Sport Caps And Closures Market

2020 Analysis and Review: Sport Caps & Closures Market by Material - Polypropylene (PP), Polyethylene terephthalate (PET), et al for 2020 - 2030

2020-10-13
REP-GB-2762
192 pages
Packaging

Introduction

Sport caps and closures are a type of packaging and closure solutions that are used to tighten the opening end of containers used to store liquids.

Predominantly used as sealing of water bottles and other portable beverage containers, they are an essential solution in the beverage industry, especially in the packaging of energy and health drinks, and steel water packaging applications.

Manufactured using plastics - polypropylene (PP) and polyethylene (PE) in specific - sport caps and closures are light in weight, strong, economical, and widely available. Moreover, they are available in different sizes and thicknesses, ranging from diameter of 10 mm to 50 mm.

As beverage manufacturers seek packaging solutions that minimize the risk of leakage, sport caps and closures have become the ideal solution due to their sealing efficiency. On these lines, screw closures are currently the most popular cap type and manufacturers are focusing on maintaining the high quality of products.

Growing Beverage Consumption

Over the years, the production and consumption of beverages - including water, energy drinks, juices, etc. - has significantly grown. For instance, in 2016, the consumption of bottled water in the US surpassed the consumption of carbonated soft drinks in terms of volume.

In the US, consumption of bottled water surged past 14 billion gallons in 2018, growing by 5.8% from the previous year.

The growing consumption of beverages has, in turn, increased the demand for packaging solutions, thus creating a significant opportunities for the sport caps and closures market.

Europe and Asia reflect similar consumption patterns, thereby, creating significant opportunities for sport caps and closure market players.

On the other hand, the market in South Asia and Latin America is bolstered by the expanding base of working-class demographic and the subsequent spending on food and beverages.

In addition to the ever-growing consumption of beverages, shifting preference from conventional packaging to eco-friendly, rigid and flexible packaging solutions will continue to influence the growth strategies of market players through the assessment period. The sports caps market is likely to grow significantly during the assessment period.

Changing Preferences Fuel Growth

Since plastic is the most popular raw material utilized in the production of sport caps and closures, rising awareness pertaining to the usage of post-consumer resin (PCR) is expected to bestow substantial opportunities to market players.

Regulations on the fair-use of plastic have also led to a decline in demand. On this premise, recycling of plastics is expected to become stronger during the assessment period.

Packaging manufacturers are seeking recycled and recyclable plastic products, backed by increased awareness regarding the need for proper management of plastic wastage.

Latching on to the trend, manufacturers are now focusing on developing environment-friendly, sustainable products, complying with the regulations in place, and reducing production costs.

The development of light-weight sport caps and closures with low levels of plastic has emerged as a key supply trend, and is expected to mutually benefit consumers and producers.

For instance, PACCOR, a U.K.-based player, recently introduced its new light-weight bottle closure, with 13% less plastic content as compared to its previous offerings.

In addition to eco-friendliness and efforts to reduce the unnecessary usage of plastic, lightweight sport caps and closures offer benefits such as better size control, shorter cycle time, and lower operating torque.

Likewise, growing demand among millennials for convenient packaging solutions with innovative features such as easy to open, headstand packs, and better flow-control will continue to drive the growth of the market.

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Availability of Alternatives

Although recycling plastic has been identified as a way to curb pollution levels, it serves the cause only to an extent. This has led to blanket bans, thereby creating challenges on both the supply and demand sides.

In 2019, the European Union voted for the ban of single-use plastics - including plastic drinking bottles and plastic bottle caps - and is on the way for a stringent implementation in 2021. Such regulations are likely to hinder the production and the subsequent sales of products.

Furthermore, customizing products as per the changing government regulations necessitates research and development resources, which small and medium scale organizations find arduous to afford.

Owing to the imposition of stringent rules, consumers are opting for environment-friendly alternatives, and availability of closure-less packaging products has emerged as a threat to the adoption of sport caps and closures.

Moreover, beverage packaging manufacturers are gradually shifting towards closure-less tetra packs and flexible pouches owing to ease of manufacturing and surging consumer demand for convenient products. This is likely to further impede the demand for plastic sport caps and polyethylene sport caps during the assessment period.

Region-wise Analysis

North America Sport Caps and Closures Market

North America is expected to prevail as the leading market for sport caps and closures through the forecast period, capturing nearly 1/3rd of global value.

The region’s lucrativeness is attributed to the presence of a thriving beverage production and packaging industries in the US. Furthermore, the region is also home to the several key players - such as Berry Global Inc., Silgan Holdings Inc., and AptarGroup, Inc.

Food & beverage industry plays a crucial role in shaping the economy of the US, which has remained one of the leading beverage producers and consumers over the years.

On a broader level, a recent report by Committee for Economic Development named Economic Contribution of the Food and Beverage Industry revealed that over US$ 8 Bn is invested to develop new products and processes in the food beverage industry.

Although this reflects only a portion of the spending on beverage packaging, it indicates that the need to develop novel solutions always exists, subsequently offering revenue opportunities to players operating in the sport caps and closures market.

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Europe Sport Caps and Closures Market

Following North America is Europe, which is poised to remain the second most lucrative region through the forecast period.

Germany is anticipated to remain the largest market for sport caps and closures, while France, Italy, and the UK cumulatively account for more than half of Europe’s market share. Demand for sport cap bottles is likely to remain high throughout the forecast period.

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East Asia Sport Caps and Closures Market

East Asia is foreseen to remain a prominent region through the forecast period, capturing the third-largest share. The market in the region is aided by the presence of a densely populated nation such as China, which is also flourishing on the industrial front.

China houses a thriving packaging industry that goes hand-in-hand with the food & beverage sector. Besides, an increased number of people are highly conscious of healthy drinking habits and the consumption of water and health drinks has gradually increased over the years.

As per the estimates of the Direct China Chamber of Commerce (DCCC) China, the consumption of bottled water is expected to reach 49 million metric ton by 2020 in the nation. This will directly influence the demand for sports cap and closure, driving the market on a positive growth trajectory.

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Category-wise Insights

Cap Type: Screw Closures Remain Sought-after

On the basis of the type of cap, screw closures are projected to remain the most sought-out cap, capturing more than 2/3rd of the global market value. High preference for screw closures is majorly attributed to easy penetration and proven efficiency in offering sealing.

On the other hand, although relatively lower in share as compared to screw closures, snap closures are expected to remain the second most popular cap type, holding nearly 1/5th of market share.

Plastic Products Remain Preferred

Plastic-based sport caps and closures account for leading market share. Despite the environmental concerns, demand continues to be high owing to attributes such as great strength, high resistance to cracks, affordability, and easy availability.

Sustained Demand for 21-30 mm Category

Sport caps and closures with a diameter in the range of 20 mm to 30 mm account for nearly half of the market share. The high preference for these products is attributed to the popularity of bottles in that size range that subsequently necessitates closures solutions that fit these bottles.

Competitive Landscape

The development of novel products with innovative features has been identified as the primary growth strategy adopted by players to strengthen their foothold in the competitive landscape.

The need to enhance and re-work product designs emerges from evolving regulatory norms and increasing inclination towards sustainable and eco-friendly solutions.

On these lines, BERICAP Holding GmbH, launched an advanced sustainable closure solution customized for the beverage industry in 2019. Likewise, Closure Systems International, Inc. introduced a 38 mm closure, specially designed for dairy and non-carbonated beverages.

Similarly, players are working on organic strategies such as the expansion of manufacturing capacity, widening geographical footprint, and reducing production expenses. A key development is the acquisition of Albea's Global Dispensing Business by Silgan Holdings Inc. to strengthen its closure solutions division.