Caps and Closures Market Forecasts from 2023 to 2028

The caps and closures market is expected to grow at a compound annual growth rate of 5.24% over the analysed period to reach a market size of US$86.736 billion by 2028 from US$60.812 billion in 2021.

The demand for caps and closures is growing due to the rising food consumption and growing worries about the safety and quality of products, there is a greater need for caps and closures. Due to the growing packaged food and consumer goods markets, the targeted market is also boosting. As a result, there is an increasing demand for novel packaging materials that can protect from harsh environments without lowering the quality of the product.

Growth Drivers of the global caps and closures market

The trend in health and wellness is shifting towards preventative healthcare, which is fuelling demand for FMCG items that promote healthier lifestyles. The global market for caps and closures is expected to develop because of rising beverage consumption and inventive packaging techniques.

Restrain factors.

However, the market's growth is being constrained by factors like an increase in the usage of packaging without closures, like pouches and blister packages. Additionally, fluctuating raw material prices limit market expansion. Volatile costs for raw materials used in the production of caps and closures are a hindrance to the market's overall expansion.

Rising demand for packaged beverages

Beverage packaging is one of the most important sectors for the caps and closures market. The shelf life of beverages is increased while maintaining their flavour and texture using beverage packaging. Pouches and cartons are two common packaging options used by the beverage packaging business. The market for premium caps in the beverage industry is driven by the need for cutting-edge differentiated closures from major beverage firms throughout the world.

Further, the need for tamper-evident caps and closures is driven by the rise in customer demand for bottled water during the forecast period. The rise of bottled water is being driven by changes in lifestyle and per capita consumption. Sales of premium bottled water have risen because of consumers' rising income levels which is increasing the demand for caps and closures market.

Differentiation in closures

The International Bottled Water Association claims that a significant cause of the premiumization of bottled water is the increase in the number of high-net-worth individuals (HNWI). For instance, the new one-piece 55 mm KS2 plastic closure for three and five-gallon home and office delivery bottled water was introduced by Silgan Closures in July 2020. The closure differs from rival water bottle closures by including several innovative features. The closure has a pierceable shell design that almost eliminates leakage and is made of a proprietary resin mixture that resists cracking. To assure the safety of the product, the closure additionally includes a tamper-evident band and a flow-in closure liner for an improved bottle seal.

The United States in North America is an Expected Dominant Market

The growth of the country is primarily attributed to the rapid demand for caps and closure from various Industries such as pharmaceuticals, food, alcoholic & non-alcoholic drinks, and cosmetics among others. Furthermore, rising demand for caps and closure from packaged beverages & related stuff is a major factor promoting the growth in the USA market.

In line with the evolving market demands, numerous players are scaling up their operations to meet emerging requirements and offer improved services and solutions. Notable developments from the market include collaboration among major players such as Amcor came into collaboration with MGJ to develop IMPRESSIONS, advanced liner technology with unique PE-PP formed-based liners as well as sealing solutions for caps in different designs.

Furthermore, the extensive applications of caps & closures market in the food & beverage sector with different companies involved in the processing of raw materials, packaging products & distribution require the use of caps for packaged food, alcoholic & non-alcoholic drinks among others. Also, increasing demand for bottled water is also a crucial factor that will determine the growth of the market till the forecast period.

According to the findings of the Beverage Marketing Corporation, in the USA around 15 billion gallons of bottled water were consumed in 2020 which is 4.7% more than the consumption in the year 2019. The growth of retail sales was also more than 4% in the year 2020 for bottled water thereby promoting the market growth for caps & closure in the US market. According to the International bottled water association, the increasing population of high-net-worth Individuals in developed countries such as the US will become the main factor promoting the growth & consumption of bottled water. This will eventually lead to growth in the caps & closure market.

Key Developments

• In 2021, Crown Holdings, Inc introduced a range of innovative caps & closures in its product packaging portfolio. This will include metal and plastic closures among others.

Segmentation:

By Type

• Caps
• Closures
• Corks
• Stoppers
• Cans
• Others

By Raw Material

• Plastic
• Metal
• Others

By Application

• Food
• Beverages
• Cosmetics
• Pharmaceuticals
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others