Caps and Closures Market

Key Points Covered in Caps and Closures Market

• Market Estimates and Forecast 2015-2031
• Key Drivers and Restraints Impacting Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Caps and Closures Market and How to Navigate
• Recommendation on Key Winning Strategies

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2015-2020 Caps and Closures Market Outlook Compared to 2021-2031 Forecast

User friendly design, durability and high degree of customization are key factors fueling sales of caps and closures. With its precise closing, sealing properties and massive popularity among the end users, demand for caps and closures is anticipated to accelerate considerably over the forecast period.  FMI has projected the global caps and closures market to expand at a 5.6% CAGR 2021 to 2031, compared to 3.8% CAGR recorded between 2015 to 2020.

Caps and closures made from plastic, metal and other materials are closing systems used in bottle, jars, containers, cartons, and other packaging formats for sealing and packaging application. Rising production output from various end-use industries, coupled with design enhancement in caps and closures are driving its sales in the market.

Sales of caps and closures are largely driven marketing activities such as acquisitions, product maximization, partnerships, investments, and others. Furthermore, recyclability, production, and introduction of recyclable and sustainable caps and closures is creating lucrative opportunities for key manufacturers.

Manufacturers are focusing on circular packaging with incorporation of caps and closures, which are made up from post-consumer resin (PCR) and other recyclable materials. With this,  caps and closures manufacturers are upgrading their recycling initiatives, achieving sustainability targets and luring eco-conscious customers in the market. This is turn is propelling sales of caps and closures, and the trend is projected to continue over the forecast period.

How is Rising Demand for Child Resistant Caps and Closures Influencing Sales?

In recent years, there has been a significant rise in demand for child resistant packaging over safety concerns and regulations. Owing to increasing mandatory safety regulations for child resistant packaging, caps and closures manufacturers are producing child-resistant (CR) caps and closures on a large scale.

Given most importance to the child safety, caps and closure manufacturers are introducing certified child resistant caps and closures. For instance, in 2019, Berry Global, Inc. a leading packaging giant developed and launched new PalmSoft child resistant closure with value-added features such as easy to open, reclose, read, and understand.

Also, in August 2018, Comar LLC, one of the leading caps and closures manufacturers, introduced SecureCap® QuarterLoc caps with a more sustainable outlook. Such new launches and product innovations 

How Will the Caps and Closures Market Benefit from Convenience Packaging Trend?

Consumers prefer the convenience of bringing their favorite products with while travelling. As a result, demand for convenient packaging with innovative features such as headstand packs, flow-control, and easy disposal is on a rise.

Increasing usage of smaller bottles due to the current “on-the-go” trend in the beverage industry is also propelling demand for efficient and accessible caps and closures. Since a significant portion of the consumer base are preferring small bottles while travelling,  owing to their ease of handling, FMI projects high demand for caps and closers over the assessment period.

Furthermore, the adoption of collapsible bottles is gaining traction, which in turn is fostering sales of caps and closures, thereby boosting the overall market growth

What are the Repercussions of COVID-19 on the Global Caps and Closures Market?

The unprecedented COVID-19 pandemic has caused a downturn in sales of caps and closures, and the negative impacts of the pandemic have been felt in the packaging industry. Halt in production activities, complete lockdown across key regions, disrupted supply of raw material and several other factors has resulted in reduced  sales and production of caps and closures.

In addition, low demand for caps and closures from end use industries such as food & beverages, personal and homecare and others has caused bottlenecks in market growth for in the first quarter of FY 2020.

However, with expedited vaccine drives and resumption of industrial operations, recovery of the global cups and closures market is on cards. With rapid retrieval from the COVID-19 pandemic, sales of caps and closures will witness upswings in the forthcoming years.

Country-wise Insights

Why is Germany Considered a Lucrative Caps and Closures Market?

As per FMI’s analysis, Germany is anticipated to hold around 16% of the Europe caps and closures market in 2021, creating an incremental opportunity of US$ 2.2 Bn during the forecast period.

The Germany pharmaceutical sector is research-oriented and more focused on launching new medicinal drugs and extension of product pipelines. Strong financial investment in drug development and high-end production is boosting growth of the pharmaceutical sector in the country.

As per the European Federation of Pharmaceutical Industries and Associations (EFPIA), in 2019, the total pharmaceutical production in Germany was worth of US$ 40 Bn. Furthermore, in terms of research and development in the German pharmaceutical sector, the capital invested in R & D was around US$ 10 Bn in 2019.

These factors are indicative of lucrative growth opportunities for players operating in the German caps and closures market.

How Will Caps and Closures Sales Fare Across India?

By 2031, the Indian caps and closures market is anticipated to account for approximately 23% of the market share in the APAC region, finds FMI. Demand for caps and closures in India is majorly generated from the beverage sector as the consumption of variety of carbonated and non-carbonated drinks has witnessed a considerable surge.

Along with this, developments in the Indian dairy sector and high demand for dairy and milk products in India is propelling sales of caps and closures. As per the Food and Agriculture Organization of the United Nations (FAO), the total milk production in India in 2020 totaled 195 Mn tones, which is way more than other Asian countries such as China, Japan, Indonesia, and Thailand. Consistently rising milk production in India, along with high demand for dairy and milk products are bolstering sales of caps and closures in the country.

Why is Demand for Caps and Closures Rising in the U.S.?

Sales of caps and closures in the U.S. are projected to rise at a 3.5% CAGR over the forecast period. According to the study, the U.S. is estimated to hold nearly 75% of the total North American caps and closures market by the end of 2031.

The presence of prominent caps and closures manufacturers such as Closure Systems International, Inc, Silgan Holdings, Inc and Berry Global Group, Inc and their product development activities in the U.S. are expected to boost sales of caps and closures in the forthcoming years.

In addition to this, rising per capita expenditure on food and beverages in the U.S. is spurring demand for caps and closures. As per the Economic Research Service (U.S. Department of Agriculture), the total food spending by U.S. consumers, businesses, and government entities was around US$ 1.69 trillion in 2020.  Owing to these factors, sales of caps and closures are projected to rise at a healthy pace over the forecast period.

Category-wise Insights

Sales of Screw Closures to Continue Gaining Traction

Based on product type, the screw closures segment is estimated to hold nearly 51% of the total caps and closures market share. Benefits such as easy closing and opening mechanism,  and reasonable manufacturing and selling cost are propelling sales of the same.

Furthermore, unlike other caps and closures, screw closures are widely used in packaging formats such as bottler, jar, containers and cartons, which in turn is boosting their in the market.

Owing to its exceptional sealing characteristics and popularity among manufacturers, the segment is projected to offer incremental opportunity of US$ 36 Bn during the assessment period.

Plastic to Remain the Most-Preferred Material for Manufacturing Caps and Closures

Easy availability, light weight nature, low manufacturing cost, shelf appeal and outstanding packaging outlook are among some factors that are driving the adoption of plastic-based caps and closures.

With increasing demand from manufacturers and end users, the segment is anticipated to grow at a 5.7% CAGR, gaining 40 BPS during the forecast period.

Applications of Caps and Closures in the Food & Beverage Industry to Remain High, Followed by the Pharmaceutical Industry

Considering the end-use, food and beverage and pharmaceutical industries are spurring demand for efficient and innovative caps and closures across the globe.

Rising production output from these sectors and increasing per capita expenditure on food and medicinal drugs is creating huge demand for packaging solutions including caps and closures.

Collectively, these two industries will offer total incremental opportunity of US$ 49.2 Bn during the forecast period.  

Competitive Landscape

Key players operating in the global caps and closure market are focusing on capacity expansion and acquisition of local and regional players, to improve production capacity, increase regional footprint, and minimize operational costs.

Manufacturers are also providing customized caps and closure as per industry requirements, further maximizing its sales and profitability margin. Acquisitions, strategic collaborations and financial investment in research and development will remain crucial growth strategies for manufacturers over the assessment period. For instance:

• In June 2021, BERICAP Holding GmbH acquired Mala Verschluss-Systeme GmbH, thereby extending its product portfolio to include aluminium closures.
• In February 2020, Silgan Holdings Inc. acquired Cobra Plastics, Inc., with an aim to expand its global closure franchise. Cobra Plastics, Inc. manufactures and sells injection molded plastic closures for a wide variety of consumer products.
• In June 2020, Silgan Holdings Inc. completed the acquisition of Albea’s Global Dispensing Business, further strengthening its closures business.
• In March 2020, Berry Global, Inc. invested approximately US$ 30 million to increase production capacity in its North American location for ultra-high performance sport caps and closures.
• The same company, in July 2019, completed the acquisition of “RPC Group Plc”, one of the leading plastic manufacturing organizations, thus expanding Berry Global Group’s foothold in the packaging market.
• In August 2019, Aptar, Inc. entered a partnership with Nippon closures to provide innovative tethered beverage closure solutions

Scope of Report

Key Questions Answered in the Report

• What is the Current Valuation of Caps and Closures Market?

  The market valuation of caps and closures is expected to reach US$ 81.6 Bn in 2021.

• At What Rate did the Global Market for Caps and Closures Expand in the Last 5 Years?

  The global market for caps and closures exhibited steady growth at 3.8% CAGR in the last five years from 2015 to 2020.

• What is the Sales Outlook for Caps and Closures?

  The global caps and closures market will experience uptick in sales after the setback from COVID-19. New product development and increasing demand from end use industries will bolster sales of caps and closures in the market.

• Which Ongoing Trend is Gaining Traction in the Regional as well as the Global Market for Caps and Closures?

  Introduction of lightweight and child resistant caps and closures, coupled with customised solutions offered by key market players, are key trends driving the global caps and closures market.

• What is the Market Outlook for Caps and Closures in Europe?

  Europe is projected to hold 25% of the global caps and closures market share in 2021.

• What is the Cumulative Share of the Top Seven Companies in the Global Market for Caps and Closures?

  Top seven companies operating in the global caps and closures market are Crown Holdings Inc, BERICAP Holding GmbH, Guala Closures S.p.A, Closure Systems International, Inc., Berry Plastics Group, Inc, Amcor Plc, Silgan Plastic Closure Solutions These players are anticipated to hold nearly 05% to 10% share of the total caps and closures market share.

• At What Rate will the Global Market for Caps and Closures Grow in APAC?

  The global caps and closures market in APAC is projected to exhibit 6.9 % CAGR between 2021 and 2031.

• Which Countries are Exhibiting High Demand for Caps and Closures?

  China, India, Thailand, Germany, and France are among the leading markets for caps and closures, exhibiting consistently high demand.

• At What Rate will the Japan Caps and Closures Market Grow?

   The Japanese caps and closures market is expected to rise at 6.8% CAGR between 2021 and 2031.

Caps and Closures Market by Category

By Product:

• Screw Closures
• Snap Closures
• Push-Pull Closures
• Tethered Caps
• Others

By Production Process:

• Injection Molding
• Compression Molding
• Others (Blow Molding, and more)

By Material:

• Plastic
  • Polyethylene
    • HDPE
    • LDPE
  • Polypropylene
    • Homopolymer
    • Copolymer
    • Random
  • PCR
  • Bioplastics
  • Others (PET, PA, and more)
• Metal
• Aluminium
• Others

By End Use:

• Food & Beverage
• Consumer Goods
• Personal and Homecare
• Pharmaceuticals
• Others

By Region:

• North America
• Latin America
• Europe
• APAC
• MEA