North America Caps and Closure Market Outlook, 2029

With innovative designs and sustainable solutions, the North American caps and closures market redefines packaging standards in line with smarter, more responsible consumer products. Improving technology is changing the face of the North American caps and closures market by bringing into light a new opportunity for product functionality and design. Smart packaging innovations, including incorporation of QR codes and RFID tags, among others, make interactions between consumers and their packaging smart.

These technologies thus considerably contribute to information on authenticity, usage, and recycling of a product and, hence, add value beyond traditional packaging Customization and personalization are definitely inching to the fore in the North American caps and closures market. To ensure differentiation in an overcrowded marketplace, offering unique and customized packaging solutions has become important for differentiating brands. Advances in digital printing and design technologies allow manufacturers to develop personalized closures that mirror brand identity and turn out to be attractive to individual consumer preferences.

Government policies bear a high impact on the caps and closures market in North America. In the U.S. the EPA has regulations regarding plastic waste reduction and recycling; the FDA, regarding the safety of food and pharmaceutical packaging. Canada's CEPA requires businesses to ensure sustainable waste management, while Health Canada is responsible for ensuring the safety of packaging. In Mexico, laws related to waste and the environment, like the Federal Law for Waste Management, or those related to labeling, like NOM-051-SCFI-2010, help frame market practices and product innovation. In March 2024, Beyond Plastic introduced one of the first biodegradable plastic bottle caps to enter the market. The closure is made from polyhydroxyalkanoate (PHA), a biopolymer created using bacteria fermentation.

According to the research report "North America Caps and Closures Market Overview, 2029," the North America Caps and Closures market is expected to reach a market size of more than USD 29 Billion by 2029.The caps and closures market is very competitive, with multiple players competing to increase their market share. Competition induces price sensitivity since companies have to be very cost-effective while competing with regard to the price of their products without compromising on quality. Striking a balance between meeting consumers' calls to deliver at affordable prices and investing in innovative and sustainable packaging solutions can indeed be quite challenging.

The manufacturers have to follow regulations from various agencies, such as the FDA on food and drug packaging and the EPA on environmental factors. That means ensuring the safety of materials used for food and drug contact and following practices that reduce waste as far as possible during packaging. This is getting increasingly complicated and costly to the manufacturing process, as plastic pollution and new standards regarding the environment become paramount. Sustainability has become the catch-all, significant driver of growth in the caps and closures market across North America. Regulatory bodies and consumers are asking for eco-friendly solutions as far as packaging is concerned. Therefore, finding sustainable materials and processes has been the prime focus of the manufacturers.

For instance, in February 2022, Starbucks Coffee Company collaborated with PepsiCo to launch an energy drink known as Baya. The energy drink is available in three flavors, namely pineapple passionfruit, raspberry lime, and mango guava.

Market Drivers

• Growing Beverage Industry: The non-alcoholic beverage market in North America is expanding rapidly, with a significant increase in the consumption of bottled water, juices, and RTD beverages. This trend is fueled by health-conscious consumers seeking convenient and safer packaging solutions. Innovative caps and closures, such as those with tamper-evident features, resealability, and ergonomic designs, are in high demand to enhance product safety and user experience, thereby driving the market.
• Technological Advancements: The North American caps and closures market benefits from ongoing technological advancements. Innovations such as smart closures equipped with QR codes, NFC tags, and tamper-evident mechanisms cater to consumer safety and regulatory compliance. These technologies not only enhance the functionality and safety of packaging but a provide opportunities for brand engagement and anti-counterfeiting measures, driving market growth.

Market Challenges

• Environmental Regulations: Stringent environmental regulations in North America mandate the reduction of plastic waste and the adoption of sustainable packaging practices. Compliance with these regulations requires significant investments in eco-friendly materials, recycling technologies, and sustainable production processes. This creates financial and operational challenges for manufacturers, as they strive to balance sustainability goals with cost efficiency.
• Raw Material Price Volatility: The caps and closures industry in North America faces challenges due to the volatility in raw material prices, particularly plastics and metals. Fluctuating costs impact production expenses and profitability. Manufacturers must navigate these uncertainties while maintaining competitive pricing and quality, which can be challenging in a market driven by cost-conscious consumers and stringent quality standards.

Market Trends

• Sustainability Initiatives: The North American market is witnessing a strong push towards sustainability. Consumers and regulatory bodies are demanding eco-friendly packaging solutions, leading manufacturers to invest in recyclable and biodegradable materials. Initiatives such as closed-loop recycling systems and the use of bio-based plastics are gaining traction, aligning with the broader trend of environmental responsibility and corporate sustainability.
• Customization and Personalization: Personalized packaging is becoming a significant trend in North America. Brands are increasingly offering customized caps and closures to differentiate their products and enhance consumer engagement. This trend is particularly prevalent in the beverage and personal care sectors, where unique packaging designs can strengthen brand identity and appeal to consumer preferences for personalized experiences.

Plastic leads the caps and closures market in North America, mainly because of the highly versatile and cost-effective nature of plastics.

Plastic caps and closures find a place as a preferable choice for a diversified product category, such as beverages, food, pharmaceuticals, cosmetics, among others, while keeping the production cost low. This versatility can clearly be illustrated with many varieties of plastics used today, like PP, HDPE, and PET, with quite different properties, setting them all the more finely for special needs in products.

For instance, PP has very good resistance to chemicals and is very excellent in the packaging of aggressive products; HDPE offers excellent resistance to moisture, while PET offers clarity and barrier properties suitable for carbonated drinks. Besides, plastic caps and closures offer very high design flexibility, which makes the creation of innovative shapes, sizes, and functionalities possible, thus facilitating brand differentiation and consumer appeal. They can be easily molded into screw caps, Snap-On lids, dispensing closures, child-resistant caps, etc., thus offering convenience and safety to consumers.

Plastics allow for light weighting, thereby reducing the overall weight of packaging and providing savings in transportation costs and lowering carbon emissions. The tighter seals, better torque retentively, and improved leakage resistance are among the features that have evolved with plastic manufacturing technologies. These factors ensure fresh products will not become spoiled, wasted, or contaminated at an unnecessarily accelerated pace, thus enabling them to last longer on the shelf.

Plastic bottle caps and closures can be bulk injection or compression molded quickly and relatively cheaply; thus, producers find them very attractive. The growing concerns about plastic waste, the industry are actively involved in investing in sustainable solutions using recyclable material and eco-friendly designs. This includes a trend towards post-consumer recycled content and the development of biodegradable plastics that will make a difference to the environment without losing the real benefits that plastic caps and closures bring.

The industry has easily adapted quickly to the changing consumer needs with respect to convenience, safety, and sustainability, which places food and beverage as the biggest end-user in the North American caps and closures market.
Against the backdrop of the fast pace of life, the trend has gone toward those products with ease of use, portability, and extended shelf life. This shift has been very quickly addressed by the food and beverage industry through designing a broad range of packaged products that answer to on-the-go consumption and busy lifestyle demands. As such, these products generally require new caps and closures that ensure freshness, prevent spills, allow for ease of opening and reclosure.

For instance, on the rise are single-serve beverages and snacks that have fueled the demand for resealable and tamper-evident closures. The growing awareness of food safety has increased the preference for packaging solutions that ensure not only the integrity of a product but provide tangible proof of tampering. This increases the demand for advanced caps and closures. The desire of industry players for more sustainability within the process has been another major factor, as manufacturers channel their resources into closure options that are eco-friendly and, therefore, resonate consumer needs through environmentally responsible packaging.

This has created an impetus for closures either made from recycled materials or those that are easy to recycle. Distinct closure designs can help differentiate products from competition-laden store shelves, thereby building brand identity. It has lagged behind none in adopting any new technology, from smart caps with QR codes for product information or closures having oxygen-scavenging properties to extend the shelf life of products. In this industry, caps and closures have further diversified into screw caps, snap-on lids, dispensing closures, child-resistant caps, among others, which impart ability to manufacturers to cater to varied product needs and consumer preferences. Further, the food and beverage industry's sensitivity to demographic changes

For instance, a greying society needing easier opening of packages but, simultaneously, requiring secure ones has strengthened its position in the caps and closures market.

In the case of screw enclosures, their user-friendly design improves the convenience and functionality over a multitude of applications, hence enabling screw enclosures to assume a leading position in the North American caps and closures market.
There is ease of usage very popularly associated with screw closures. An easy to open and close secure seal, therefore, becomes very attractive to consumers. This user-friendly aspect is very necessary in the fast-moving setting of contemporary consumerism. It might be assumed that any access to the product quickly will easily influence the purchasing decisions. Besides, screw closures are versatile, and therefore, with a little modification, they can be tailored to different kinds of containers, including bottles, jars, tubes, etc. thus making them fit for a number of industries like food and beverage, pharmaceuticals, personal care products, etc.

With the beverage industry growing and, in particular, the demand for ready-to-drink beverages, there is increasing growth in the use of screw closures. The increasing popularity of bottled water, energy drinks, and sports beverages has created a huge market for packaging solutions that assure product integrity while being user-friendly. It seals a product airtight and prevents leakage; this is important not only for manufacturers but for consumers. The screw closures segment is enhanced by sustainability trends, related to growing consumer sensitivity towards due regard for nature.

Manufacturers of screw closures are engaged in developing new designs and recyclable, sustainable material-based closures. This shift meets the demand not only of the consumer but of regulatory pressures that require much more sustainable solutions for packaging. Companies are continuing to invest due amounts in research and development for creating new screw closure designs that are impacting the environment less and are highly cautious about maximum performance.

A well-developed and matured manufacturing industry in the United States is one of the prime reasons for the country's dominance in the market for caps and closures in North America.
The United States has an advanced and diversified industrial sector consisting of extensive industries, such as foods and beverages, pharmaceuticals, cosmetics, etc., playing the role of major applicators for caps and closures. The need for caps and closures is driven by the huge consumption for packaged goods of the final consumer within this country, having a high standard of living, supported by a strong economy.

Besides, there is well-developed infrastructure that facilitates an efficient process of manufacturers' products to the market because of transportation and distribution. The US is home to numerous of the world's largest caps and closures manufacturers, including Crown Holdings, Silgan Holdings, and AptarGroup, which all hold significant global market shares. The firms have invested a lot in research and development, allowing them to identify new products and technologies that fit the current and future needs of consumers and manufacturers.

For instance, the caps and closures have been developed from readily upcyclable materials such as metal and plastic, hence riding the wave of sustainability and eco-friendliness. Besides, the US is characterized by a very friendly business environment, although the burden from regulations is comparatively low, the financial system is very developed, with easier access to capital for financing investments in new technologies and products.

The strong intellectual property laws protect the companies' innovations, thereby encouraging investment in research and development. The US caps and closures market is the largest in North America and, therefore, enjoys the majority of the market share in the region by size. The market is projected to grow because of increasing demand from the food and beverages, pharmaceuticals, and cosmetics companies. In addition, many export their caps and closures to different countries of the world.

• In May 2024, AlpekPolyester USA LLC introduced a new PET resin for bottle caps at NPE2024. This material is marketed under the brand CAPETall, and it meets all the production needs of bottle caps. The material is expected to be available in 2025. The company stated that CaPETall is a 100% PET product that improves post-consumer PET bottle recycling and the PET circular economy.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Caps and Closure market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Raw Material

• Plastic
• Metals
• Others (Glass, wood, Rubber & Elastomers and paperboads)

By End user Industries

• Food & beverages
• Cosmetics and Toiletries
• Pharmaceutical & health care
• Others (chemical and automotive)

By Types

• Screw Closures
• Easy-Open Can End
• Metal Lug Closures
• Dispensing Caps
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Caps and Closure industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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