Global Personal Care Caps & Closures Market Set To Grow After Slump in 2020
The caps and closures market is expected to see an upward, bullish trend in the times to come, thanks to emerging rigid packaging markets and the demand for more aesthetic and value-added closures from caps and closures manufacturers.
The personal care caps and closures market may grow by 5-6 percent in the next two years due to increasing demand for more premium and luxury segments. This is reinforced by the growing per capita income in markets such as Asia, Eastern Europe, and Latin America, which further drives personal care products and cosmetics consumption. This industry is also a key adopter of value-added closures such as dispensing systems, convenience features, and other trends that drive up costs due to intricate design and high R&D investments.
The caps and closures trends in North America incorporate the sudden growth that organic cosmetic and male grooming products have seen. This is pertinent in the beauty packaging markets. The demand for personal care caps and closures is expected to grow by 4-5 percent CAGR over the next five years. This is because the region has the fastest-growing market for some of the new segments, which will offer a 10-15 percent CAGR over the forecast period. These new markets also require different packaging solutions and have helped drive new trends in the market.
When it comes to the Asia Pacific, increasing investments by global players has resulted in large regional players investing more in R&D to provide comparable product development services. Asia-Pacific metal caps and closures market happens to be one that will record the fastest growth, with a CAGR of about 7-8 percent in 2020-24, owing to the healthy growth of personal care products. China and India are expected to lead this, with the personal care market expected to grow at about 11-13 percent. The market in China, India, South Korea, and Malaysia is witnessing a rising demand for premium and luxury segments and demand for natural and organic products. This has led to the growing demand for more premium packaging, driving up the packaging costs and margins. As a result, many large regional suppliers have launched several innovative products to compete against global suppliers, leading to a highly competitive market.
Western Europe is one of the largest markets for premium and luxury cosmetic products, but APAC's penetration levels have remained low. With its growing per capita income and an increasing number of regional premium brands, the caps and closures market trends show a 10-12 percent CAGR over the next few years.
Another key growth region for premium and luxury cosmetics is Eastern Europe and the Middle East. Multiple mergers of key regional players with global players have consolidated the companies' supply base, propping the European market to telecast a growth in the personal care caps and closures segment --- 4-5 percent CAGR over the next five years.
Europe also has the most extensive customer base for premium and luxury segments in personal care and is forecasted to grow at about 5 percent. Its environmentally-conscious customer base will look out for more healthy and sustainable cosmetic products, which will result in a higher demand for premium products, the report predicts.
The global caps and closures market will see segments such as male grooming products and organic cosmetics (to grow at about 8-10 percent CAGR), especially in developing markets like Asia-Pacific, where the demand is forecasted to grow at about 8-9 percent. As a result, several new designs have come up in closures. Additionally, the plastic caps and closures market is under immense pressure to provide better-looking caps that provide metal or wood-like finishes.
- Consumers want more value-added packaging, and this has increased innovations for more functional closures.
- Designs such as beads dispensing pumps and 360 degree dispensing pumps have become more common across brands. It has enabled them to overcome design challenges in facewash and cosmetics segments.
- The premium and luxury personal care segment faces high competition from large regional brands, especially in the APAC market, where there is huge growth potential. Regional brands have a better market understanding, better visibility, and lower costs when compared to global brands.
- Brands that do well cut down on packaging costs by focusing more on functionality and work with regional converters to develop low-cost innovation that offers comparable performance.
- These closures provide a more premium look to the packaging without a significant increase in overall costs.
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