MARKET OVERVIEW- EUROPE PLASTIC CAPS AND CLOSURES MARKET
Plastic caps and closures are a safe and secure packaging solution commonly used for packing and sealing different types of bottles, tubes, containers, and jars. Plastic caps are used for plastic bottles and are commonly made from polyethylene or polypropylene, which may have a pour spout. While plastic closures are either thermoplastic (produced via injection molding) or thermoset (produced via compression molding). Injection-molded, thermoplastic closures are produced primarily from polypropylene, polyethylene, or styrene. These are the final components of the packaging process and are predominantly used in end industries such as food, beverage, pharmaceutical, lubricating oil, homecare, cosmetics, and personal care. Rising consumption of beverages and dairy products and the growing popularity of different types of dairy products in the market have boosted the need for caps and closures for packaging.
MARKET DRIVERS
The plastic caps and closures market are being driven by the rising demand for cosmetic and toiletry products to seal and prevent spills, make transportation simpler, and extend the shelf life. Furthermore, rising demand for deodorants, skin care, hair care, makeup, fragrances, antiperspirants, hygiene, and mouth care products in various applications is projected to grow the market. In addition, increasing consumption of beverages and innovative packaging solutions are expected to drive the market. Furthermore, the growing trend of health-conscious consumers drinking healthy beverages like juices and functional drinks also boosts the production of plastic caps and closures in this region.
MARKET OPPORTUNITY
The rise in research and development (R&D) activities by various private and government organizations along with the implementation of strategic initiatives, is expected to contribute to the growth of the market. Furthermore, the rise in demand for personal care products and emerging demand for cosmetic chemicals have certainly created market opportunities. It also prevents the loss of moisture from creams and from water-containing ointments and creams in cosmetic products. The plastic caps and closures market are growing in European countries as a result of increasing consumption of solid food and non-carbonated beverages, reflecting the economic recovery in a number of European countries.
MARKET RESTRAINTS
The major factors hindering the growth of the market are strict government regulation with respect to the use of plastics and excessive cost associated with initial investment. Due to consumers' growing environmental concerns and the easy availability of alternatives, the use of bio-based plastic for the production of caps and closures is the primary trend in the plastic caps and closures market. Furthermore, increase in the use of the packages without closures which offers various benefits to the packagers. These are the factors that are anticipated to hampered the market growth.
MARKET GROWTH CHALLENGES
A key challenge that may affect the growth of the market is the rise in raw material prices. However, for manufacturing, this sector is entirely dependent on suppliers of raw materials. The prices of raw materials like PP and PE fluctuate significantly in the market. It is difficult for manufacturers to maintain constant output because the cost of production is dependent on this raw material. In addition, HDPE, a raw material used for the production of the plastic caps and closures, has poor weathering, is sensitive to stress cracking, is not resistant to oxidizing acids and chlorinated hydrocarbons, and has poor temperature capability. This is a major factor that is expected to pose key challenges for the market growth over the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of Europe plastic caps and closures market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for plastic caps and closures in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
EUROPE PLASTIC CAPS AND CLOSURES MARKET SEGMENTAL OVERVIEW
The Europe plastic caps and closures market comprises of different market segments like, type, size in diameter, raw materials, end-users and country.
EUROPE PLASTIC CAPS AND CLOSURES MARKET BY TYPE
By type, the Europe plastic caps and closures market includes key segments like
On the basis of type, the Europe plastic caps and closures market includes key segments like caps and closures. The cap segment dominates the plastic caps and closures market over the foreseen period. The growth is due to increasing demand for packaged food products and increased awareness of healthy food products. Caps are ideal for the wine business, and the screw cap has many advantages to offer beyond being a practical alternative that extends the shelf life of uncorked bottles. Plastic caps are having many benefits such as cost-effectiveness, durability, customizability and chemical stability. In the many applications suited to plastic caps, these advantages amount to exceptional financial savings and commercial dependability. Plastic caps are available in many types and most frequent and used is bottle caps.
EUROPE PLASTIC CAPS AND CLOSURES MARKET BY SIZE IN DIAMETER
By size in diameter, the Europe plastic caps and closures market includes key segments like
- Less than 20 mm
- 20-50 mm
- Above 50 mm
The Europe plastic caps and closures market are divided into three categories based on diameter: less than 20 mm, 20-50 mm, and greater than 50 mm. Less than 20 mm plastic caps and closures segment holds the major shares over the forecast period. This is due to increasing use of the personal care and beauty devices. Less than 20mm plastic caps and closures are used in a range of applications, including drink packaging, non-food packaging, and cosmetic packaging. Due to their applications, such as helping to extend the shelf life of products, protecting them from dirt and moisture, and keeping the oxygen content of the packed product balanced, they find major applications in food and beverages, cosmetics, personal care, pharmaceuticals, and many more. 20 to 50mm caps and closures is widely used and hence it allows the recycling of these caps and closures for further use. There is vast use of such caps and closures.
EUROPE PLASTIC CAPS AND CLOSURES MARKET BY RAW MATERIAL
By raw material, the Europe plastic caps and closures market includes key segments like
- HDPE (High Density Polyethylene)
- LDPE (Low Density Polyethylene)
- PP (Polypropylene)
- Others
On the basis of raw material, the Europe plastic caps and closures market finds key segments such as HDPE (High Density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), and others. The polypropylene segment dominated the plastic caps and closures market owing to its low manufacturing cost, high strength-to-density ratio, and high temperature resistance. While the LDPE segment is expected to register the highest CAGR during the forecast period due to its good chemical resistance and electrical properties, toughness, and high flexibility and corrosion resistance. Low-density polyethylene (LDPE) is used in many applications, such as liners and food storage bags, to shrink and collate films. It is also used in caps and closures, plastic toys, and more, and is ideal for flexible packaging.
EUROPE PLASTIC CAPS AND CLOSURES MARKET BY END USERS
The Europe plastic caps and closures market finds key end-users like
- Food & Beverages
- Pharmaceuticals & Personal Care
- Cosmetics and Toiletries
- Agrochemicals
- Chemicals
- Lubricating Oil
- Others
On the basis of end users, the Europe plastic caps and closures market were bifurcated into food & beverages, pharmaceuticals & personal care, cosmetics & toiletries, agrochemicals, chemicals, lubricating oil, and others. The food and beverage market are anticipated to account for the largest market share and is expected to maintain its dominance throughout the forecast period. The dominance is due to changing eating habits and the quickening pace of life. Moreover, the benefits offered by food packaging, such as an extended and stable shelf life, high barrier properties, and safety, have boosted the industry’s growth. Properly applied caps can vacuum seal a container and provide consumers with an easy storage solution. Benefits of food packaging, such as the prevention of content contamination and improvement of food shelf-life, along with heightened efficiency, are expected to boost market growth.
Cosmetics and toiletries are leading at significant CAGR over the forecast period and accounted for a major market share over the forecast period. Owing to the rise in demand for personal care products and emerging demand for cosmetic chemicals. They provide a barrier to dirt, oxygen, moisture, etc. and control the permeation, keep the container properly closed and the contents safe for the specified shelf life until the time of opening, and provide scope for reclosing or reusing the container.
EUROPE PLASTIC CAPS AND CLOSURES MARKET BY COUNTRY
The Europe plastic caps and closures are studied for the following countries
- UK
- Germany
- France
- Spain
- Italy
- Rest of Europe
On the basis on country, the Europe plastic caps and closures market are studied in the UK, Germany, France, Spain, Italy, and RoE. The UK is expected to hold the major shares of the Europe plastic caps and closures market over the forecast period. This is due to the high demand for the product from a variety of end-use industries, such as the food and beverage, pharmaceutical, and personal care product industries, as well as applications like nutraceuticals and household chemicals, among others. In addition, the plastic closures market in Europe is driven by changes in drinks like sports drinks and juice-based drinks and the growing use of PET bottles that go one way instead of cans and cartons.
COVID-19 IMPACT ANALYSIS ON PLASTIC CAPS AND CLOSURES MARKET
Many economies suffered as a result of the COVID-19 pandemic. Complete lockdown and quarantine had a negative impact on numerous industries. Throughout the initial stages of the COVID-19 pandemic, manufacturing facilities all over the world were shut down. At various stages, the COVID-19 pandemic had a significant impact on the European economy as well as demand for electric limited slip differentials. With the recent outbreak of COVID-19, the packaging market may witness a decline in growth due to restrictions on the movement of goods and severe disruptions in the supply chain. However, the growth has been high after the market opened after COVID-19, and it is expected that there would be considerable growth in the sector, owing to higher demand for packaged food products and packaged beverages. In addition, growing awareness about healthy lifestyles, demand for healthcare products, and e-commerce transportation Players are conducting several research and development activities to improve the technology involved in the market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of plastic caps and closures market is primarily focused on expanding the country growth of plastic caps and closures industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in plastic caps and closures sector has led the growing demand for the market. Besides, the market offers range of products in different application to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Amcor Limited (Switzerland)
- Silgan Holdings Inc (United States)
- WestRock Company (United States)
- Weener Plastics Group B.V. (Netherland)
- UNITED CAPS (France)
- TriMas Corporation (United States)
- Saint-Gobain (France)
- BERICAP (Germany)
- Kornelis Caps & Closures (Netherlands)
- Plastic Closures Limited (United Kingdom)
- Berry Global, Inc (United States)
- Crown Holdings Inc. (United States)
- AptarGroup Inc. (France)
- Tetra Pak International SA. (Switzerland)
RECENT DEVELOPMENT:
April 2021: Crown Holdings, Inc. announced a definitive agreement to sell 80% of its European Tinplate business to KPS Capital Partners that values the enterprise at €2.250 billion (approximately $2.7 billion).
