and stability provides numerous applications in various industries.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET BY SIZE IN DIAMETER
By size in diameter, the global plastic caps and closures market includes key segments like
- Less than 20 mm
- 20-50 mm
- Above 50 mm
The global plastic caps and closures market is divided into three categories based on diameter: less than 20 mm, 20-50 mm, and greater than 50 mm. Less than 20 mm plastic caps and closures segment holds the major shares over the forecast period. This is due to increasing use of the personal and beauty care products. In addition, it has numerous applications in healthcare, homecare, personal care, and industrial purposes. 20–50 mm plastic caps and closures are a light weight, crack resistant, and flexible design with many applications, including drink packaging, non-food packaging, and cosmetic packaging. In addition, they are ideally suited for non-carbonated beverage applications such as juices, sport drinks, teas, and liquid dairy products. Above-50 mm plastic caps and closures are widely used in the automotive, beverage, home care, chemical, and agrochemical markets. They provide high adhesion, are corrosion-resistant, have enhanced strength, are resistant to cracking under pressure, and have good temperature resistance.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET BY RAW MATERIAL
By raw material, the global plastic caps and closures market includes key segments like
- HDPE (High Density Polyethylene)
- LDPE (Low Density Polyethylene)
- PP (Polypropylene)
- Others
On the basis of raw material, the global plastic caps and closures market finds key segments such as HDPE (High Density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), and others. The polypropylene segment dominated the plastic caps and closures market owing to its low manufacturing cost, high strength-to-density ratio, and high temperature resistance. In addition, its cost-effectiveness, temperature resistance, UV resistance, non-leaching, and excellent chemical resistance make it ideal for various applications. Polypropylene Caps are known for good impact strength, durability, cost-effectiveness, thermal resistance, and pliability. Polypropylene Caps are hard, rugged, and durable and commonly used for bottle caps of all types. While the LDPE segment is expected to register the highest CAGR during the forecast period due to its good chemical resistance and electrical properties, toughness, and high flexibility and corrosion resistance.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET BY END USERS
The global plastic caps and closures market finds key end-users like
- Food & Beverages
- Pharmaceuticals & Personal Care
- Cosmetics and Toiletries
- Agrochemicals
- Chemicals
- Lubricating Oil
- Others
On the basis of end users, the global plastic caps and closures market was bifurcated into food & beverages, pharmaceuticals & personal care, cosmetics & toiletries, agrochemicals, chemicals, lubricating oil, and others. The food and beverage market are anticipated to account for the largest market share and is expected to maintain its dominance throughout the forecast period. The changing eating habits and the quickening pace of life have driven the demand for packaged food, which is expected to significantly impact the plastic caps and closures in the food and beverage industry. Moreover, the benefits offered by food packaging, such as an extended and stable shelf life, high barrier properties, and safety, have boosted the industry’s growth. The plastic caps and closures help to keep the contents from spilling out, reducing the amount of product degradation and the amount of goods that leak from the bottle. In the pharmaceutical and personal care industries, plastic caps and closures are frequently used to protect products from moisture, air, particulate matter, and microorganisms.
GLOBAL PLASTIC CAPS AND CLOSURES MARKET BY COUNTRY
The global plastic caps and closures is studied for the following countries
- North America
- Asia Pacific
- Europe
- RoW
The Asia Pacific is projected to lead the market during the forecast period. This is due to the increasing food and beverage industries in the developing and developed countries, including China and India, which account for the largest share of the rigid plastic packaging market in the Asia Pacific region. The region's market is also being driven by other factors, including its large population and its demand in different industries such as pharmaceuticals, food and beverages, consumer goods, and economic development. Furthermore, plastic caps and closures serve a range of industries in this region, including food and beverages, pharmaceuticals, household goods, and cosmetic products. These are the major factors that are responsible for market growth in the Asia-Pacific region. Furthermore, rising demand for deodorants, skin care, hair care, makeup, fragrances, antiperspirants, hygiene, and mouth care products in various applications is projected to grow the market. North America is expected to witness significant growth over the forecast period owing to the increasing demand for healthy beverages and the increasing development of new industries and economic development in this region.
COVID-19 IMPACT ANALYSIS ON GLOBAL PLASTIC CAPS AND CLOSURES MARKET
The COVID-19 pandemic has adversely affected almost all sectors. The market's expansion has been hampered by worker restrictions on movement, a drop-in consumer demand, and the closing of production facilities. The supply chain was hindered by the pandemic because logistics activities were delayed. Demand, supply, price, vendor adoption, and sustainable outcomes were all affected by this COVID-19 outbreak.
However, the growth has been high after the market opened after COVID-19. It is expected that there would be considerable growth in the sector, owing to the increasing demand for hand sanitizers and hand washing products that significantly increased during the pandemic to prevent COVID-19, which helped the plastic caps and closures industry. In addition, increasing opportunities from the end-user industries, including beverage, food, and pharmaceuticals, propel the market growth over the foreseen period.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of plastic caps and closures market is primarily focused on expanding the global growth of plastic caps and closures industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in plastic caps and closures sector has led the growing demand for the market. Besides, the market offers range of products in different application to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Amcor Limited (Switzerland)
- Silgan Holdings Inc (United States)
- WestRock Company (United States)
- Weener Plastics Group B.V. (Netherland)
- UNITED CAPS (France)
- TriMas Corporation (United States)
- Saint-Gobain (France)
- BERICAP (Germany)
- Closure Systems International (United States)
- Caprice Resources Limited (Australia)
- Plastic Closures Limited (United Kingdom)
- Berry Global, Inc (United States)
- O Berk Company (new Jersey)
- Crown Holdings Inc. (United States)
- AptarGroup Inc. (France)
- Pano Cap (Canada)
- Caps and Closure Private Limited Austrial (Australia)
- Hicap Closures Co. Ltd (China)
RECENT DEVELOPMENT:
March 2023: Berry Global launched Berry Digi-Cap digital child-resistant closure to improve medication adherence. It is ideal for research, academic studies, clinical trials, and drug development.
June 2021: Closure Systems International (CSI) introduced the 38mm D-KF foil-lined HDPE closure (38D-KF). It is commercially available for applications in non-carbonated cold- and ambient-filled beverages and liquid dairy markets.
