An Incisive, In-depth Analysis on the Plastic Caps And Closures Market
This study offers a comprehensive, 360 degree analysis on the Plastic Caps And Closures market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Plastic Caps And Closures market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Declining global demand for glass bottles and containers, owing to its high cost and fragile properties is the key factor projected to favor the growth of plastic-made products including plastic caps and closures. Manufacturers in the plastic caps and closures market are increasingly preferring PET bottles over glass packaging to further ensure ease of handling and safe transportation. As per a recent market intelligence outlook by Future Market Insights, the global plastic caps and closures market is slated to reach a valuation of nearly US$ 54.7 Billion by 2027, expanding at a moderate CAGR of 4.8 percent.
In A Highly Fragmented Global Plastic Caps and Closures Market, Regional Players Outplay Global Companies
With the shifting competitive landscape in global plastic caps and closures market, owing to low running costs, well-established networks, and the ability to understand local trends and demands, the local and regional players in the global plastic caps and closures market have come the forefront—currently holding nearly 82 percent of the total market share in the global plastic caps and closures market. As per FMI’s study on global plastic caps and closures market, key factors contributing to the dominant position of regional players include low costs pertaining to production, transportation, and logistics.
Stringency in Standards Influencing Demand for Plastic Caps and Closures
In a bid to reduce the impact of color and additives in plastic caps and closures, with high demand for dimensional accuracy and process safety, packaging regulations are projected to influence the demand for quality and seamless products, specifically in food, cosmetics and pharmaceutical industries. Critical parameters such as homogenous dyeing and exact coloring, high dimensional stability, and careful selection of raw materials have been covered under various regulation, globally. Although stringent regulations result in quality products, it is projected to be a key factor creating an upward pricing pressure, thereby, restraining the growth of plastic caps and closures market. The EU has enacted the Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) to protect consumers and environment from the harmful impact of chemicals. The EU has also outlined guidelines in Food Contact Material Regulations that covers the safety of all materials that come in contact with food. Similarly, The Federal Food, Drug and Cosmetic Act includes food contact substances (FCS), or any substance intended to be used as a material for manufacturing, processing, packing, packaging, transporting or holding food.
Global Plastic Caps and Closures Market Driven by Material Innovations
Companies in the plastic caps and closures market are increasingly adopting innovative packaging solutions, using an extensive range of polyethylenes and polypropylenes. Plastic caps and closures manufacturers are using innovative materials such as High-density polyethylene (HDPE) to ensure lightweighting in caps and closures for carbonated soft drinks (CSDs). To cater to the growing demand for lightweight plastic caps and closures closures, SABIC recently developed a new grade of HDPE with organoleptics, exhibiting strong shear thinning. Moreover, increasing demand for food products with longer shelf life, has resulted in packaging practices aimed at reducing food waste in the chain—specifically in the ready-to-eat food sector. Nanomaterials with improved barrier properties are projected to remain the most preferred alternative to layered plastics to increase shelf life and improved food quality.
Demand for One Piece Caps, Liner-Less Caps Gaining Traction
Given the growing demand for lightweight plastic caps and closures for improved size control, shorter cycle time, lower operating torque, and less effect of colorants on shrinkage, cost effective one-piece closures are high in demand. As per estimations, one-piece plastic caps and closures are projected to remain highly efficient with maximum material saving avenues, thereby reducing the conversion costs because of the elimination of the lining process in manufacturing plastic caps and closures.
Competitive Landscape Analysis: Plastic Caps and Closures Market
Mergers and Acquisitions to Remain the Key Market Strategy favoring Value Creation in Global Plastic Caps and Closures Market
Global players in the plastic caps and closures market are solidifying their market position through strategic collaborations such as mergers and acquisitions to expand their product portfolio and geographic footprint. For instance, in November 2017, Pact Group Holdings Ltd. acquired the Asian packaging operations (excluding Japan) of the Closure Systems International, Inc. for US$ 110.55 Mn. Global Closure Systems was acquired by RPC Group Plc (a plastic products design and engineering company) from PAI Partners (private equity firm) for US$ 714.6 Mn. It was formed in 2005, as a spinoff of Crown Holdings Inc.’s beverages and specialty closure business. Another key player in the plastic caps and closures market Berry Plastics Group, Inc. entered into a marketing alliance with Klöckner Pentaplast Group, a provider of packaging, printing, and specialty solutions. Most recently, Amcor announced its plan to acquire Bemis in an all-stock combination, translating into a stronger value proposition for its global, regional and local customers in the global plastic caps and closures market.
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Future Market Insights presents a detailed and a meticulously prepared report titled ‘Plastic Caps and Closures Market: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017-2027’. This report tracks the global plastic caps and closures market and presents the forecast for this market for a period of 10 years. Caps and closures are components, techniques or devices that are used to seal or close a bottle, jar, tube, can or any other container. Generally, closures are made up of metal and/or plastic. The plastics material used in caps and closures are thermoplastics and thermosets.
In order to have an ease of understanding and for a better organization of the research, the report on the global plastic caps and closures market has been divided into four distinct parts. The first part of the report comprises the introduction section with the executive summary of the report along with the market taxonomy and the definition of the product and the market viewpoint. In this section, information is also given about the top 30 beverage companies in the world in 2016. Also, the key trends operating in the global plastic caps and closures market are also given in this section of the report. A section of the report focusses on the consumer survey analysis and inputs of the top market participants about the global plastic caps and closures market. The first section of the report also presents information about the value chain analysis and the pricing analysis of the global plastic caps and closures market. The second part of the report features the global plastic caps and closures market analysis for 2012-2016 and forecast for 2017-2027 by region, cap type, material type and end use. This section of the report contains important market numbers in the form of market attractiveness index, incremental dollar opportunity and basis point share analysis. The third part of the report comprises the regional plastic caps and closures market analysis and the regions are chosen as per the market taxonomy. In these sections, the drivers, restraints and trends governing the regional plastic caps and closures markets are discussed in detail along with regional market numbers.
The last part of the report provides information on the competition landscape of the global plastic caps and closures market and includes details on the key players operating in this market. The competition landscape contains detailed information on the important companies operating in the global plastic caps and closures market in the form of company description, product overview, key developments, strategic overview and key financials of each of the featured companies along with a comprehensive SWOT analysis. This competition landscape is a valuable part of the report as it contains all the necessary information to study the leading companies operating in the global plastic caps and closures market in detail and also reveals how they implement their strategies and vision to stay at the top in this highly competitive market.
Overall market size has been analysed through historical data, primary responses, and public domain data. Revenue of companies in the global plastic caps and closures market has been benchmarked to ascertain the market size for the base year. Macroeconomic indicators such as GDP and industry growth have been considered to forecast the market size over the forecast period. The historical growth trend of end-use industries, market participants’ performance, as well as the present macro-economic outlook has been taken into consideration for estimating the overall market trend forecast. This data is then validated using the triangulation method and is extensively scrutinised using advanced tools to garner quantitative and qualitative insights into the global plastic caps and closures market.
Plastic Caps And Closures Market Reports - Table of Contents
17. Forecast Assumptions
18. Research Methodology