SAN FRANCISCO, July 5, 2021 /PRNewswire/ -- The global caps and closures market size is expected to surpass USD 143,699.6 million by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.0% over the forecast period. The market is projected to be driven by the growth in the food & beverage industry across the globe, contributing to an increased usage of packaging products.
Rising counterfeiting activities in the alcoholic beverages market are likely to boost demand for anti-tamper or tamper-evident closure. For instance, Everledger launched a new line of anti-tamper closures for wine and spirit bottles in April 2020, wherein the bottle cap is provided with Near Field Communication (NFC)-powered tamper detection label. The label, in turn, will allow the beverage manufacturer to track the bottle during shipping. This is anticipated to fuel the need for tamper-evident bottle closures of alcoholic beverages.
Key Insights & Findings:
The metal segment is projected to grow at a CAGR of 4.8% from 2021 to 2030 due to rising usage of metals on account of higher durability and sustainability than plastic
As per CAN manufactures Institutes' 2019-20 Annual Report, total metal cans shipped from the U.S. were 125,123 million in 2018 that increased to 127,042 million in 2019 that are used for various food and beverage products
Furthermore, the COVID-19 pandemic is expected to increase the demand for energy-boosting drinks, protein shakes, and dietary supplements that promote health and improve the immune system
This, in turn, is expected to fuel demand for food-grade packaging solutions including caps & closures in the near future
Companies in the caps & closures industry are adopting various strategies, such as capacity expansion and strengthening market presence through mergers & acquisitions
For instance, in June 2020, Silgan acquired Albéa Group's 10 manufacturing facilities under its dispensing operations. This acquisition is expected to aid Silgan to expand its closures franchise along with dispensing systems operations
Peanut butter, jellies, ketchup, and other spreadable & condiments are widely used in households and foodservice restaurants in countries, such as the U.S and Canada. As per YouGov America's survey result published in August 2019, about 66% of the surveyed individuals 'really like' or 'somewhat like' the peanut butter & jelly sandwich. This, in turn, is expected to boost demand for dispensing caps & screw closures used for sealing containers of various spreadable items.
Closures play an important part in protecting canned food from moisture and dust particles. As per data released by the U.S. Department of Agriculture, about 31.4 pounds of tomatoes were available per person for consumption, after adjusting for losses, in the U.S. in 2019, of which 60% were available in canned form. Consumer preference for canned foods due to their multiple benefits is anticipated to augment demand for can metal ends.
The screw closures segment accounted for the second-highest share of 29.1% in 2020. Screw caps are used for closing containers of liquid products, such as beverages, edible oils, syrups, and motor oil. As per the Department of Food and Public Distribution, Government of India, the net availability of edible oils from all domestic sources was 8,630 thousand tons in 2015-16, which increased to an estimated volume of 10,655 thousand tons in 2019-20 in India. Therefore, the increasing demand for liquid product packaging solutions is expected to drive the segment growth.
The cosmetics & toiletries application segment held a significant market share and is expected to register the fastest CAGR from 2021 to 2030. Cosmetic usage is increasing worldwide, which is expected to propel the demand for cosmetic packaging products. Players are focusing on developing new closures designs that are convenient to open and close as well as offer excellent seals. For instance, Berry Global Inc. introduced PalmSoft child-resistant closure for beauty and personal care products in 2018. This closure provides soft rubber feel at the top with an enhanced grip for patients with arthritis and other individuals facing difficulty in opening the bottle.
Players are focusing on making plastic closure sustainable by using recycled packaging materials. For instance, in September 2020, Coca-Cola North America introduced caps made from recycled High-Density Polyethylene (HDPE) plastic for DASANI bottles. Similarly, 20-oz., half-liter, and 1-liter PET bottles of Reyes Coca-Cola have re-sealable closures that are derived from 30% recycled content.
Grand View Research has segmented the global caps and closures market on the basis of material, product, application, and region:
Caps & Closures Material Outlook (Revenue, USD Million, 2017 - 2030)
Pharmaceutical Packaging Market – Global pharmaceutical packaging market size was valued at USD 107.0 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2021 to 2028.
Fresh Food Packaging Market – Global fresh food packaging market size was estimated at USD 123.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.0% from 2021 to 2028.
Molded Pulp Packaging Market – Global molded pulp packaging market size was valued at USD 3,811.1 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.1% from 2021 to 2028.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.