Covid-19 Pandemic - A Boom for plastic Caps & Closures
During covid-19 pandemic, demand for plastic caps and closures has increased especially in food & beverages and pharmaceutical industry. Due to uncertainty of supply in lockdown the consumers are bulk stocking due to panic buying. The need for plastic caps and closures is increasing as more individuals acquire daily essentials and fresh food via online channels. Many impacted countries' governments, such as India's, have requested food sector stakeholders to increase production in order to minimize supply-side shocks and shortages. Demand for plastic caps & closures used in personal & home care, automotive, and chemicals was experiencing a slow growth before 2019. However, during COVID-19, demand for plastic caps and closures has significantly risen in the food and beverage and pharmaceutical industries. It was estimated that the worldwide plastic caps & closures market experienced a growth of more than 4% from 2019 to 2020.
As hospitals, pharmaceuticals, and PPE makers respond to the crisis, demand for plastic caps and closures in the pharmaceutical business is projected to continue strong. The need for domestic staples, healthcare, and medical items is unlikely to decline significantly, and retail distribution of these products via online delivery is likely to expand. Thus, leading to rise in the demand for plastic caps and closures during the forecast period.
Growing Popularity of Dispensing Closures and Pump Closures in a Variety of Product Categories
Plastic caps and closures are driven by factors such as the demand for convenience and improved operability. Plastic caps are antibacterial and also prevent the product from dust and germs. Plastic caps and closures are cost-competitive as compared to its metal counterparts. Consumers are preferring caps & closures that are user-friendly, simple to open, and simple to operate.
Recent EU law strengthens plastic bottle recycling through aggressive separate collection objectives and required recycled content criteria, in line with efforts to establish a circular economy of plastics. Additionally, clear design standards for bottle tops and composite beverage packaging have been implemented. These caps are typically made of polyethylene or polypropylene and often contain additives such as slip agents and anti-statics.
During the forecast period, the global demand for plastic caps and closures is expected to expand at a pace of 4 to 6% per year, owing to:
The growing popularity of dispensing closures and pump closures in a variety of product categories such as skincare, liquid food products, drinks, and body care products is expected to drive the global plastic caps and closures market. The trend in health and wellness is turning toward preventative healthcare, which is driving demand for FMCG items that promote healthier lifestyles. To reassure consumers about the safety and authenticity of the products they are buying, plastic caps and closures that resist contamination, tampering, counterfeiting, and promote sustainability. Companies providing sustainable products include Closure Systems International, Borealis AG, and DASANI.
Pharmaceutical Industry to Exhibit Prospective Opportunities for Plastic Caps and Closures
Materials used in pharmaceutical applications must meet a variety of industry requirements and have performance characteristics that can assist cut costs and improve patient convenience. Various producers of caps and closures are customizing their product range to be used for optimized, lighter caps, closures, and dispensing system designs and processes, as demand for novel packaging in this segment grows and worries about product purity and security develop.
Maintaining the quality of pharmaceutical items during the production process is critical. Airborne particles, dust, and microbes can contaminate pharmaceutical products, hence require special packaging to protect the content. Plastic caps and closures are used to seal medicines in the pharmaceutical business to prevent contamination. The need for healthcare items is being driven by an increase in chronic illnesses, an ageing population, and a growth in disposable wealth in emerging countries, all of which are boosting the demand for plastic caps and closures.
Plastic Caps and Closures are Predicted to be the Most Popular in Asia Pacific
Plastic packaging is becoming more popular among customers than other types of packaging since it is lighter and easier to handle. Plastic packaging options are also preferred by major manufacturers due to their cheaper production costs. Furthermore, the use of polyethylene terephthalate (PET) and high-density polyethylene (HDPE) polymers in plastic bottling is expanding. PET bottles are becoming increasingly popular in the bottled and soft water industries. Owing to the aforementioned factors, the global plastic bottles and containers market is expected to reach a value of more than US$ 200 Bn by 2025.
Asia Pacific is expected to maintain its market dominance through 2025. The expansion of the plastic caps and closures market is aided by rising population, industrialization, and urbanization.
The rise of China as a global manufacturing powerhouse has boosted demand for plastic caps and closures. The region's manufacture of these products is boosted by low labor costs and easy access to raw materials.
Plastic cap and closure use per capita is high in industrialized economies such as the United States and Western Europe, limiting future expansion. In a few mature markets, the growing trend of health-conscious customers drinking healthy beverages such as juices and functional beverages has resulted in a fall in sales of carbonated soft drinks (CSDs). In countries such as the U.S., Germany, Italy, and France plastic caps and closures are in demand in conjunction with packaged product sales at the retail level. In the previous five years, declining soft drink sales have impeded the expansion of the beverage packaging industry, which is the largest end user in these countries, leading to slow growth during forecast period.
The European Union published Directive 2019/904 in June 2019 to reduce the environmental effect of some plastic items. This, among other things, necessitates a circular approach to single-use plastic beverage packaging, particularly the package caps, which frequently wind up in the environment as distinct garbage. Lids and caps of bottles and composite packaging with a capacity of up to three liters must remain firmly anchored to the containers throughout the duration of their usage, according to the directive. By the end of July 2024, EU member states must have implemented equivalent regulations.
Companies Focusing on Capacity Expansion to Meet the Soaring Demand
The key companies operating the global plastic caps & closures market are Berry Group, Crown Holding, AptarGroup, Amcor, BERICAP, Coral Products, Silgan Holdings, O. Berk Company, LLC, Guala Closures, and United Caps. These leading market players are making strategic decisions such as partnerships, mergers and acquisitions, facility expansions, and research and development to expand their geographic presence and customer base all over the world.
Key Elements Included In The Study: Global Plastic Caps & Closures Market
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