The expanding need for various types of packed food goods, non-alcoholic and alcoholic beverages, and the growing necessity for easy-to-open and long-lasting packaging are the primary drivers driving caps and closures industry demand globally.
Caps and closures play a crucial function in packaging because they operate as a barrier to prevent product contamination and extend the shelf life of the goods. The demand for caps and closures will continue to rise in the coming years as a result of growing awareness of health and wellness, increasing disposable income, and expanding use of caps & closures in a variety of end-use industries, including pharmaceutical, personal care, home care, food & beverage, and automotive.
The caps and closures industry was worth USD 88,042.2 million in 2020, and it is predicted to increase at a CAGR of 5.0% between 2021 and 2030.
The broad end-use applications of caps and closure in industries including food & beverage, healthcare (pharmaceuticals), and personal care (cosmetics), among others, are predicted to propel the global market for them to stratospheric heights in the coming years. Another element that is anticipated to impact the market for caps and closures is the high pace of investments in R&D that produce various innovative products.
The following are the primary, supply-side-focused factors that are known to drive market growth and sustain the caps and closures industry:
- The requirement for safety and security to preserve the contents' quality and the need to increase consumer convenience by enabling more functionality
- The need to raise brand awareness of products and gain a competitive edge by disseminating information that reflects consumer preferences and values
- The incorporation of cap and closure solutions that serve as an enamoring
Market Insights
In terms of revenue, the plastic segment had the biggest market share of over 54% in 2020, and it is anticipated that it will continue to grow at the quickest CAGR during the projected period. Because plastic material is less biodegradable and produces CO2 during production, it raises environmental issues. As a result, recycling is becoming more popular in the production of caps and closures, with many businesses using recycled materials as raw materials to reduce their reliance on virgin plastic. For instance, 10 packaging closures made with 50% PCR polypropylene were introduced by Menshen and Borealis AG in September 2020. These are designed to hold cleaning supplies for the home and laundry.
In contrast, metal is more resilient and long-lasting than plastic and is thus gaining popularity in the market. Glass bottles used for beverages, food products in metal cans, and medicinal bottles all have metal closures.
Other materials are becoming more popular because they offer strong sealing solutions and aesthetic appeal to the packaging.
The Covid Impact:
The COVID-19 outbreak has had a significant effect on several economic sectors. The regulatory agencies' implementation of strict lockdowns in many places also hurt the caps and closures sector. Caps and closures are generally used in domestic items, cosmetics, food, beverages, and medications. They are the last component used in product packaging and are crucial to preserving its dependability.
Due to concerns about the virus spreading, both offline and online food chains experienced a drop in growth at this time. The market demand is being driven by the availability of safe and hygienic products, nonetheless. The gradual opening of the lockdowns also offers a variety of potential opportunities for the caps and closures industry.
