Global Metal Caps and Closures Market - 2023-2030

Global Metal Caps and Closures Market - 2023-2030

Market Overview

The global metal caps and closures market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 4.0% during the forecast period (2023-2030).

Caps and closures are made from plastics, metals, wood and rubber. It is one of the packaging solutions provided to various industries, including pharmaceuticals, food and beverage, cosmetics, paints and lubricants, among others which are mainly involved in the packaging of their products in plastic or glass bottles and jars. Metal is used for caps and closures to eliminate random oxidation, leakage, tainting and change in the product's flavor. Aluminum, steel and tin plate are the materials used to manufacture metal caps.

Market Dynamics

The product safety features and user-friendly properties of metal closures market drivers. However, fluctuations in raw material prices could be a major market restraint.

Product safety features and user-friendly properties of metal closures

One of the major drivers for the increase in the metal caps and closure market is the design innovations and launch of value-added offerings by key players. Increased regulations on the safety and efficacy of food and beverage products and pharmaceutical formulations drive the demand for tamperproof, airtight, threaded, dispensing-friendly metal caps and closures. In addition, the launch of metal caps and closures with added functionalities such as open ability, resealability and flavor incorporation drives the packaging industry's preference toward metal. For instance, there is a growing consumer preference for alcoholic beverages that are aesthetically appealing and provide novel taste sensations.

Consumers increasingly seek a smoother pouring experience, ease of handling and portability. As a result, vendors increasingly rely on visually appealing designs and value-added products for improved revenues. Most companies are making these value-added additions by providing attractive metal closures. For instance, Amcor has introduced hot-fill polyethylene terephthalate (PET) containers with metal closures. Usually, these packs were available in a glass container, but consumers can enjoy the same quality product in a lightweight polyethylene terephthalate (PET) bottle with this container on the market. Hence, such improved design patterns with additional value-added advantages have increased the demand for metal caps and closures in the forecast period.

Fluctuations in raw material price

With a drop in aluminum prices and the easy availability of processing machinery, the entry barriers into the metal caps and closure manufacturing market have become minuscule, resulting in the entry of many players. At the same time, most small-scale manufacturers rely on simple design and basic resin formulations. It established large players who often are original equipment manufacturers (OEMs) of large fast-moving consumer goods (FMCG) companies that use sophisticated designs and emphasize quality and performance. Low-end players encounter huge prices based on competition because of many players and a low degree of differentiation.

The profit margins of original equipment manufacturers are often under strain on the high bargaining power of fast-moving consumer goods companies. Players often resort to aggressive pricing tactics, affecting the industry's profit margins. In addition, volatile resin prices and rising energy prices pose severe uncertainty to the vendors, often denting their return on investments and return on capital employed.

COVID-19 Impact Analysis

The COVID-19 problem had a detrimental effect on the world's metal caps and closures market. The decline in the global economy is also causing the industry's upheaval. The market for personal care ingredients has suffered due to manufacturing plants closing. The pandemic has affected how much money consumers are spending on necessities. Numerous significant players likewise stopped their primary manufacturing. To stop the growth of their products during COVID-19, they organized COVID-19 and vaccination centers for their workers and the broader public.

The COVID-19 problem had a detrimental effect on the world's metal caps and closures market. The decline in the global economy is also causing the industry's upheaval. The market for personal care ingredients has suffered due to manufacturing plants closing. The pandemic has affected how much money consumers are spending on necessities. Numerous significant players likewise stopped their primary manufacturing. To stop the growth of their products during COVID-19, they organized COVID-19 and vaccination centers for their workers and the broader public.

However, as the market grows, businesses begin to enlarge their production facilities to meet the anticipated demand for their products. There are some encouraging signs for the future of the cosmetics industry, even though the COVID-19 epidemic will have a significantly greater economic impact on brands and stores than any recession. Customers stocked up on groceries, toiletries, handwashing liquids and hand sanitizers due to the uncertain nature of the issue. The market for metal closures and caps has profited from the rise in popularity of hand sanitizers and handwashing soaps. However, manufacturing interruptions during the worst epidemic had little impact because of unaffected demand from a few end-use industries, such as pharma.

Segment Analysis

The global metal caps and closures market is classified based on material, product, application and region.

Easier manufacturing process, resistance to rusting, lightweight and cost-effectiveness compared to other materials enable aluminum to dominate the market.

Aluminum Caps are most commonly used for packaging whisky and other related alcoholic beverages. Aluminum caps also found usage in wine packaging, where aluminum caps are most widely utilized compared to other materials. Aluminum closures are used heavily in tin cans packaging along with beverage and food packaging, including ketchup and smoothies, among others.

It has also found usage in pharmaceutical product packaging, such as vaccines, injections and glucose bottles. Aluminum caps are also used as child-resistant packaging for nutraceutical and pharma products since they provide strength and can’t be opened easily by a child compared to other materials such as plastic and steel. Aluminum also doesn’t scratch a child's finger while opening the package, whereas other materials can leave a cut when touched.

The tall caps made up of Aluminum have become the popular choice for the packaging of wine & spirits as the material is most favored to traditional closures such as synthetic or natural corks owing to aluminum strength and excellent sealing performance with other materials present in the market.

Companies such as Scami are coming up with recent technology to cover the broader application of tall caps in beverage industries with a neutral material made of Aluminum as the latest-generation liners, reducing the oxygen passage and other potential oxidants to a few parts per million. Aluminum ensures the product’s organoleptic quality and reduces product contamination due to the material which makes the cap itself. In contrast, other material reacts quickly with the product and affects the natural behavior of wine and other alcoholic beverages. Aluminum cans are highly utilized in food and beverage packaging such as milk, oil, chemicals, soups and other liquids. The material offers excellent malleability, which makes the manufacturing process easier; Aluminum does not show rusting and is lightweight and cost-effective compared to other materials. Aluminum cans are recyclable packaging units in the market and are the most preferred material in different packaging industries.

Geographical Analysis

Increasing consumption of beverages with a rising need for convenience allow Asia-Pacific to dominate the global metal caps and closures market

China is known for its food globally; however, China's staple food is rice in the southern region and wheat-based bread and noodles in the northern region. Companies have developed easy open-end aluminum cans with self-heating technology for foods and beverages. The heating element includes aluminum and silica, two delicate materials which can undergo a chemical reaction to produce a large amount of heat in an intimately mixed powdered state. The metallic packaging self-healing technology helps customers get fresh food with excellent sealing properties.

Various non-alcoholic drinks in China, such as Vitasoy, Ye Shu Pai Ye Zhi, Mai Dong, C100, Jia Duo Bao and Red Bull (China-style), demand is growing in the country. Generally, metallic ROPP caps and crown-metal caps are used for these drinks' packaging as they offer excellent sealing and do not react with the stored drink compared to other types of packaging. India is the land of spices and pulses. Many herbs are produced and transported across different parts of India and the world. Glass jars and containers have metallic caps such as twist-on caps and ROPP caps are predominantly used for packaging and storing spices and pulse. The closures impart outstanding vacuum resistance with excellent sealing and re-sealing properties. Also, these caps are rustproof, with a special rubber coating inside the cap to make them airtight.

Increasing consumption of beverages with the rising need for convenience is the two significant factors triggering the market for beverage packaging in Indian Market. The Indian beverage packaging market is exhibiting robust growth, with sustainable packaging being the need of the hour. The beverage industry, including bottled water, CSD, fruit drinks and flavored milk, are the largest user of caps and closures.

The beverage industry uses both metal and plastic caps & closures. Metal caps & closures include ROPP (Roll-on Pilfer-Proof) caps and crown closures in which major user segments include alcoholic beverages accounting for over 50%. ROPP caps are multi-color printed using an offset process and are broadly categorized as printed caps, top-embossed caps, knurl-embossed chamfered caps and side-embossed chamfered caps. China and Japan are witnessing growth in wine consumption. China is now the world's largest market for red wine and grape wine is recently becoming a trendy symbol of social status, luxury and healthy alcohol in the country.

Rising consumption of wine in China and Japan has uplifted the usage of different metallic caps in the region, such as ROPP metal caps and screw metal caps in the Asia-Pacific, compared to other types of packaging.

Competitive Landscape

The global metal caps and closures market is huge. It is becoming increasingly competitive due to the presence of major players such O.Berk Company LLC, Nippon Closures Co. Ltd, The Cary Company, Crown Holdings, Inc., Sonoco Products Company, Reynolds Packaging Group Ltd, Tapì Group, Guala Closures Group and Alcopack Group. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

Guala closures group

Overview:Guala Closures Group is a global leader in producing non-refillable and aluminum closures for spirits, wine, oil and vinegar, water and beverages. It operates on 5 continents through 29 production plants in 22 countries and a sales network covering over 100 countries. The company sold over 20 billion closures in 100 countries and has 4 research centers, 1 technological innovation center and 29 production plants with over 4700 employees. For more than 60 years, the Group has been creating an international culture that seeks to safeguard product quality and challenge the phenomenon of counterfeiting.

Product Portfolio:
• Luxury Closures: The company designs the product in a customizable way per the customer proposal plan; Gravitas is the potential patented material that brings the versatility of plastic and the luxury feel of metal to the product.

Key Development:
• Guala Closures S.p.A., a manufacturer of security closures for spirits and aluminum closures for wines and producer and distributor of aluminum closures for the beverage industry, has completed the acquisition of Closurelogic GmbH, a Germany-based manufacturer of aluminum closures.

Why Purchase the Report?
• To visualize the global metal caps and closures market segmentation based on material, product, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global metal caps and closures market by analyzing trends and co-development.
• Excel data sheet with numerous metal caps and closures market-level data points with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global metal caps and closures market report would provide approximately 58 tables, 62 figures and almost 325 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies