Global Plastics Caps and Closures Market - 2023-2030

Global Plastics Caps and Closures Market - 2023-2030

Market Overview

Plastic 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 7.3% during the forecast period (2023-2030).

The global Plastic Caps and Closures market is highly competitive due to the presence of various small and large manufacturers in the market, competition among players in terms of price and the development of new products with high R&D investments to be competitive in the market.

The global plastic caps and closures market is not heavily controlled globally. However, some design requirements adhere to the standards set by organizations that promote packaging, food safety and the environment. To stop the growth of bacteria, mold, mildew, fungi, discoloration and odor, the Environmental Protection Agency (EPA) mandates that antimicrobial technology be integrated into plastic and fabrics used in food packaging.

Market Dynamics

The potential benefits of plastic caps over metal counterparts are major market drivers for the global plastics caps and closures market. However, highly volatile raw material prices could be a major market restraint.

Potential benefits of plastic caps over metal counterparts

Plastic caps and closures have evolved as the largest segment of most industries' global caps and closures ecosystem. Besides exemptions such as toxic chemicals, high-temperate industrial oils and other tough applications, plastic caps rapidly protrude into the space of metal closures. Low cost, versatility, easy availability, durability and flexibility are driving the adoption of plastic caps in food, beverage, pharmaceutical and other industries. The growing trend of e-commerce shopping is also influencing the use of plastic caps and closures.

Plastic caps and closures are widely used in toiletries to produce lotions, face creams, hair preparations products and perfumes due to the rising emphasis on health and hygiene. Several companies prefer plastic caps and closures due to their lower transportation cost, cost-effectiveness, durability, customizability and chemical stability. New product launches and product diversification shall positively impact the market. For instance, in March 2019, Aptar Beauty launched a new dispensing closure with 50% post-consumer recycled resin (PCR) to be used on Ecover washing-up liquid. It would ensure a leading position in the global transition to a circular economy and a sustainable future.

Highly volatile raw material prices

As the demand for caps and closures rises, the cost of raw materials also increases, affecting the profit and cost of manufacturing caps and closures. As a result, the adoption rates of these raw materials slow down in different applications.

In addition, major players such as Berry Global use plastic resins as raw materials. Polypropylene and polyethylene account for approximately 90% of the plastic resin pounds purchased. As published by the American market indices, the three-month simple average price per pound of polypropylene was 0.75 in 2018, 0.63 in 2019 and 0.53 in 2020. Hence, the fluctuations in raw material prices are expected to hinder the respective market’s growth.

COVID-19 Impact Analysis

Due to the lockdowns implemented in most nations due to the COVID-19 outbreak, the plastic caps and closures market has seen a dual impact on product demand. Due to uncertainty, people made impulsive purchases of groceries, necessities, handwashing solutions and hand sanitizers. The rising demand for hand sanitizers and handwashing liquids has benefited the plastic caps and closures sector. On the other hand, when COVID-19 spread quickly over the world, the price of raw materials like polypropylene increased due to the material's good PP characteristics and significant demand for fiber-grade PP for mask production. PP supplies remained comfortable in U.S. as overall consumption levels declined due to the economic contraction stemming from the coronavirus outbreak and subsequent containment measures. Moreover, there was possible supply chain disruption in the food and beverage segment as the suppliers are looking to increase the pharma-grade capacities to support the COVID-19 crisis.

With the COVID-19 outbreak wreaking havoc on the economy, countries globally seem to be moving away from single-use plastics. Additionally, supply chains are stretched to meet increased demand for single-use plastic packaging and medical supplies. Following the COVID-19 disruption, many countries and regions, such as the Tamil Nadu government in India, suspended the ban on single-use plastic bottles and bags in retail trade. Imports shipments were delayed due to the coronavirus outbreak and domestic suppliers planned some scheduled maintenance.

However, during the pandemic's hard-hit period, the production disruptions do not pose a considerable impact due to unaffected demand from a few end-use industries like pharma, food, cosmetics and toiletries. But the market plunged for the beverage and automotive sectors. Also, the available stocks and upsurge in domestic production offset the supply shortages caused by the import restrictions, ensuring continuous availability to the various end-users. However, this category is classified as an essential business. Therefore, there was no temporary shutdown or plant closures of plastic caps and closures facilities due to the COVID-19 outbreak. Key global players like Amcor, Berry global, Bericap and GCS continue to run their businesses with necessary precautionary measures to ensure their employees' safety.

Segment Analysis

The global plastics caps and closures market is classified based on material, product, end-user and region.

Growing R&D investments and increasing industrial applications of plastics caps and closures

Threaded caps can be a good closure for various packaging options like bottles or Mason jars. They can help preserve liquids such as beverages and oils or dry goods such as food products and pharmaceuticals. The caps come in various sizes and colors and are typically made from plastics made of HDPE, PP and others. All the CSDs and drinking water use threaded caps because of their high seal ability. Major factors, like innovation in caps and closure design and technology, highly impact the market of threaded plastic caps and closures.

Moreover, the market is expected to grow because newer beverage categories, including ready-to-drink tea and coffee, sports drinks and other healthy beverage alternatives, are expected to drive the overall demand in the threaded plastic caps and closures market. The higher availability of raw materials such as resins and advanced machinery is also expected to positively influence the demand for threaded plastic caps and closures in the global market.

Geographical Analysis

Asia-pacific dominates the regional segment of the global plastics caps and closures market due to the presence of manufacturing companies, growing industrialization and rising demand for heavy-duty corrugated boxes

The primary drivers of market expansion in Asia-Pacific include rising demand for bottled water, rising disposable incomes, rising consumption of ready-to-drink beverages and greater resin and equipment availability. The growth prospects of bottled water in Asia-Pacific will continue to be driven by the rising demand from health-conscious consumers for convenient, safe, healthy and refreshing drinks. India and Japan are the next-largest consumers of bottled water after China.

Due to the lockdowns implemented in most nations due to the COVID-19 outbreak, the plastic caps and closures market has seen a dual impact on product demand. Due to uncertainty, people made impulsive purchases of groceries, necessities, handwashing solutions and hand sanitizers. The rising demand for hand sanitizers and handwashing liquids has benefited the plastic caps and closures sector. On the other hand, when COVID-19 spread quickly over the world, the price of raw materials like polypropylene increased due to the material's good PP characteristics and significant demand for fiber-grade PP for mask production.

Competitive Landscape

In terms of global and local producer numbers and strengths, the global plastics caps and closures market is extremely competitive due to the presence of major players such as Phoenix Closures, Amcor Ltd., Aptar Group Inc., BERICAP GmbH & Co. KG, Berry Global, Inc, Crown Holdings Inc., Guala Closures Group, Silgan Holdings Inc., O.Berk Company, LLC, Caps & Closures Pty Ltd, The Carry Company, Reynolds Consumer Products Inc., Nippon Closures Co., Ltd., Sonoco Products Company, Alcopack Group and Tapi Group. The market is fragmented, and pivotal stakeholders use tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition in their respective markets.

Guala Closures Group

Overview: Guala Closures Group is a worldwide 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.

Product Portfolio:
• Safety closures: Safety closures reduce the risk of counterfeiting by preventing the “refilling” or replacement of the product.

Key Development:
• In December 2020, Guala Closures Group launched a new range of sustainable closures under the Blossom Umbrella brand. The closures can be used for wine, spirits, water, beverages and olive oil. The closures are manufactured from different materials and undergo continuous development to meet future clients’ needs and local regulatory requirements.

Why Purchase the Report?
• To visualize the global plastics caps and closures market segmentation based on material, product, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global plastics caps and closures market by analyzing trends and co-development.
• Excel data sheet with numerous data points of plastics caps and closures market-level 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 plastics caps and closures market report would provide approximately 79 tables, 73 figures and almost 194 pages.

End-User Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies