Caps and Closures Market Outlook, 2031
The global caps and closures market size was valued at $46,151.7 million in 2020, and is projected to reach $81,330.4 million by 2031, registering a CAGR of 4.9% from 2022 to 2031.
Caps and closures serve the main purpose of keeping the container sealed and the contents safe for the designated shelf life. It also works as a barrier against dirt, moisture, and oxygen, and it keeps the items from being opened abruptly. Caps and closures are primarily utilized in the packaging industry to protect commodities and increase shelf life. Plastic, metal, rubber, and wood are some of the materials used in the caps and closures sector to provide proper packaging.
Key Takeaways
By product type, the screw closures segment dominated the caps and closures market in 2023.
By raw material, the plastic segment dominated the market in 2023.
By application, the dairy product segment dominated the market in 2023.
By region, Asia-Pacific dominated the market in terms of revenue in 2023. However, North America is anticipated to grow at the highest CAGR during the forecast period.
Market Dynamics
Plastic is one of the major driving factors of the caps and closures for food & beverages market. The demand for plastic caps and closures for food & beverages is increasing as they are an important part of packaging for containers such as canisters, bottles, cans, beverage carton, and tubes. Plastic is gradually replacing the traditional raw materials used in manufacturing of caps and closures such as tinplate and aluminum. With the growing competition and adoption of high-tech enlargements, plastics caps, and closures have become more important in the caps and closures market. The increase in popularity of plastic caps and closures for aseptic cartons, stand-up pouches, and gable top drive the plastic caps and closures for food and beverages market.
The governments of all countries heavily promote go-green projects and eco-friendly concepts. The plastics and other chemicals widely used in the process of manufacturing caps and closures affect the environment. An increase in the requirement of eco-friendly caps and closures which use recycled and natural ingredients such as wood and paper board is expected in the future. The use of eco-friendly material such as paper board, wood, bamboo, post consumer resin (PCR), post industrial resin (PIR) , and polymerized lactic acid(PLA) reduces wastage, which will provide market opportunities for growth.
In terms of value, Asia-Pacific and LAMEA collectively contributed approximately half share of the global market in 2020. Developing countries, such as Brazil, India, and China display a huge growth potential for this market on account of high manufacturing of food & beverage products in these countries to cater the caps and closures market demand.
Segments Overview
The caps and closures market is segmented on the basis of product type, raw material, application, and region. On the basis of product type, the market is segmented into easy-open can end, metal lug closures, peel-off foils, screw closures, metal crowns, corks, and others. By raw material, the market is segmented into plastic, metal, wood, and others. On the basis of application, the industry are broadly classified into beer, wine, bottled water, carbonated soft drinks, dairy product, condiments & sauces, and others. Region-wise, the caps and closures market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, Russia, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Taiwan and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
By Product Type
On the basis of product type, the screw closure segment had gained a major share in the global market in 2020 and is expected to sustain its market share during the caps and closures market forecast period. The screw closure segment was valued at $10,638.9 million in 2020 and is expected to reach $14,960.5 million by 2031, with a CAGR of 2.7%. The key factors for the caps and closures market growth are packaging foods and beverages and emerging lifestyle.
By Product Type
Easy-Open Can End segment would exhibit the highest CAGR of 6.9% during 2022-2031, owing to the increased demand of food and beverages cans with open can end in consumers for its easy accessibility
By Raw Material
On the basis of raw material, the plastic segment was valued at $18,441.9 million in 2020 and is expected to reach $33,039.8 million by 2031, with a CAGR of 5.1%. Plastic is the most dependable material for the production of caps and closures. Plastic is more durable and less expensive than other materials, hence it is the recommended material for the corporation to employ in the production of caps and closures.
By Raw Material
Plastic and Wood segment would exhibit the highest CAGR of 5.1% during 2022-2031, owing to the increased usage in packaging for foods and beverages.
By Application
On the basis of application, the dairy product segment was valued at $8,662.3 million in 2020 and is projected to reach $16,965.1 million by 2031, registering a CAGR of 5.9%. Factors such as increase in consumption of dairy products and the growing popularity of different types of dairy products in the market have boosted the need for caps and closures for packaging.
By Application
Dairy Product segment would exhibit the highest CAGR of 5.9% during 2022-2031, owing to the increased production of Dairy Products the developing region.
By Religion
Region wise, Asia-Pacific dominated the caps and closures market in 2020 and is expected to be dominant during the forecast period. The key driving factors of the market include a higher participation rate of youngsters in purchase of convenience packaged foods and beverages across the U.S., Canada, and Mexico. Moreover, the China and India has one of the largest countries with large consumer bases in the globe, which further boosts the demand for caps and closures in the packaging industries.
By Region
North America would exhibit the highest CAGR of 6.1% during 2022-2031, owing to the increase in westernization and adaption of innovative caps and closures products among food and beverage manufacturers for packaging.
Competition Analysis
According to the global caps and closures market analysis, the players operating have adopted various developmental strategies to expand their caps and closures market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Allstates Rubber & Tool Corp, Amcor Plc, AptarGroup, Inc., Ball Corporation, BERICAP GmbH & Co. KG, Berry Global, Inc, Crown Holdings, Inc., GCL Holdings S.C.A., JELINEK CORK GROUP, and M.A. SILVA USA, LLC.
Some Examples of Acquisition in The Market
In June 2021, BERICAP, one of the leading global manufacturers of plastic closures, has taken over Mala Verschluss-Systeme GmbH, thereby extending its product portfolio to include aluminum closures.
In June 2021, Silgan Holdings completed the acquisition of Albea's dispensing business, a packaging company based in France. This business provides pumps, sprayers, and foam dispensing solutions to leading consumer goods companies in the personal care and beauty industries. It operates 10 manufacturing facilities across North America, Europe, South America, and Asia. The acquisition is anticipated to slightly enhance Silgan Holdings' earnings for 2020.
Some Examples of Partnership and Business Expansion in The Market
In 2022, Berry Global Group, Inc. (NYSE: BERY) announced to expand its foodservice packaging manufacturing operations in North America as part of its long-term strategic growth commitments.
Key benefits for stakeholders
The study provides an in-depth analysis of the market caps and closures trends to showcase the forthcoming investment pockets.
Information regarding key drivers, restraints, and opportunities along with their impact analysis on the market is provided in the report.
Porter's five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
The quantitative analysis of the market is provided to determine the market potential.
In-depth analysis and the market size and segmentation assist to determine the prevailing caps and closures market opportunities.
The major countries in each region are mapped according to their revenue contribution to the market.
The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the caps and closures industry.
Caps and Closures Market Report Highlights
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Analyst Review
The caps and closures for food and beverages market hold a substantial scope for global growth. The market is in its growth stage; however, its contribution to the global market would increase significantly within the next six years. The unstable price of raw material is a major limitation for the caps and closures market for food and beverages. However, due to increase in consumption of packaged foods and beverages, this market is expected to increase in subsequent years. Moreover, ready-to-eat foods and beverages are gaining popularity in the present and are expected to have a huge demand potential in the coming future. The market of caps and closures for foods and beverages is expected to register an appreciable growth in the Asia-Pacific and in emerging nations such as India and China.
CXOs further add that aluminum is the main constituent for making metal closures for beverages containers. Last year, there was a market shortage of aluminum, which will have no effect on the current price of acquiring aluminum but will cause the price of aluminum to increase in the future. Surge in the price of aluminum will force beverage manufacturing companies to increase the cost of their products to avoid incurring a loss from sales.
The Caps and Closures market will expand by the CAGR of 4.9% from 2022 to 2031.
The Caps and Closure market is estimated to reach $81,330.4 million by 2031.
The top impacting factors of Caps and Closures market growth are introduction of eco-friendly caps and closures and increasing demand from the packaging industry.
The leading players in the Caps and Closures market include Amcor Plc, Berry Global, Inc., Aptar Group, Inc., and Crown Holdings, Inc.
The segments in Caps and Closures market are product type, raw material, and application.
The key growth strategies of Cap and Closures market players are partnership, acquisition, and buisness expansion.
By Product Type, screw closures segment would exhibit the highest share from 2022-2031.
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