Caps and closures are made from plastics, metals, wood, rubber, among others. They are one of the packaging solutions provided to various industries, including pharmaceuticals, food and beverage, cosmetics, paints and lubricants, among others which are mainly involved in the packaging of their products in plastic or glass bottles and jars.
Metal is used for producing caps and closures as it eliminates random oxidation, leakage, tainting and change in the flavor of the product. Aluminum, steel and tin-plate are the materials used to manufacture metal caps. All these materials help in ensuring product safety during storage and transportation. Aluminum contributed to the highest market revenue share of 88% in the year 2019
Some types of metal caps and closures are crown metal caps, twist metal caps, ROPP metal caps, screw metal caps and roll-on metal caps. ROPP metal caps held the highest market revenue share of 45% in 2019, owing to its increasing adoption of roll-on pilfer-proof (ROPP) caps for various bottles, jars and tubes. The seal can be easily opened and closed easily
The demand for metal closures is expected to rise rapidly over the forecast period, owing to their widespread usage in a variety of applications. By application, alcoholic beverages held the highest market revenue share of 73.53% in the year 2019
By geography, Asia-Pacific is expected to have the largest market share and dominate the metal caps & closures market from 2020 to 2027. Asia-Pacific accounted for the largest market revenue share of 40.32% in the year 2019 and is expected to remain dominant over the forecast period, with market revenue share of 43.60% in the year 2027
China dominated the metal caps and closures market in Asia-Pacific with a market revenue share of 28.42% in 2019. It is due to the increasing application of metal caps and closures in the wine industry. The rise in wine consumption would give the China metal caps and closures market a huge opportunity due to metal caps and closures' advantages. In 2019, the Chinese population consumed approximately 1.78 billion liters of wine, making China the fifth leading wine consumer worldwide
Market Dynamics
Drivers
- The surging demand for packaged food and beverages
- Product safety features and user-friendly properties of metal closures is expected to drive the market
Restraints
- Increasing adoption of plastic by the beverage industry
- Intense competition and uncertain return on investments
The surging demand for packaged food and beverages
Increasing sale of packaged food and beverage products is a significant factor that drives the metal caps and closure market. The packaging industry's main motive is to preserve food and beverage flavor, texture, test and extend its shelf life.
Rising health concerns, interest in ready-to-eat products, increasing income levels and rising living standards are the major factors driving packaged food and beverages market
Metal caps and closures help in the process to extend shelf-life of products and provide a barrier to dirt, moisture and oxygen. As metal caps and closures are the final components of packaging and are responsible for maintaining the product packing's integrity, the growth in packaging industry is expected to drive the metal caps and closures market
In addition, increasing wine consumption among consumers is driven by the health and wellness trend, further driving the metal caps and closures market
Modern-day consumers are aware of the production and origin methods of wine, thus increasingly favoring organic wines as a higher quality symbol. Therefore, the packaging of organic wines includes metal caps and these metal caps with plastic interiors provide a very tight seal over the bottle's entire mouth and neck, keeping the freshness intact
Furthermore, growing demand for wine among millennials and a wine bottle with a screw metal cap is elementary to cap because it can achieve a tight seal that keeps oxygen out for a long time. A metal screw cap is also easy to remove and reclose. Hence, the growing wine industry will help boom the metal caps and closures market.
Geographical Analysis
The Asia-Pacific Metal Caps and Closures is building its market by reaching US$ XX Million in 2019 and is estimated to record US$ XX Million by 2027 growing with a CAGR of 5.2% from 2020 to 2027
China is known for its food globally; however, China's staple food is rice in the south region and wheat-based bread and noodles in the north region. Companies have developed easy open-end aluminum cans having self-heating technology in them for foods and beverages
The heating element includes aluminum and silica, two delicate materials, which can undergo a chemical reaction to produce a large amount of heat in an intimately mixed powdered state. The self-healing technology of the metallic packaging helps the customer to get fresh food with excellent sealing properties
Various non-alcoholic drinks in China such as Vitasoy, Ye Shu Pai Ye Zhi, Mai Dong, C100, Jia Duo Bao and Red Bull (China-style) demand is growing in the country. Generally, metallic ROPP caps and crown-metal caps are used for these drinks packaging as they offer excellent sealing and do not react with the stored drink compared to other types of packaging
India is the land of spices and pulses. Many herbs are produced and transported across different parts of India and the world. Glass jars and containers have metallic caps such as twist-on caps and ROPP caps are predominantly used for packaging and storing the spices and pulse. The closures impart outstanding vacuum resistance with excellent sealing and resealing property. Also, these caps are rustproof, with a special coating of rubber inside the cap to make them airtight
Increasing consumption of beverages with rising need for convenience is the two significant factors triggering the market for beverage packaging in Indian Market. The Indian beverage packaging market is exhibiting robust growth, with sustainable packaging being the need of the hour. The beverage industry, including bottled water, CSD, fruit drinks and flavored milk, are the largest user of caps and closures
The beverage industry uses both metal and plastic caps & closures. Metal caps & closures include ROPP (Roll-on Pilfer-Proof) caps and crown closures in which major user segments include alcoholic beverages accounting for over 50%. ROPP caps are multi-color printed using offset process and are broadly categorized as printed caps, top embossed caps, knurl-embossed chamfered caps and side-embossed chamfered caps
China and Japan are witnessing growth in wine consumption. China is now the world's largest market for red wine and grape wine is recently becoming a trendy symbol of social status, luxury and healthy alcohol in the country
Rising consumption of wine in China and Japan has uplifted the usage of different metallic caps in the region, such as ROPP metal caps and screw metal caps in the Asia-Pacific region, compared to other types of packaging
In February 2020, Sula Vineyards, India's leading players in the Winemaking Industry, recently came up with the country's first canned wine segment for both of Dia's red and white wines, giving the beverage a casual and youthful twist
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