The inevitability of packaging applications in a stretch of industrial segments such as food and beverage, pharmaceutical, and cosmetics, is the prime impetus for the demand influx in the plastic caps and closures market. Plastic caps and closures are used in conjunction with the packaging and helps in enhancing the shelf life of the product, preserving the commodity, and maintaining the integrity of the package. Plastic materials such as high-density polyethylene, low-density polyethylene, polypropylene, and polyethylene terephthalate are used for manufacturing caps and closures. The abundant availability of these raw materials translates to the low cost of production thereby making plastic caps and closures a viable choice for packaging. Moreover, a wide range of plastic caps in different shapes and sizes can be easily molded in an economic way by using compression molding and injection molding techniques.
Therefore, the aforementioned industries are relying heavily on plastic caps and closures, as they provide a cost-effective sealing solution. Thus, the growing demand for plastic packaging solutions is considered to be the key factor fueling the growth of the plastic caps and closures market. The growth in the plastic packaging industry can be fathomed from the fact that the global trade of plastic packaging of goods has attained a value of $56 billion in 2018, an increase of 10% from 2017 to 2018. Moreover, the diminishing global demand for containers and bottles made of glass, owing to its high production cost and fragile properties is considered to be another key factor to positively impact the growth of plastic products including plastic bottle caps, plastic screw caps, and plastic dispensing caps.
The Plastics Caps and Closures Market size was valued at $45.7 billion in 2018. Moreover, the demand for plastic caps and closures is projected to prosper at a standard CAGR of 5.6% during the forecast period 2019-2025.
Global Inclination towards Eco-friendly Plastic Disrupting Plastic Caps and Closures Market—
In the present era wherein environmental pollution secures its position as the top concern of the populous of the world, environmentally friendly plastic products are gaining popularity. Around 18 billion pounds of plastic waste is discarded into oceans every year. This is just an attenuated representation of the festering figures of plastic waste across the world. So, governments across the world are heavily prompting go-green projects and initiating eco-friendly concepts to instigate people to used eco-friendly plastics. For instance, in 2017 the European Commission has announced that it will strive towards the goal of ensuring that all plastic material used for various packaging applications is recyclable by 2030. This, in turn, is creating an unprecedented demand for eco-friendly plastic caps and closures. Therefore, in order to stay in line with the changing customer preferences, the manufacturers of plastic caps and closure are using bio-plastics, biodegradable plastics, and recycled plastics for the production of caps and closures. Therefore, the growing demand for eco-friendly caps and closures is expected to provide ample opportunities for the growth of plastic caps and closures market in the near future.
North America Region Domineering Plastic Caps and Closures Market—
North America region has emerged as the global leader in the plastic caps and closures market and has a share of 32% out of the total revenue earned by the market globally in 2018. The presence of flourishing end-user industries in the developed nations including the United States and Canada is the propelling factor for the growth of the plastic caps and closures market. Owing to the high economic status and high purchasing power, there is increasing consumption of beverages such as energy drinks, alcoholic drinks, juices, etc. by Americans. The United States has dominated the global market for beverages, spirits, and vinegar, in 2018, with a trade value of $26 billion. Whereas, the beverages are predominantly packed in bottles which are sealed by airtight plastic closures. Therefore, the beverage industry is considered to be one of the major contributors to the regional plastic caps and closures market. Moreover, the growing millennial population in the workforce along with the changing lifestyles is creating unprecedented popularity for on-the-go packaged foods and retail shelf packaging. This, in turn, is driving the plastic caps and closures market. Additionally, the rapidly growing e-commerce in this region is fuelling the growth of plastic packaging which in turn augmented the plastic caps and closures market size. For instance, in the US, retail e-commerce sales increased by 13.3% from the second quarter of 2018 to the second quarter of 2019. These factors are prime dynamics for the dominance of North America in the plastic caps and closures market.
Flourishing Food industry Facilitating Plastic Caps and Closures Market Growth—
On the basis of the end-use sector, the plastic caps and closures market is bifurcated into beverages, food, pharmaceuticals, personal & home care, and others. Among these, food segment is anticipated to grow with the highest growth rate during the forecast period. Owing to the rapid industrialization and urbanization, there is an unprecedented endorsement for packaged food across the world especially in developing countries such as India and China. The growing significance of packaging in the food industry is eventually propelling the growth of the plastic caps and closure market since the caps and closure are prominent parts of the packaging and plays vital role in preserving the quality of the food packed. Therefore, the food caps and closure segment is expected to prosper at a CAGR of 5.6% through to 2025.
Plastic Caps and Closures Market Companies’ Strategies—
Key companies that are constantly striving to secure the majority of the global plastic caps and closures market share are Oriental Containers Ltd., Pelliconi & C. S.p.A., Premier Vinyl Solution Ltd., Global Closure Systems, Blackhawk Molding Company Incorporated, Closure Systems International Inc., Pact Group Holdings, Plastics Corporation, Capsugel Inc., and Agropur Cooperative. These companies are heavily investing in developing a wide variety of plastics and innovating efficient and economic production processes to manufacture a diverse range of plastic caps and closures to meet the changing customer demands and necessities. Moreover, they are adopting business strategies such as acquisitions, mergers, partnerships, and collaborations in order to stay ahead of their competitors and fortify their presence in the global market.
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