The increasing demand for effective packaging to ensure the longer shelf life of food and beverages is the key factor driving the global caps and closures market. The market is currently witnessing impressive demand from Asia Pacific. As per Transparency Market Research (TMR), a paradigm shift in consumer preference from unpackaged to more convenient and packaged food products is fuelling the demand for caps and closures from the region’s packaging industry. The market is also gaining from the rising use of caps and closures in the alcoholic beverages segment.
Despite witnessing favorable growth opportunities, the advent of flexible packaging is likely to dampen the market’s growth to an extent. Nevertheless, the increasing investment by manufacturers in novel technologies, designs, and materials is expected to boost the market in the near future.
According to TMR, the global caps and closures market, which stood at US$36.23 bn in 2014, is expected to reach US$51.57 bn by the end of 2021. If these figures hold true, the global caps and closures market will exhibit a CAGR of 5.2% between 2015 and 2021.
Rising Consumption of Alcoholic Beverages to Fuel Demand for Caps and Closures
In terms of revenue, the alcoholic beverages segment held over 57.35% of the overall caps and closures market in 2014. The rising consumption of beer around the world has been fuelling demand from the alcoholic beverages segment. While this has led to the increasing use of metal crowns for beer bottles, metal screw closures are fast replacing corks used in wine bottles. The segment is also expected to gain impetus from the rising consumption of wine across emerging economies.
The non-alcoholic segment includes caps and closures manufactured for the packaging of bottled water and carbonated soft-drinks. The shifting demand of consumers from carbonated soft drinks to bottled water is expected to fuel the demand for caps and closures in this segment. Bottled water is calorie-free, which is the key factor boosting its sales worldwide. This will, in turn, fuel the demand for caps and closures.
Increasing Purchasing Power of Consumers Puts Asia Pacific at the Fore
Regionally, Asia Pacific led the global caps and closure market in 2014, with China and India emerging as lucrative markets. The rising demand for canned food and beverages is the primary factor driving the Asia Pacific caps and closures market. Furthermore, due to rising purchasing power and improving living standards, consumers in this region have become more willing to spend on packaged products and convenient foods. The consumption of alcoholic beverages has increased as well. Spurred by these factors, the market for caps and closures in Asia Pacific is expected to reach US$18.75 bn by the end of 2021.
Besides this, TMR also projects that the market will witness considerable growth in developed economies across Europe and North America. The rising demand for plastic packaging in these regions is fuelling the demand for plastic screw caps, which in turn, boosts sales opportunities for caps and closures manufacturers.
Some of the leading companies operating in the global caps and closures market are Silgan Holdings, Plastics Corporation, Crown Holdings, Closure Systems International, Aptar Group, and Pact Group Holdings.
The global caps and closures market is driven by emerging economies. China and India are two of the key caps and closures markets in the world. Caps and closures are used mainly in the packaging industry to preserve products to extend their shelf life. In the past, North America dominated the global packaging industry. However, the change in manufacturing trends has led to key companies to shifting their manufacturing bases from developed economies to emerging economies.
These trends have, in turn, substantially driven the packaging sector in emerging economies. Caps and closures being a significant segment in the global packaging industry will witness strong growth in emerging markets. Broadly, the global caps and closures market is segmented on the basis of product type, application, and geography.
The research study on the global caps and closures market offers strategic market forecasts. These forecasts will help businesses understand the growth framework of the global caps and closures market for the food and beverages industry. Forecasts for the period of 2015 to 2021 are available in the report for both volume and value. In addition to this, the report delivers valuable forecasts for various segments of the market, which will help firms gauge the growth prospects of these segments.
Overview of the Global Caps and Closures Market
In terms of value, the global caps and closures market is projected to expand at a CAGR of 5.20% during the forecast period. In 2014, the market was worth more than US$36.2 bn and by 2021, the market is expected to be worth over US$51.5 bn. In terms of volume, the global caps and closures market is expected to expand at a 3.50% CAGR. In 2014, the market recorded 1342.2 bn units and by 2021, it is projected to record 1702.1 bn units.
On the basis of product type, the global caps and closures market is divided into beverage caps and closures and food caps and closures. Some of the caps and closures used in the beverage closures segment are metal screw closures, corks, metal crowns, and plastic screw closures. In 2014, plastic screw closures led the beverage closures type segment in the global caps and closures market both in terms of value and volume in 2015. The rising consumption of beer and bottled water is driving the plastic screw closures segment in the global caps and closures market.
Region-wise, the global caps and closures market is segmented into North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America. Asia Pacific dominated the global caps and closures market both in terms of revenue and volume in 2014. The Asia Pacific market for caps and closures benefits from the rising demand for metal food cans. Nevertheless, it is Latin America that is projected to expand at the highest CAGR of 7.2% in terms of revenue during the forecast period.
Companies mentioned in the research report
Players in the global caps and closures market are eyeing emerging economies of Asia Pacific and Latin America. Some of the key players operating in the global caps and closures market are Berry Plastics, Crown Holdings, Silgan Holdings, Closure Systems International, Reynolds Group Holdings, AptarGroup, and Pact Group Holdings.
Product types covered under this research study are:
- Food caps and closures
- Beverages caps and closures
Global Caps and Closures Market for Food and Beverages Industry by Food Closures Type
Product types covered under this research study are
- Peel-off foils
- Easy-open can ends
- Metal lug closures
- Plastic screw closures
Global Caps and Closures Market for Food and Beverages Industry by Beverage Closures Type
- Plastic screw closures
- Metal crowns
- Metal screw closures
Global Caps and Closures Market for Food and Beverages Industry by Application
- Alcoholic Beverages
- Non Alcoholic Beverages
Global Caps and Closures Market for Food and Beverages Industry by Alcoholic Beverages type
Global Caps and Closures Market for Food and Beverages Industry by Non Alcoholic Beverages type
- Bottled water
- Carbonated soft drinks
Global Caps and Closures Market for Food and Beverages Industry by Geography
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments