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The metal caps and closures market was valued at USD 1.03?billion in 2019, and it is expected to reach a value of USD 1.12?billion by 2025?at a CAGR of 1.77% over the forecast period, 2020-2025. Metal caps and closures provide rigidity and stability while portraying a superior product image to the consumers in the market.
- Moreover, the growth in international trade of food & beverage can prominently attribute to the rising demand for effective packaging solutions, such as metal caps and closures. These solutions ensure the longer shelf life of food and beverage products.
- Further, the growing use of child-resistant and tamper-evident metal caps and closures has gained huge popularity in the market which has encouraged the manufacturers to produce superior quality metal caps and closures.
- However, the presence of other closure systems made of plastics, wood, etc. are expected to act as a restraint and challenge the growth of the metal closures market over the forecast period.
Scope of the Report
The metal closures and caps deliver eye-catching appeal and easy-open convenience coupled with extending shelf life of the product. These product safety features and convenient properties of the metal closures are expected to have a positive impact on the market. Further, the beverage industry is the largest end-use segment and accounts for more than 50% of the overall market. North America has the largest market which is favored by increasing demand for bottled water and beverage segments.
Key Market Trends
Wine Industry Offers Potential Growth
- Wine consumption among consumers is driven by the health and wellness trend. Today’s consumers are aware of the origin and production methods of wine, thus increasingly favoring organic wines as a symbol of higher quality. Thus the packaging of organic wines requires metal caps because these metal caps with plastic interiors provide a very tight seal over the whole mouth and neck of the bottle keeping the freshness intact.
- Further, increasing demand for wine among the millennials and for them, it is very easy to cap a wine bottle with a screw metal cap because it can achieve a tight seal that keeps out oxygen for a long time. Removing and reclosing a metal screw cap is also easy.
- According to United Nations of Fine Wines, Veganism, one of the fastest-growing wine trends and is also expected to be reflected in wine production, leading to more vegan-friendly wines which will require the metal cap closure because it is least reactive in nature and this will keep the flavor and aroma of wine sealed.
- Therefore, the above factors are expected to boost the wine industry which in return will help in booming the metal caps and closures market.
Asia- Pacific to Witness the Fastest Growth
- Asia-Pacific is expected to witness the fastest growth because of the presence of two highly populated countries i.e. China and India. In these two countries, the increase in disposable income will act as a supplement for the growth of the metal caps and closures market.
- Further, according to the International Wine and Spirits Record (IWSR), China is expected to increase its wine imports by 8 % in 2019. The estimated rise is seen as a result of the increasing number of young consumers choosing wine over baijiu and other alcoholic beverages and older consumers switching to wine for its perceived health benefits. Thus the increase in wine consumption will result in a huge opportunity for metal caps and closures market because of the benefits provided by metal caps and closure.
- Moreover, with the vast rise in demand for packaged foods and beverages and the critical role played by caps and closures in keeping packaged consumables fresh for extended periods are likely to boost the market in these regions.
The metal caps and closures market is highly fragmented and competitive due to the presence of international vendors. Some of the key players of this market are Crown Holdings, O.Berk Company, Reynolds Packaging Group Ltd, etc amongst others. Intense competition prevails in the market in terms of product differentiation, portfolio, and pricing. The rising demand for value-added closures and tamper resistance properties will augment the usage of metal caps and closure in the beverages segment.
- April 2019 - Tap? and Thinfilm develop smart closures tackled counterfeiting in the wine and spirits industry. The OpenSense solution used detects when a closure seal was broken and alerts the consumer that the container or bottle may have been tampered with.
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