The Total Addressable Market (TAM) for Caps And Closures was valued at USD 90.88 billion in 2021. It is expected to reach USD 137.40 billion by 2030, growing at a CAGR of 4.7% during the forecast period (2022–2030).
Caps and closures play a significant role in packaging and are used on various containers, including cups and cans. Caps and closures are primarily used to protect products and increase their shelf life. With proper content dispense, caps and closures help keep the contents sealed and fresh for specific shelf life. The caps and closures protect against sand, moisture, and other unwelcome premature openings. These also offer advantages like stress crack and creeps’ resistance, impact performance, scalability, and exceptional taste and odor-restraining qualities. Caps and closures are constructed from materials suitable for product packaging, such as rubber, metal, and plastic.
|Market Size||137.40 billion|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Rising Non-Alcoholic Beverage Consumption
Alcoholic and non-alcoholic beverage consumption has increased worldwide over the past few years. Due to a growing population of health and wellness-conscious consumers, natural, healthy, and valuable beverages have influenced the non-alcoholic beverage market. Increased or new soda sugar taxes have been implemented in several markets, including the Philippines, South Africa, the UK, the United Arab Emirates, and Saudi Arabia. As a result, the demand for healthy substitutes is increasing.
The market for non-alcoholic beverages has undergone two significant changes as a result of these factors: first, the popularity of natural soft drink substitutes like packaged herbal or green teas and juices, and second, an increase in the consumption of functional drinks that are fortified with botanicals, herbs, vitamins, and minerals. Innovative designs created by caps and closure companies, like sipper closures, have increased consumer demand for new product designs. Therefore, it is anticipated that the market will grow over the forecast period due to the rising consumption of non-alcoholic beverages.
Limited Recycling of Capital Strips and Closures
Some of the leading market restraints include strict environmental legislation and policies and increasing restrictions on the disposal of plastic waste in landfills. In addition, consumer goods, cosmetics, and beverage packaging are now subject to stringent regulations due to rising plastic pollution. Many businesses are developing caps and closures made of virgin and post-consumer recycled material. Still, these products are only suitable for a limited number of applications because of the strict regulations governing packaging for food, drink, and healthcare products. Furthermore, many closures are two-piece constructions made of multiple materials or mixtures of materials, making recycling impractical. Therefore, it is anticipated that the factors above will serve as market inhibitors for caps and closures.
By region, the global caps and closures market is segmented into North America, Asia-Pacific, Central and South America, and the Middle East and Africa.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant shareholder in the global caps and closures market and is expected to grow at a CAGR of 5.6% during the forecast period. With significant growth potential, the Asia-Pacific region is anticipated to represent the most significant potential market for caps and closures. The region's high market penetration of ready-to-drink beverages in numerous countries is the primary driving force behind caps and closures. Consumers are beginning to demand alternatives to packaged foods and beverages as their disposable incomes rise. This has prompted beverage producers to experiment with different packaging options, encouraging the introduction of new types of caps and closures like sipper bottles and packaged coffee that is ready to drink.
North America is expected to grow at a CAGR of 3.6%, generating USD 27,522.5 million during the forecast period. The demand for beverage packaging products is expected to increase due to the rising consumption of alcoholic beverages in nations like the United States and Canada. The widespread consumption of beer, wine, and spirits in nations like the United States and Canada is predicted to increase demand for crown closures and metal ends in the region. According to data from The Food Industry Association released in January 2020, alcoholic beverage sales in supermarkets in the United States in 2018 were worth USD 24,313.51 million. The demand for beverage packaging components is anticipated to be driven by the increasing number of beverage businesses in the region.
Brazil, Argentina, Columbia, Chile, and other emerging nations are among those found in Central and South America. The region's high rate of urbanization, rising income levels, and growing population are all predicted to increase demand for both alcoholic and non-alcoholic drinks. The demand for caps and closures is anticipated to be driven by shifting consumer demand for ergonomic, dependable, and convenient packaging solutions in dairy products, ready-to-eat meals, home care, personal care, and pharmaceutical applications.
Caps and closures are likely in higher demand in the Middle East and Africa due to rising packaging product demand from various end-user industries, such as food and beverage, cosmetics, and automotive. According to the report OECD-FAO Agricultural Outlook 2018–2027's chapter titled "The Middle East and North Africa: Prospects and Challenges," consumption of prepared meals and processed foods is likely to rise in the MENA (the Middle East and North Africa) region. This is expected to increase per capita vegetable oil consumption from 19 kg per year in 2018 to 22 kg per year by 2027. It is anticipated that this will contribute to rising demand for edible oil packaging, increasing demand for the global caps and closures market over the forecast period.
The global caps and closures market is segmented by material, product, and application.
Based on material, the global caps and closures market is bifurcated into plastic and metal.
The plastic segment is the highest contributor to the market and is expected to grow at a CAGR of 5.2% during the forecast period. The most common packaging material is plastic, which is used in many end-user industries, including food, pharmaceuticals, personal care, and automotive. This is because plastic is lightweight and can be molded into any required shape. Since crude oil is the primary source of plastics, they are referred to as petrochemicals. Styrene, ethylene, and propylene are all considered building blocks that, when polymerized, create various raw materials for product packaging, such as polyethylene, polypropylene, and polystyrene. Plastic closures and caps function as a moisture and gas barrier for the contents and an effective seal for the container. In order to avoid spills, liquids must be packaged with tight seals.
Several kinds of bottled products use metals, such as steel and aluminum, for their seals. Metal closures are becoming more and more common because they are less harmful to the environment than plastic. Metal caps are frequently used to close glass bottles and metal cans, but players are concentrating on using metal closures for plastic containers to improve sustainability. For instance, in January 2017, Crown introduced new metal closures for PET-based containers that offer durable sealing options. Market players are concentrating on producing closures from metals like steel and aluminum because they are more durable and recyclable than plastics. For instance, aluminum Closures are available from Closure Systems International for use with glass and aluminum bottles of carbonated and non-carbonated beverages. Soft drinks, flavored milk, cold coffee, sports drinks, and other beverages are frequently packaged in metal cans. Therefore, as the use of these cans grows, so does the need for closure products.
Based on product, the global caps and closures market is bifurcated into dispensing caps, screw closures, crown closures, and aerosol closures.
The dispensing caps segment owns the highest market share and is expected to grow at a CAGR of 5.4% during the forecast period. Most caps used to dispense liquid or semi-solid products, like oils, creams, or lotions, are plastic. These caps simplify dispensing and let you regulate how much product leaks from the container. Dispensing caps efficiently seal the container and are simple to open and close by the demands of a particular application. Dropper caps, flip tops, yorker caps, and pump sprays are a few examples of dispensing cap types. For instance, the packaging products company Qorpak offers a variety of dropper assemblies with dispensing tubes made of glass or plastic, attached to polypropylene closures, and rubber bulbs for squeezing. They can be used for products that require precise distribution of concentrated liquid, such as essential oils, ink bottles, face serums, nail care, and eye care. A cone-shaped spout with a tiny orifice is in a yorker-style cap to allow for controlled product delivery.
Screw caps are caps with internal threading, which is required to seal the container tightly. These caps can be twisted to release the product and then back to seal the container. A series of short, angled protrusions are also threaded into the container's outer neck. These caps can be produced from plastic, tinplate, or aluminum. For a tight seal, screw caps need inner liners made of materials like foam. Double-wall screw caps with large outer wall diameters work with both HDPE and PET containers. When the inner wall of the container has threading, such closures can be used on toothpaste tubes, lotion bottles, cream tubes, and oil bottles.
Based on application, the global caps and closures market is bifurcated into food, beverages, healthcare, cosmetics and toiletries, automotive, and pharmaceutical.
The food segment is the highest contributor to the market and is expected to grow at a CAGR of 4.8% during the forecast period. Food products are frequently packaged in glass, metal, and food-grade plastic containers. The demand for various food packaging components is likely to increase due to the rising popularity of packaged foods, ready-to-cook foods, and ready-to-eat foods. Food products are packaged in glass jars, metal cans, flexible packaging pouches or bags with caps, plastic tubes, and other containers. In addition, ketchup and sauce are kept in flexible packaging pouches with dispensing caps to ensure smooth product flow. There are also readily transportable jam tubes on the market, but they need screw caps to close them. In order to extend the product’s shelf life, pickles, salsa sauce, jellies, and jams are packaged in glass bottles with metal closures.
To preserve the aroma, taste, and consistency of the filled beverages, caps and closures are essential components of beverage packaging. They shield the filled beverages from external environmental changes. Alcoholic drinks, ready-to-drink coffee or tea, juices, milkshakes, and plain and sparkling water are frequently packaged in plastic or glass bottles with metal or plastic closures. In various styles, wine bottle closures made of aluminum and PE are available from Amcor. In addition, sports caps and closures are in high demand because functional beverages and sports drinks are widely consumed by sports enthusiasts worldwide. In order to draw customers, beverage cans are sealed with metal ends that come in various hues, designs, and coatings. For instance, Cans with coded tabs are available from Ball Corporation, which clients can use to increase customer loyalty. A code is printed on the can ends, and when you open the can, the code is revealed. Client companies use these strategic initiatives as a marketing tool to increase the use of coded metal ends on beverage cans.
The global caps & closures market’s major key players are