Caps and Closures Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Caps and Closures

• Plastic caps and metal closures hold a market share of about 73–75 percent 24–25 percent, respectively. The rest is shared between rubber and cork
• The Beverage industry is the largest end-use segment and accounts for about 50–55 percent of the overall market
• Bottled water is the fastest-growing end-use market (CAGR 7–8 percent), especially in the Americas and APAC, as more consumers switch from CSDs to more healthy beverages
• Adoption of user-friendly features, such as dispensing and child resistance, is driving the value growth in the market, at a CAGR of about 5–6 percent, until 2024

• The development of flexible packaging options, such as pouches, is restraining the market

Key Trends and Innovations

• Anti-counterfeiting Closures: The penetration of anti-counterfeiting closures is high in alcoholic beverages, especially in the premium segment. Currently, such closures are penetrating other F&B segments. Innovations include holograms, QR codes, RFID chips, etc. As the market grows in other segments, cheaper and highly scalable mechanisms will be adopted by the industry

• Functional and User-friendly Closures: As a result of growing consumer pressure, especially from mature markets, brands are switching to more user-friendly designs. Features, such as child resistance, are becoming regulatory requirements. These factors are expected to foster a multitude of innovations that offer many user-friendly functionalities, such as dosage measuring, dual-spout closures, etc

• Dispensing and Smart Closures: Many pharma firms have incorporated dispensing closures or smart features into their packaging. Techniques, such as NFC, Bluetooth, etc., are being used by firms to communicate dosage and promotional information to consumers. As such closures command a much higher price than conventional ones, the cost of packaging is expected to increase in the pharma industry

Value Chain Analysis: Plastic Caps

The report analyzes the value chain for plastic caps and metal caps individually. The manufacturing process of caps and closures are organized into tiers in the value chain. The proportional contribution to the overall value at each stage of the process is stated. The value chain also has a power shift at each level that has been described in the report. The key global suppliers involved in the value chain are also listed.

• PP and HDPE are the preferred resins for manufacturing plastic closures. the Injection molding process is the most favored technology for manufacturing caps and closures
• Compression molding is a new technology, but it has started replacing injection molding in the manufacturing closures, owing to faster process in mass production and the ability to manufacture light-weight closures

Global Market Size: Caps and Closures

• The caps and closures market is expected to grow at the rate of 4–4.5 percent by volume during 2022–2024, with plastic caps and closures driving the demand

• In the next five years, beverages, especially bottled water, will drive the volume growth, whereas user-friendly and functional closures in personal and home care and pharma are likely to drive the value growth

• Plastic caps contribute to 75 percent of the entire caps and closures market and drive the market with a CAGR of 4.5–5 percent during 2018–2023

• The increasing demand across beverages, especially in the emerging markets, is the main caps and closures market growth driver

• The bottled water segment is expected to drive volume growth in the near future, with a CAGR of 7–8 percent, during 2022–2024

• The market share of metal closures is expected to decrease from 24 percent to 22 percent by 2020, as plastic closures replace metal in multiple segments across beverages, cosmetics, and pharma

• Corks expected a decline of around 3 percent CAGR 

• Rubber stoppers are expected to witness a significant growth of 7–8 percent, with growing parenteral route administration in the pharma market

• The value growth is expected to be driven by increasing demand for user-friendly closures, especially in the personal and home care segment

Regional Market Overview

• The APAC is the largest market for caps and closures and is likely to experience strong growth in the next five years, with growing beverages in the domestic market

• The E.U. and North America are expected to grow at a CAGR of about 2.53 percent and 2–2.5 percent, respectively, driven by bottled water and beverage segments

• APAC, with a market share of about 36 percent, is the fastest-growing market, with an estimated CAGR of about 5–6 percent over the next four years
  –The growth is driven by a rapidly growing market for beverages, especially bottled water, beer, and other juices
  –The market share is likely to surpass 40 percent by 2024

• Africa and the Middle East are expected to witness a similar growth as that of Asia, due to the growing disposable income and penetration of beverages
  –In Africa, demand for metal caps and closures is expected to grow at about 4.5–5 percent CAGR during 2018–2023, compared to the global growth of 2–2.5 percent CAGR

• China accounts for over 15 percent of the global plastic caps and closure market –China would continue to grow at about 7–7.5 percent CAGR in the segment, owing to increasing domestic and export demand
  –Exports from China have been growing at about 6–6.5 percent CAGR over the last three years

• Volume growth in North America and the E.U. is considerably slow, owing to the slowing down of key end-use markets, like CSD and beer
  –The bottled water market is growing at 7–8 percent CAGR, sustaining growth in the next five years

Global Demand by Application

The downstream segments drive the demand for caps and closures, while other factors from the end-user drive innovations. The report details caps and closures market research information with global demand classified by the application of the caps and closures. The downstream demand outlook driven by different demand dynamics is described. Advancement in technology and an increase in the application and usage of the product also affect the demand for the products.  

Global Trade Dynamics

The balance of imports and exports in each region are wildly varied. Some regions remain the top importers of caps and closures while others are in decline. The fastest-growing importers are also listed in the report. The value of the imports and exports in each region is illustrated. The reasons for the changing status of the region are also analyzed and described. 

Global Exports of Caps and Closures

Certain countries are the largest exporters of caps and closures and dominate the global market. This caps and closures market report illustrates the export market share of each country. It also details which countries each region exports to, with facts and figures pertaining to export volumes. 

Global Imports of Caps and Closures

The market share of imports is illustrated country-wise. The countries from which each country imports alongside the import volumes are listed. 

Regional Market Snapshot

This section of the report analyses the market of each region individually. The regions that are studied are North America, EU, APAC, and LATAM. The report gives a detailed analysis of the regional market information, market maturity, takeaways, market demand by material, demand by the industry as well as the export and import data. 

Industry Analysis

The report goes into in-depth analysis and studies globally and regionally. The developed regions and emerging regions are described separately. The report analyses the supplier and buyer dynamics in each market. The challenges and constraints are also described. 

Industry Drivers and Constraints

This section of the report clearly lists the different factors that drive industry growth. The innovations and increasing applications of caps and closures that help the industry grow are described. Likewise, the factors that pose a challenge to and that constrain the industry are listed. 

Key Industry Trends: Plastic Caps and Closures

The caps and closures market news and important trends are detailed. The innovative closure or cap is described and the details of how the market is likely to react to and apply the innovations are analyzed. Examples of how and where the new trends are applied are given.

Innovations in Personal and Cosmetics

The highly competitive and challenging world of personal care and cosmetic products is constantly innovating in response to customer expectations and competition. This has fostered advancements in the design as well as applications of caps and closures. In some cases, the very purpose of a cap/closure has been reinvented. The timelines of these innovations and their details have been explained and illustrated. Some of these innovations are in response to eco-friendliness and sustainability trends. Caps and closures include pumps that are integrated into the caps of some products. Some companies have innovated and created signature dispensing cap and closure solutions. 

Key Industry Trends: Food and Beverage

The food and beverage industry is also very competitive and highly innovative. many of the new designs of closures and caps improve the customer experience, improve sustainability, are multipurpose, or fulfill the other demands based on application.