Plastic Caps and Closures are the final components of the packaging process used in various industries such as food and beverages, pharmaceuticals, household goods, cosmetic products, etc. for maintaining the quality of the products, freshness and increasing the shelf life.
Market Dynamics:
The market growth is driven by the rising demand for plastic caps and closures due to their characteristics such as versatility, easy availability, durability, and flexibility. The growing trend of e-commerce shopping is also influencing the use of plastic caps and closures. Plastic caps and closures are widely used in toiletries for producing the hair preparations products, face creams, lotions and perfumes due to rising emphasis on health and hygiene.
Several companies are preferring the plastic caps and closures due to their lower transportation cost, cost-effectiveness, durability, customizability, and chemical stability. New product launches and product diversification shall have a positive impact on the market. For instance, in March 2019, Aptar Beauty has launched a new dispensing closure made from 50% Post-consumer recycled resin (PCR) to be used on Ecover washing up liquid. It would ensure a leading position in the global transition to a circular economy and a sustainable future.
Segment Analysis
By Material
High-Density Polyethylene (HDPE)
Low-Density Polyethylene (LDPE)
Polypropylene (PP)
Polyethylene Terephthalate (PE)
Others
By Product Type
Screw Caps
Dispensing Caps
Liquid Carton Closures
Plastic Aerosol Sprays
Plastic Lotion Pumps
Others
By Application
Food & Beverages
Pharmaceuticals
Cosmetics & Toiletries
Others
Geographical Presentation
By region, the global plastic caps and closures market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East and Africa. Among all of the regions, North America dominated the global plastic caps and closures market due to the rising growth in the food and beverage industry. As per the Committee for Economic Development, the food and beverage industry is meeting the continuous needs of 320 million American consumers, as well as many consumers overseas. The food and beverage industry alone generates USD 164 billion in value-added and accounts for 15.3 cents out of every consumer food dollar. Hectic lifestyles have led to a shift from the trend of cooking to the trend of snacking, ready to eat food, and processed foods. Consumers are buying the packed processed and ready to eat foods. This has resulted in increasing the demand for plastic caps and closures for packing and storing those foods. Different kinds of airtight plastic closures are used for storing the food in bottles. Metal caps or closures are also used for the storage of grains in a glass container.
European countries are also witnessing the high usage of plastic caps and closures in product packaging to enhancing the aesthetics and functionality of the products. Plastic caps and closures are widely used in alcoholic and non-alcoholic beverages. Europe is the largest exporter of food and drink products in the world. According to FoodDrinkEurope, the food and drink industry has a turnover of Euros 1.1 trillion and Euros 230 billion in value-added in Europe. The majority of the companies are using injection-molded HDPE closures for packaging pharmaceutical products. There is a shift from two-piece closures to one-piece closures due to their less weight, large seal angle and require less torque.
Growing urbanization, rising per capita income, booming food & beverages and growing purchasing power are fueling the market growth in the Asia Pacific region including China, and India.
Competitive Analysis
The global plastic caps and closures are witnessing the high competition with the presence of several local and international players. Amcor Limited, Silgan Holdings Inc., Comar LLC, AptarGroup, Alcoa Corporation, Phoenix Closures, Inc., and Guala Closures Group are the leading market players with the prominent market size.
Companies are using different strategies such as portfolio expansion, product diversification, new product launch to increase their market penetration. Different processes such as injection molding, compression molding and others are used for the production of plastic caps and closures.
The companies are entering into the collaborations, mergers, strategic partnerships and acquisitions to increase the demand for plastic caps and closures and their expansion across the globe. For instance, in January 2020, Silgan Holdings Inc. had acquired Albeas dispensing business for USD 900 million. It would enable Silgan to enhance the scope of our leading closures franchise by introducing the new products and capabilities in the highly engineered dispensing category. In August 2019, AptarGroup, Inc. had entered into an exclusive partnership with Nippon Closures Co., Ltd. (NCC) to cross-license technology for tethered beverage closures. This is the first cross-license, registered intellectual property exchange between NCC and Aptar. It would allow Aptar to grow the portfolio of dispensing closures that are more convenient for consumers and more sustainable for the environment.
The companies are also investing to increase its production capabilities around the globe. For instance, in January 2020, Berry Global Group Inc. had raised the investment of USD 20 million to add capacity for breathable films. The company would add capacity at plants in Augusta, Ky., Nashville, Tenn., McAlester, Okla., and Washington, Ga.
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