Global Beverage Caps and Closures Market - Segmented by Type of Material (Metal, Plastic) and Region - Growth, Trends and Forecast (2018 - 2023)
The beverage caps and closures market was valued at USD 56.94 billion in 2017, and is expected to reach a value of USD 73.29 billion by 2023 at a CAGR of 4.01 %, over the forecast period (2018 - 2023).The scope of the report is limited to the solutions offered by major players, including providers of plastic, metal, and rubber cork closures. The regions considered under the scope of the report include North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Caps and closures are essential for extending the shelf life and retaining taste, flavor, and texture of the contents. Besides offering leak-proof and contamination resistant features, these caps and closures play a vital 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. Furthermore, the increasing demand for packaged beverages, is anticipated to lift the steady momentum of the market, across different regions worldwide. Stringent regulations by FDA, CPSC, ISO, and other mandatory standards, have been instrumental in driving product innovation and sophistication across the beverage industry.
However, the market is challenged by the fluctuations in energy. Raw material costs have increased, due the expanding global demand and tight supplies that have hindered the growth of the market, and squeezed profit margins.
Technological Advancements and Product Innovation to Aid for Product Differentiation and Branding
Along with the traditional demands, such as leak tightness, easy closing, and offering higher barrier properties, customers have increasingly-high expectations. Thus, innovation has become a characteristic to define the packaging industry’s approach to cater to the vast and changing consumer demands. The majority of innovations associated with beverage caps and closures, are geared toward features, such as material, weight, ecological, or economic requirements. These innovations include transparent, translucent, or colorful design solutions that attract end-users toward the product at the point of sale. Manufacturers tend to align their innovations to the on-going trends, such as hectic lifestyles that have driven convenient and smaller-sized packs. For example, the sports beverage caps and closures are ideal for consumers who have a mobile lifestyle. Thus, wide-neck closures have met this need, as it makes drinking fruit juices and milkshakes much easier.,Major innovations have also been made in child-proof, tamper-resistant and senior-friendly caps and closures. For instance, the company Spadel Group, introduced a new solution of a user-friendly petal-flower-shaped screw cap for Wattwiller mineral water, which was specially designed for senior citizens and offered low torque on first opening that will be easy to close and reopen thereafter.
Plastic Caps and Closures held the Largest Share
The plastic beverage packaging market is anticipated to grow at a healthy rate, owing to several factors, such as dynamically changing lifestyles, availability of feedstock, and increasing emphasis on manufacturing innovative designs. Plastic bottles are becoming more pervasive because of their advantages over glass bottles. Choosing plastic over glass is an easy decision for manufacturers looking to reduce weight, speed up transportation, and reduce packaging costs. Polyethylene terephthalate (PET) bottles are expected to witness steady demand from end-use sectors, during the forecast period. Innovations in plastic manufacturing technology, and an increase in disposable incomes, due to the rising employment rate, standout as major driving forces for plastic in the market. Cost-effective packaging solutions, coupled with technological advancements, are further boosting the use of plastic in the beverage packaging industry.However, the market is expected to face challenges due to government regulations, and consumer demand pushing manufacturers to look for packaging solutions that are biodegradable or derived from sustainable sources.
Asia-Pacific Dominated the Market
The beverages industry in APAC, has shown a robust growth in recent years, owing to rising population and 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 World Health Organization 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.
Key Developments in the Market