MARKET OVERVIEW - NORTH AMERICA PLASTIC CAPS AND CLOSURES MARKET
North America has seen significant growth in the caps and plastic market due to the increasing demand for the food and beverages industry. Plastic caps and closures are made from specialty polymer additives and are used in many applications such as drink packaging, non-food packaging, and cosmetic packaging. It is mainly produced from high-density polyethylene (HDPE) and polypropylene (PP) due to its high elastic properties. proper cap or closure is important for packaging containers. A bottle or jar’s closure is an important component that ensures your packaging is user-friendly. Depending on specific bottle type and end use, there are many different types of caps and closures available such as push-pull, flip top, dispensing cap, child resistant cap, twist top, tamper evident cap, and more. It also provides an ideal economic solution to food and beverage storage. They also make the package nearly tamper-proof and hence widely used. The increasing demand in the consumer industry will drive market growth over the forecast period.
MARKET DRIVERS
Increasing demand for food and beverages in the United States will drive market growth. According to a report by the US Committee for Economic Development, the food and beverage industry consists of close to 27,000 organizations and employs almost 1.5 million people. In addition, the increasing use in furniture design, chemical, storage, medical supplies, and electronic supplies all use forms of plastic caps and closures will boost the market growth. The increasing use of medicine bottles features another specialized design that offers both child safety and storage benefits will boost the market growth.
MARKET OPPORTUNITIES
the significant rise of eCommerce, social media, and the demands for a premium online experience, innovative closure design is playing a key role in company branding, and attracting consumer attention will drive the market growth. In addition to the aesthetics aspect, closure designers are now required to consider the greater protection of the product during express delivery, especially focusing on leakproof design. The emergence of lightweight closure design is a solution to significantly reduce plastic usage and align with the recent trend in green initiatives. These factors are driving the market growth in the coming period.
MARKET RESTRAINTS
Plastic caps and closures are hindered by the availability of other substitute materials available in the market. The alternative material such as packaging pouches and blisters packages. These products and materials are less expensive than caps and closures. In addition, the increasing use of silicone is also an excellent alternative for household plastics such as plastic wrap and also a substitute for various other plastic-based products. These factors limit the market growth during the mentioned forecast period.
MARKET GROWTH CHALLENGES
The Plastic Caps and Closures market is facing the biggest challenges as increasing environmental concerns due to the misuse of such products. The misuse of plastic products will cause harm to the environment and oceans. For example, plastic caps and closures in the form of water bottles thrown into the oceans will cause water contamination and serve as a challenge in the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the North America Plastic Caps and Closures market, market size, and compound annual growth rate (CAGR) for 2022-2028, considering 2021 as the base year. The increasing use of plastic caps and closures in numerous end-user industries is expected to propel growth at a specific CAGR from 2021-2028.
PLASTIC CAPS AND CLOSURES MARKET SEGMENTAL OVERVIEW
The North America Plastic Caps and Closures market comprises different market segments like type, material, end-user and Country.
PLASTIC CAPS AND CLOSURES MARKET BY TYPE
By type, Plastic Caps and Closures include key segments of
Screw Cap held the major market share in the Plastic Caps and Closures market. The screw Cap is easy to reseal and open. Screw caps have a much lower failure rate than cork, and in theory, will allow a wine to reach the customer in perfect condition. It also prevents oxidation which makes it ideal for the wine industry. It is becoming increasingly popular to use screwcaps for white wines and hence segment shows the major growth over the forecast period.
PLASTIC CAPS AND CLOSURES MARKET BY MATERIAL
By material, Plastic Caps and Closures include key segments of
- HDPE (High Density Polyethylene)
- LDPE (Low Density Polyethylene)
- PP (Polypropylene)
- Others
HDPE (High-Density Polyethylene) held the major market share in the Plastic Caps and Closures market. HDPE (High-Density Polyethylene) has a high strength-to-density ratio and is used in the production of plastic bottles, corrosion-resistant piping, geomembranes, and plastic lumber. The structure of HDPE is linear and it contains very little branching, resulting in stronger intermolecular forces hence it is used in shampoo bottles, chemical containers, recycling bins, and more.
PLASTIC CAPS AND CLOSURES MARKET BY END-USER INDUSTRY
The Plastic Caps and Closures market is applied across the end-user industry such as
- Food & beverages
- Pharmaceutical and Personal Care
- Cosmetics and Toiletries
- Other
Food & beverages is a major contributor and hold the major market share over the period. The main function of bottles caps is to protect the content inside the package. Some bottle caps are designed to dispense liquid products like condiments, oils, sauces, etc. They find wide use in food and beverage, FMCG, pharmaceutical and chemical industries. According to Cleveland-based The Freedonia Group’s 2017 “North America Plastic Caps & Closures by Product, Market and Region” report, beverage caps and closures accounted for 66 percent of the overall North America caps and closures market in 2016, and will continue to account for a majority of the demand in the future. Therefore, this segment is dominant and growing at the fastest CAGR.
PLASTIC CAPS AND CLOSURES MARKET BY COUNTRY
The North America Plastic Caps and Closures market is studied for the following countries
- United States
- Canada
- Mexico
The United States is the largest region in the plastic caps and closures market in 2022. The increasing plastic use and increasing consumer preference for convenient packaging will drive market growth. The increasing demand for packaged food and bottled beverages is driving the market in North America.
COVID-19 IMPACT ANALYSIS ON THE NORTH AMERICA PLASTIC CAPS AND CLOSURES MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the North America Plastic Caps and Closures market. In addition, a complete analysis of changes in the North America Plastic Caps and Closures market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of a pandemic on North America economies, international trade, business investments, GDP, and the marketing strategies of key players s present in the market.
COVID-19 has caused a temporary disruption in plastic production and demand was declined. This happened due to disruption in the supply chain and other reasons such as lockdowns and border restrictions reduced plastics production overall. The report is represented by the online library of the Organisation for Economic Cooperation and Development (OECD). North American plastics use in 2020 is estimated to have declined 2020 by around 10 million tonnes (Mt) or 2.2%, which is 4.5% below the pre-COVID projection for 2020. The Plastic Caps and Closures market had showed a mixed reaction to COVID Impact as the demand for packaging in the year 2020. On the one hand, the shift towards takeaway, food delivery, and e-commerce increased the demand for plastic packaging. The demand for hygiene products, including disinfectant gel – which mostly comes in plastic packaging – also increased. On the other hand, the closure of shops and workplaces and other limitations to economic activity translated into reduced demand for packaging. The reduction is attributed to lower production levels in sectors that demand packaging plastics, which significantly reduced the market of commercial and industrial packaging.
COMPETITIVE LANDSCAPE ANALYSIS
The Plastic Caps and Closures market has leading operating players that are primarily focused on expanding the North America growth of the Plastic Caps and Closures industry with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the Plastic Caps and Closures sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfill the required demand of consumers, which further contributes to healthy growth in the market.
The key players studied in the market are
- Amcor Limited
- Silgan Holdings Incorporated
- WestRock Company
- Weener Plastics Group NV
- TriMas Corporation
- Saint-Gobain
- RPC Group plc
- Bericap
- Aptargroup Inc
- Closure Systems International
- Caprite Australia
- Plastic Closures Limited
- Newell Brands Incorporated
- Evergreen Packaging Inc.
- Ball Corporation
- Crown Holdings Inc.
RECENT DEVELOPMENT:
Feb-2023: Berry North America Group, Inc is partnering Coco-Cola Bottling company. The Berry North America group is Europe's first plastic packaging manufacturer to supply The Coca-Cola Company with a lightweight, tethered closure for its carbonated soft drinks in PET (polyethylene terephthalate) bottles.
January 2021: Amcor has launched IMPRESSIONS, a technology developed in collaboration with MGJ that enables brands to customize closure liners, such as the underside of bottle caps. IMPRESSIONS is designed to enable online experiences to benefit both brands and consumers directly.
