Caps and Closures Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021
Albany, NY -- (SBWIRE) -- 08/26/2016 -- With the top six players including Silgan Holdings Inc, Global Closure Systems, Bericap, Crown Holdings, Inc., Berry Plastics, and Reynolds Group Holdings Ltd. barely accounting for 19.7% in 2014 the global caps and closures market exhibits a highly fragmented vendor landscape. Competition prevailing in the market is therefore considerably high and there are little chances of it declining in the next few years. According to Transparency Market Research, (TMR), key players have been adopting competitive strategies to cater to the dynamic consumer demand and establish a strong presence in the market. A majority of the companies operating in the caps and closures market are considering mergers and acquisitions to expand their footprint in emerging markets and expand their product portfolio. Besides this, product development has also become a part of their business strategy for strengthening their market position.
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According to TMR, the global caps and closures market was valued at US$36.23 bn in 2014. Rising at a CAGR of 5.2%, the market is expected to reach US$51.57 bn by the end of 2021. By application, the alcoholic beverages segment led the market in 2014, holding a share of 57.35% in terms of revenue. Regionally Asia Pacific is expected to maintain its dominance in the market through the forecast period.
Demand from Packaging Industry to Emerge as Major Growth Driver
"The caps and closures market is significantly gaining from the increasing demand from the packaging industry," said a lead TMR analyst. Packaging extends the shelf life of food and beverages and helps retain their texture and flavor for a longer time. "A paradigm shift in consumer preference from unpackaged to packaged food items in countries such as India, China, and Brazil will augur well for the packaging industry, thus fuelling the demand for caps and closures," added the TMR analyst.
The market will also gain impetus from the rising demand for plastic caps and closures as their demand has recently surged in the beverages industry. The increasing use of PET-based disposable bottles will translate into lucrative sales opportunities for manufacturers of plastic caps and closures. Ensuring cost-effectiveness and light weight are crucial aspects in the production of PET-based disposable bottles. The use of plastic caps and closures in the industry is therefore expected to increase in the forthcoming years.
Demand for Lightweight and Cost-effective Packaging Could Dampen Market's Growth
Despite witnessing favorable growth opportunities, competition from the flexible packaging industry will dampen the market's growth to an extent. Flexible packaging such as pouches is fast replacing containers that require caps and closures in the food and beverages industry. This is expected to negatively affect the sales of caps and closures. Moreover, flexible packaging is lighter in weight because it is made using materials such as PVC, paper, aluminum, and polypropylene. This is helping flexible packaging emerge as a potential substitute for caps and closures.
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Due to recent changes in the packaging industry, manufacturers are under pressure to lower the cost of caps and closures. The trend of lightweight packaging is compelling them to produce cost-effective and lightweight caps. Contrary to this, lightweight caps are more prone to cracking, sealing, and contamination. This could negatively impact the market's trajectory.
Nevertheless, a dynamic consumer demand has impelled manufacturers to invest in product innovation. The emergence of novel technologies, designs, and new materials is expected to create growth opportunities for the market.
This review is based on a report published by TMR, titled "Caps and Closures Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021."
Product development is the key strategy adopted by leading players to cater to a dynamic consumer demand.
Spurred by demand from the packaging industry, global caps and closures market to expand at 5.2% CAGR from 2015-2021.
Holding over 57.35% of the market in terms of revenue, alcoholic beverages emerged as the leading segment in 2014.
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