Colombia Plastic Caps and Closures Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Colombia Plastic Caps and Closures Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Colombia Plastic Caps And Closures Market size is estimated at USD 360.20 million in 2024, and is expected to reach USD 418.30 million by 2029, growing at a CAGR of 3.04% during the forecast period (2024-2029). In terms of production volume, the market is expected to grow from 10.56 billion units in 2024 to 12.14 billion units by 2029, at a CAGR of 2.83% during the forecast period (2024-2029).

Plastic caps and closures are pivotal in packaging and safeguarding products from dust, spills, and contamination. They are durable, recyclable, and economical, making them an ideal choice for manufacturers. In Colombia, the food and beverage industry heavily relies on ancillary packaging solutions, such as plastic caps and closures, to extend the product shelf life, especially with the rising demand for packaged beverages.

Key Highlights

• Colombia One, a digital news publisher, reported an employment rate of 57.4% as of December 2023. With a rising employment rate, a growing demand for packaged beverages and food is growing, especially among busy lifestyles. Consequently, this surge in demand is set to boost the need for caps and closures nationwide. However, despite these positive trends, a recent hike in the value-added tax, from 16% to 19%, could dampen consumption levels in the short term for price-sensitive product categories.
• The surge in urbanization, coupled with a growing tourism sector, is amplifying the demand for raw materials and ingredients, catering to the tastes of locals and international visitors. As Colombian cities embrace heightened urbanization, a parallel surge in processed food consumption and evolving consumer preferences is evident. Notably, this trend creates a fertile ground for expanding health foods and organic products, buoyed by the government's robust backing of healthy living initiatives. Such factors are expected to push the country's need for processed and healthy beverages, increasing the opportunities for manufacturers of caps and closures.
• The plastic caps and closures market in the food and beverage industry is set to grow, driven by increasing demands for packaged food, bottled water, and non-alcoholic beverages. The surge in beverage sales is fueled by consumer preferences for high-quality, disease-free drinking water and the convenience and portability of bottled water.
• The Colombian caps and closures market encompasses a range of offerings, from different types of beverage bottles, such as natural and carbonated, to flavored, energizing, and functional water (enhanced with vitamins and minerals). This segment's success directly responds to the surging demand for more refined products, mirroring consumers' increasingly discerning palates.
• Plastic is one of the significant pollutants that results in environmental degradation, and awareness regarding its effects has been growing. Brand owners need help with environmental packaging regulations to diversify, hindering their ability to maintain consistent product designs. The country's government is spearheading public drives and initiatives to heighten awareness. The production and consumption of plastics, which are reliant on substantial fossil fuel usage, have been notably detrimental to the environment and climate. Consequently, there has been a marked impact on the consumption of plastic packaging in recent years.

Colombia Plastic Caps and Closures Market Trends

The Polyethylene Terephthalate Segment is Expected to Witness Significant Growth

• The increasing emphasis on recycled PET usage drives innovations in the design and manufacturing of PET caps and closures. Companies are developing solutions to maintain the quality and functionality of caps while incorporating recycled materials, which may lead to advancements in product technology.
• In December 2023, Postobón and Enka, firms committed to PET recycling in Colombia and supporting the circular economy, inked a decade-long deal. The agreement focuses on the supply of EKO PET resin crafted from post-consumer PET bottles.
• The large volume of plastic used in packaging, particularly in the food and beverage sector, creates a substantial demand for PET caps and closures. As consumers and companies increasingly focus on sustainability, there will be growing interest in packaging solutions incorporating recycled PET, boosting the market for PET caps and closures made from recycled materials.
• According to Zero Waste Europe in November 2023, Colombia produces approximately 1.4 million tons of plastic annually, of which 56% (about 700,500 tons) is packaging, bottles, containers, and packaging materials from various sectors. Of this amount, only 3% is effectively recycled.
• The food and beverage industry accounts for 40% of all packaging usage, ultimately reaching consumers. This situation highlights the significant gap between the country's plastic production and recycling efforts.
• Key players in the Colombian PET caps and closures market, like Amcor Group GmbH, predominantly cater to liquid beverages, including premium wines and spirits. These offerings come with a plethora of printing and texture options. Moreover, Amcor specializes in threaded caps of varying diameters tailored for sectors like healthcare, personal care, and home care, fueling market expansion.
• Colombia's prowess in plastic packaging is evident in its exports of caps, closures, and lids to nations like the United States, Ecuador, Peru, Mexico, and Chile, bolstering its market standing. Notably, the International Trade Centre (ITC) data revealed that Colombia's plastic caps and closures exports hit a notable USD 195.31 million in 2023.

The Personal Care and Cosmetics Industry to be the Largest End User

• Colombia's cosmetics sector is rapidly gaining momentum in Latin America, propelled by a surging consumer appetite for color cosmetics. Colombia, alongside Peru, Mexico, and Chile, emerges as a frontrunner in beauty product expenditure within the region. The rising beauty sector in Colombia is attributable to growing consumer spending and urbanization, which are accelerating the market’s growth.
• In Colombia, the market for personal care products, including creams, moisturizers, and makeup items, is witnessing a surge in demand for child-resistant caps and modern, aesthetic closures. This trend is significantly driving the market’s growth.
• Key players in the Colombian plastic caps and closures sector, such as Berry Global Inc. and Sonoco Products Company, are focusing on producing sustainable options. These include caps and closures crafted from recyclable materials like PET, PP, and PE, available in a spectrum of sizes and colors. Moreover, they are introducing more compact and user-friendly packaging, bolstering market expansion.
• Caps and closures are vital to a brand's aesthetics, serving as a primary touchpoint for consumers interacting with fragrances, beauty, or personal care items. They improve the visual appeal and safeguard the product, expanding its shelf life, shielding it from contaminants, and regulating oxygen levels. Dispensing closures in personal care and cosmetics are engineered for precise dosing, minimizing wastage, and assuring accurate application. Factors such as the rising demand for grooming products, the surge in online beauty product marketing, and the luxury beauty sector's innovations entice consumers toward premium, higher-priced offerings.
• The demand for plastic caps and closures is further underscored by Colombia's stature as a prominent exporter of beauty and makeup goods. These components are predominantly utilized in skincare, lotion, and cosmetic containers. Notably, data from the International Trade Centre (ITC) reveals that Colombia's cosmetic exports reached a value of USD 232.90 million in 2023, marking a notable 24.06% increase from 2022.

Colombia Plastic Caps and Closures Industry Overview

The Colombian plastic caps and closures market is fragmented with the presence of key players like Berry Global Inc., Amcor Group GmbH, Simex SAS, Weener Plastic Group BV, and Guala Closures SpA. The players in the market focus on new product development, partnerships, mergers and acquisitions, and collaborations to solidify their footprint in the Colombian market.

• January 2024: Tetra Pak, a Swedish packaging company with operations in Colombia, bolstered its sustainable product line in the European market. Teaming up with dairy giant Valio, Tetra Pak introduced a novel tethered cap crafted from 30% certified recycled polymers. This strategic move underscored Tetra Pak's commitment to sustainability and advances its goal of fostering a circular economy.

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