Vietnam Plastic Caps And Closures - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Vietnam Plastic Caps And Closures - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Vietnam Plastic Caps And Closures Market size is estimated at USD 2.46 billion in 2024, and is expected to reach USD 2.88 billion by 2029, growing at a CAGR of 3.20% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 12.78 billion units in 2024 to 14.88 billion units by 2029, at a CAGR of 3.09% during the forecast period (2024-2029).

Key Highlights

• The plastic industry in Vietnam is rapidly evolving, positioning itself as a dynamic sector within the economy. Several factors contribute to its robust growth, notably the vast and promising market for plastic products. These products find extensive applications in packaging, construction, and the manufacturing of household appliances, fueling their demand across Vietnam.
• Vietnam's food manufacturing sector is pivoting from its historical reliance on exports to a more pronounced emphasis on the domestic market. In 2023, Vietnam's food service and accommodation industry surged by 14.7%, a notable uptick from the previous year, buoyed by a rebound in the tourism sector and a rise in both international and domestic travelers, which augmented the market’s growth.
• Rapid urbanization, coupled with a growing youth and middle-class demographic, is steering a trend toward health-conscious food and beverages that are sugar-free and have added health benefits like vitamins and antioxidants. This transition spurs an increased appetite for premium products, especially those with personalized caps and closures.
• The market for caps and closures in Vietnam is witnessing a surge, fueled by the rising demand for tailored solutions in various industries. Bericap Holding GmbH, a US firm with operations in Vietnam, is at the forefront, crafting unique designs and packaging, bolstering brand recognition, and driving up demand.
• Environmental concerns are driving a shift away from plastic caps, which are seen as contributors to pollution, harming wildlife and their habitats. This has led to a growing preference for metal caps, typically crafted from steel or aluminum. The adoption of plastic alternatives for caps and closures poses a potential threat to the market's growth in Vietnam.

Vietnam Plastic Caps and Closures Market Trends

Polyethylene (PE) is Estimated to Have the Largest Market Share

• Polyethylene (PE) stands out as a favored choice in Vietnam in the packaging realm owing to its chemical resistance, affordability, and resilience to environmental challenges. This versatile plastic, derived from petroleum polymers, is primarily categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE). HDPE and LDPE, the primary variants, dominate the landscape of caps and closures.
• Growing consumer spending on personal care and cosmetic products for makeup, skincare, and haircare in Vietnam has increased the use of Polyethylene (PE) or Polypropylene (PP) caps and closures. In addition, the increasing e-commerce traction in Vietnam is bolstering the sales of products, including serums, moisturizers, creams, and sprays for both men and women, augmenting the market’s growth.
• According to data from the International Trade Administration, Vietnam's internet economy is experiencing a surge, propelled by rapid internet and smartphone adoption. In 2023, Vietnam boasted approximately 69 million smartphone users, projected to climb to 82 million by 2025. This uptrend is poised to bolster the already robust e-commerce sector.
• The market for plastic caps, closures, and lids designed to endure extreme temperatures and preserve food freshness is on the rise. Vietnam's food industry, bolstered by a robust manufacturing sector, is increasingly favoring PE caps and closures. USDA data reveals that Vietnam's food manufacturing industry surged from USD 69.6 billion in 2022 to USD 73.8 billion in 2023.

Beverage Segment Expected to Dominate the Market

• With international tourist arrivals on the rise, Vietnam's beverage market, both alcoholic and non-alcoholic, is witnessing a significant upswing. In 2023, data from the United States Department of Agriculture (USDA) revealed a remarkable surge in international visitors to Vietnam, peaking at nearly 12.6 million, a figure that more than tripled 2022's numbers.
• Vietnam boasts a robust retail landscape, with numerous outlets and supermarkets offering a diverse array of products spanning food, beverages, and personal care. Notably, beverage sales, including carbonated soft drinks and juices, are on the ascent. In 2023, the USDA reported that Vietnam's total retail sales hit USD 198 billion, a 4.76% increase from the previous year.
• Key players in Vietnam's caps and closures manufacturing, like Bericap Holding GmbH, are honing their focus on the beverage sector. Their products, designed for highly pressurized liquids and engineered to withstand temperature fluctuations during transport, are gaining traction. Bericap's tailored closure solutions, crafted from materials like PP, PE, and PET, resonate well with the market, further fueling demand.
• As the demand for non-alcoholic beverages, including soft drinks, energy drinks, and juices, surges in Vietnam, so does the country's import. Notably, the United States is a significant contributor to this trend. In 2023, Vietnam's beverage imports, as per the USDA, hit a value of USD 103.22 million, marking a substantial 55.59% increase from the preceding year.

Vietnam Plastic Caps and Closures Industry Overview

The Vietnam plastic caps and closures market is consolidated with domestic players such as Duy Tan Plastic Company and international players such as Bericap Holding GmbH, Tetra Pak, and Sonoco Products Company. To solidify their footprint in the market, the players focus on new product development, partnerships, mergers and acquisitions, and collaborations.

• July 2024: Duy Tan Plastic Company, a Vietnam-based company, produced a sustainable tethered cap made with HDPE material. Unlike traditional detachable bottle caps, this bottle cap is securely affixed to the bottle, ensuring the water bottle remains sealed. This safeguards the product inside and helps preserve the water's taste while reducing the chances of plastic waste, which helps curb environmental pollution.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support