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The caps and closures market size is forecast to increase by USD 8.48 billion at a CAGR of 5.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand from various industries, including pharmaceuticals, food and beverages, cosmetics, and household goods. In the pharmaceutical sector, the need for primary packaging that ensures product integrity is driving the adoption of advanced caps and closures made from polymer materials, such as polypropylene and polyethylene. The food and beverage industry is also witnessing a rise in demand for caps and closures, particularly those made from metallic materials, such as aluminum and steel, due to their ability to maintain product freshness and prevent contamination. New product launches are another growth factor in the market.
However, the market is also facing challenges from fluctuating raw material prices, which can impact the profitability of caps and closure manufacturers. Overall, the market is expected to continue its growth trajectory, driven by the increasing demand from various end-use industries and the development of innovative and advanced caps and closure solutions.
The market encompasses a diverse range of industries, including pharmaceuticals, food and beverages, cosmetics, household goods, and primary packaging. These components play a crucial role in ensuring product integrity and maintaining consumer safety. In the pharmaceutical sector, caps and closures are essential for preserving the efficacy and safety of medications. Polymer materials, such as polypropylene and polyethylene, are commonly used due to their cost-effectiveness and compatibility with various drug formulations. Metallic materials, including aluminum and steel, are also employed for certain applications due to their superior barrier properties. The food and beverage industry relies heavily on caps and closures to maintain product quality and food safety. Screw caps, flip-tops, dispensing caps, and tamper-evident closures are popular choices for various applications.
Furthermore, food safety regulations mandate the use of eco-friendly materials and child-resistant closures to minimize potential health risks. In the cosmetics sector, caps and closures contribute to the overall aesthetics and functionality of cosmetic packaging. The use of 3D printing and injection molding technologies enables the production of customized and intricate designs. Household goods, including personal care and household products, also benefit from the use of caps and closures. These components ensure product containment, maintain product freshness and provide tamper evidence. Primary packaging, which includes the immediate container for a product, is a critical aspect of the market. The use of innovative materials and manufacturing techniques, such as biodegradable polymers and advanced injection molding processes, is driving growth in this sector. The food and beverage industry includes packaged foods, food products, alcoholic beverages, and non-alcoholic beverages. Caps and closures play a vital role in preserving the quality and safety of these products. In the case of dietary supplements, multivitamins, specialty supplements, sports nutrition, and other health-related products, caps and closures help maintain product efficacy and ensure child safety.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The food and beverage segment is estimated to witness significant growth during the forecast period. Caps and closures play a crucial role in the primary packaging of various industries, including pharmaceuticals, food and beverages, cosmetics, and household goods. In the food and beverage sector, caps and closures are extensively used in carbonated soft drinks, liquid packaged foods, ready-to-eat packaged foods, packaged water, non-carbonated beverages, and other beverages. The demand for these packaging solutions is increasing due to the growing preference for health drinks, sports and energy drinks, juices, and alcoholic beverages. The choice of caps and closures significantly influences consumers' purchasing decisions and product differentiation. Consumers are increasingly drawn to packaging that is easily moldable and printable, leading to the emergence of innovative packaging solutions.
Furthermore, the food and beverage segment's growth is driven by several factors, including the need for product integrity, consumer preferences, and the availability of various materials, such as polymer materials like polypropylene and polyethylene, and metallic materials like aluminum and steel. Polymer materials offer advantages such as lightweight, cost-effective, and easy-to-process properties, making them popular choices for caps and closures. Metallic materials, on the other hand, provide excellent barrier properties, making them suitable for packaging applications where product preservation is crucial. The market is expected to continue growing due to the increasing demand for convenient and sustainable packaging solutions.
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The food and beverage segment was valued at USD 14.60 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In recent years, the Asia Pacific region, specifically countries like India, China, Japan, Singapore, and Australia, have experienced significant growth in the manufacturing sector, particularly in the food and beverage industry. This trend is driven by changing consumer preferences and urbanization. As more individuals adopt healthier lifestyles, there has been a noticeable increase in the demand for premium bottled water and other packaged food and beverage alternatives. To cater to this demand, manufacturers are turning to innovative packaging solutions, such as pouches and blister packages, which offer both enhanced aesthetic appeal and convenience. Moreover, the emergence of high-net-worth individuals in these markets has further fueled the growth of the packaged food and beverage industry. The trend towards on-the-go consumption has also contributed to the demand for packaged food and beverages.
However, this growth comes with challenges, including packaging waste and the carbon footprint of plastic, metal, glass, rubber and elastomers, and wood. To address these concerns, there is a growing emphasis on recycling and sustainable packaging solutions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for caps and closure from pharmaceutical industry is the key driver of the market. The market is witnessing significant growth due to the increasing demand for beverage packaging and packaged food. In particular, the market for bottled beverages is experiencing a rise in demand, leading to an increased need for effective and safe closures such as screw caps, flip- tops, and dispensing caps. Moreover, tamper-evident closures are gaining popularity in the food industry to ensure food safety. Eco-friendly materials, such as paperboard, are being increasingly used in the production of caps and closures to cater to the growing demand for sustainable packaging solutions. The use of advanced technologies like 3D printing and injection molding in the manufacturing process is also contributing to the growth of the market.
Furthermore, OTC drug manufacturers are introducing new products to cater to consumer needs, leading to an increase in sales. This trend is expected to continue, driving the demand for caps and closures in the pharmaceutical industry. Child-resistant closures are also gaining popularity to ensure safety, especially for medicines and health supplements. In conclusion, the market is poised for growth due to the increasing demand for beverage packaging, packaged food, and pharmaceuticals. The use of eco-friendly materials and advanced manufacturing technologies is also fueling the market's growth. The trend towards sustainable packaging and safety concerns is expected to continue, making the market an attractive investment opportunity.
New product launches is the upcoming trend in the market. companies in the market are responding to consumer demands by introducing innovative new products. This strategic move expands the offerings of these companies and provides a competitive edge. This closure reduces material usage while maintaining optimal performance and consumer convenience. In the healthcare sector, child-resistant closures continue to gain popularity due to their safety benefits.
Meanwhile, beverage applications, including functional beverages such as energy drinks and sports drinks, are driving demand for aerosol closures, screw closures, corks, and dispensing caps. These closures ensure the product's integrity and provide a secure seal, enhancing consumer satisfaction. As the market continues to grow, it is essential for companies to stay competitive by offering innovative solutions that cater to the unique requirements of their customers.
Fluctuating raw material prices of caps and closures is a key challenge affecting the market growth. Caps and closures play a significant role in various industries, including Personal Care, Household Products, Packaged Foods, and Consumer Goods. The volatility of global crude oil prices can significantly impact the pricing and production costs of caps and closures. This geopolitical issue, along with the subsequent ban on Russian oil imports by the US and the UK, has adversely affected the oil and gas industry, ultimately influencing the production and pricing of caps and closures.
In addition to these external factors, the demand for caps and closures with anti-counterfeiting features, such as airtight seals, is increasing in various end-use industries, including Food products, Beverages, Dietary supplements, Multivitamins, Specialty supplements, and Sports nutrition. The production of these components relies heavily on the availability and cost of raw materials, primarily plastics, which are derived from crude oil.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor Plc - The company offers a wide range of caps and closures such as STELVIN aluminium screwcaps, capsules and plastic closures.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Caps and closures play a crucial role in the primary packaging of various industries, including pharmaceuticals, food and beverages, cosmetics, and household goods. In the pharmaceutical sector, these components ensure product integrity and protection from external factors. In the food and beverages industry, caps and closures maintain an airtight seal, preserving the freshness and quality of products. Polymer materials such as polypropylene and polyethylene, as well as metallic materials like aluminum and steel, are commonly used for caps and closures due to their durability and resistance to environmental conditions. The food and beverage industry utilizes various types of caps and closures, including screw caps, flip-tops, and tamper-evident closures, for food safety and consumer convenience.
Moreover, online food chains and offline food deliveries catering to on-the-go consumers have increased the demand for packaged foods and bottled beverages. This trend has led to the growth of the market in the food and beverage sector. Premium bottled water and soft drinks and other beverages targeting high-net-worth individuals often use tamper-evident caps and eco-friendly materials to enhance their brand image. The cosmetics and personal care industry relies on caps and closures for their packaging needs, focusing on child-resistant closures and anti-counterfeiting features for safety and brand protection. Household goods and consumer goods, including dietary supplements, multivitamins, and specialty supplements, also utilize various types of caps and closures to ensure product freshness and consumer convenience.
Furthermore, sustainability and eco-friendly materials are becoming increasingly important in the market. Recycling and reducing packaging waste, as well as minimizing the carbon footprint, are key considerations for manufacturers. Materials like paperboard, wood, and biodegradable plastics are gaining popularity as alternatives to traditional plastic, metal, and glass caps and closures. Innovations in caps and closures manufacturing technologies, such as 3D printing, injection molding, and advanced materials, continue to drive growth in the market. Functional beverages, including energy drinks and sports drinks, often use specialized caps and closures, such as aerosol closures and crown closures, to cater to their unique packaging requirements.
Market Scope |
|
Report Coverage |
Details |
Page number |
137 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.5% |
Market growth 2024-2028 |
USD 8.47 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.2 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Germany, Russia, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALCOPACK Group, Amcor Plc, AptarGroup Inc., BERICAP Holding GmbH, Berry Global Inc., Blackhawk Molding Co. Inc., Caps and Closures Pty Ltd., Coral Products Plc, Crown Holdings Inc., Guala Closures SpA, HERTI JSC, Oricon Enterprises Ltd., Pact Group Holdings Ltd., Pelliconi and C SpA, Phoenix Closures Inc., Plastic Closures Ltd., Premier Vinyl Solutions Ltd., Reynolds Group Ltd., Silgan Holdings Inc., and United States Plastic Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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