The Global Beverage Caps and Closures market was valued at USD 62.08?billion in 2019?and is expected to reach a value of USD 80.87?billion by 2025?at a CAGR of 4.54% over the forecast period 2020-2025.?
- The increasing demand for packaged beverages coupled with the technological advancements in packaging solutions is expected to aid the growth of the market over the forecast period.
- It was anticipated that the most established beverage categories such as milk and fruit juice are expected to offer sluggish growth opportunities, whereas, newer beverage categories including sports drinks, ready-to-drink tea and coffee, and other healthy beverage alternatives will increase the overall demand for beverage closures.
- Stringent Regulations on the Usage of Plastic Bottles will act as a factor which will restrain the growth of beverage caps and closures. The regulations by the government have a direct and adverse effect on the sales of caps and closures.
Scope of the Report
Caps and closures are essential for extending the shelf life and retaining taste, flavour, and texture of the contents and also play a critical role in driving the visual appeal, brand differentiation, and convenience in the ease to open, thus, making them imperative for packaging industry, which is serving as the driving factor for the market.
Plastic caps and closures use PET, PP, and PE as the primary raw materials for manufacturing.
Key Market Trends
Plastic is Expected to Experience a Significant Market Share
- Technology advancements in plastic packaging have resulted in innovations in product development in the beverage industry. With many companies investing significantly in R&D activities to come up with a unique and cost-effective product, the innovations in this space are increasing at a significant pace.
- For instance in April 2018, FIJI Water, United States one of the major premium imported bottled water brand, recently unveiled its new FIJI Water Sports Cap bottle featuring a slim and sleek design, especially targeting the sports enthusiasts.
- Moreover, Dow industries introduced a new range of PET resins portfolio for manufacturing of caps and closures. The Italian company, Imola has also come up with a new HD printing machine to print high-quality images at a fast rate on caps.
- Many other major companies such as Amcor, Ball Corp. are also following similar suite and are offering new and innovative final products. With innovations in the industry, the demand for products is also growing, thus driving the growth of caps and closures in the beverages industry around the globe.
Asia Pacific is Expected to Hold a Major Market Share
- The beverages industry in the Asia Pacific region has shown robust growth in the past decade, owing to rising disposable incomes and this trend is expected to follow over the forecast period, owing to changing consumer preferences, indicating an increasing prominence towards energy and nutritional drinks.
- Rapidly growing middle class and evolving workplace culture, are increasing the amount of alcohol consumed in the region. Statistics from the World Health Organization (WHO) reported that total pure alcohol consumption per capita amounted to 7.6 liters in 2015.
- This trend is further expected to increase over the forecast period, resulting in a higher production of alcohol, proportionately driving the demand for caps and closures in the APAC region especially in countries such as India, Taiwan.
- However, the vendor landscape of the market has been rendered primarily fragmented owing to the presence of a massive set of regional as well as international players.
The Beverage Caps and Closures Market is highly competitive and consists of significant major players. In terms of market share, few of the major players currently dominate the market. Major companies such as Amcor, Ball Corporation are focusing on ways of consolidating the market through strategic collaborations such as mergers and acquisitions in order to expand their product portfolios and geographical outreach and serve a larger consumer base.
- July 2018 - AptarGroup Inc. has a deal in place to acquire CSP Technologies Inc. a specialty plastic packaging maker, for USD 555 million.
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