According to a new report from Grand View Research, Inc., by 2030, the global Closures and caps market size is expected to exceed $143.699.6 billion, with a compound annual growth rate of 5.0% during the forecast period. The market is expected to be driven by the growth of the global food and beverage industry, promoting increased use of packaged products.
Key Insights and Trends
Growth in the Metal Industry
From 2021 to 2030, the metal industry is expected to grow at a compound annual growth rate of 4.8%, because metal is more durable and sustainable than plastic
According to the CAN Manufacturers Association 2019-20 Annual Report, the total number of metal cans shipped from the United States in 2018 was 125.123 billion cans, which increased to 1,270,442 million cans in 2019 for various food and beverage products
Impact of COVID-19
In addition, the COVID-19 pandemic is expected to increase the demand for energy drinks, protein shakes, and dietary supplements that promote health and improve the immune system
This, in turn, is expected to drive the demand for food-grade packaging solutions (including bottle caps and bottle closures) soon.
Companies in the closures and caps industry are adopting various strategies, such as expanding production capacity and strengthening market presence through mergers and acquisitions
For example, in June 2020, Hilgen acquired 10 dispensing plants under the Albéa Group. The acquisition is expected to help Silgan expand its closure business and dispensing system business
Peanut butter, jelly, ketchup and other spreadable condiments are widely used in homes and restaurants in the United States and Canada. According to the results of a survey released by YouGov USA in August 2019, about 66% of the respondents “like” or “somewhat like” peanut butter and jelly sandwiches. This, in turn, is expected to promote the demand for dispensing caps and screw caps for sealing containers of various spreadable articles.
Demand in Food Condiments
Closures play an important role in protecting canned food from moisture and dust particles. According to data released by the United States Department of Agriculture, in 2019, the per capita consumption of tomatoes in the United States was about 31.4 pounds (about 31.4 kg), of which 60% were supplied in cans. Due to the multiple benefits of canned food, consumer preference for canned food is expected to increase the demand for canned metal ends.
Screw Closures Market
In 2020, screw closures accounted for the second highest proportion at 29.1%. Screw caps are used to close containers for liquid products, such as beverages, edible oil, syrup and motor oil. According to data from the Food and Public Distribution Department of the Government of India, in 2015-16, India’s domestic net supply of edible oil from all sources was 86.3 million tons, which increased to an estimated amount of 10.655 million tons in 2019-20. Therefore, the increasing demand for liquid product packaging solutions is expected to drive the growth of this sector.
Cosmetics and Toiletries Sector
Cosmetics and toiletry applications occupy a considerable market share and are expected to record the fastest compound annual growth rate from 2021 to 2030. The use of cosmetics is increasing globally, which is expected to drive the demand for cosmetic packaging products. Players focus on developing new closure designs that facilitate opening and closing and provide excellent seals. For example, Berry Global Inc. launched PalmSoft’s anti-child closure service for beauty and personal care products in 2018. This closure provides a soft rubber feel at the top with enhanced grip for patients with arthritis and other individuals facing difficulties opening the bottle.
Players are focus on using recyclable packaging materials to make plastic sealing sustainable. For example, in September 2020, Coca-Cola North America launched DASANI bottle caps made of recycled high-density polyethylene (HDPE) plastic. Similarly, 20 ounces. The half-liter and 1-liter Reyes Coca-Cola PET bottles have resealable caps and come from 30% recycled content.