The China plastic caps market is estimated to garner a revenue of USD 16,317.7 Million by the end of 2033 by growing at a CAGR of 6.8% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 7,962.3 Million in the year 2022. The growth of the market can be attributed to the increasing export of plastic bottles and caps from China to other countries. The growing demand for plastic caps from other countries increases the manufacturing of plastic caps in China. Plastic stoppers, lids, caps, and other closures were China's 288th most exported goods in 2020. Additionally, China was the world's biggest exporter of plastic stoppers, lids, caps, and other closures in the same year, shipping more than USD 1 billion worth of these products abroad. Furthermore, China manufactures about 34% of the plastic bottles shipped to the United States. Moreover, over 30% of plastic lids going to the US are produced in China.
In addition to these, factors that are believed to fuel the market growth of China plastic caps include the rise in cheaper manufacturing cost of plastic products in China. Everyone in the world wants products at a reasonable cost, therefore low product cost of plastic boosts the demand for plastic product from various nations of the world, thus pushing the manufacturing units of China. The cost of productivity is lower on the back of extremely low labor costs, the salary of a tool maker is the lowest in the world, a Chinese tool maker will gladly perform the same task for around USD 1,000 while a tool maker in the US easily earns more than USD 40,000 annually. Furthermore, the overhead cost of the factory in China also contributed to low production costs. Many Chinese businesses are open 24 hours a day, 7 days a week, making better use of their costly machinery and making it comparably less expensive.
Base Year |
2022 |
Forecast Year |
2023-2033 |
CAGR |
6.8% |
Base Year Market Size (2022) |
USD 7,962.3 Million |
Forecast Year Market Size (2033) |
USD 16,317.7 Million |
Regional Scope |
China |
Growth Drivers
Higher Production of Plastic – Increased production of high-quality plastic is expected to augment the production of plastic-made products in China. Every month, China generates almost 7 million metric tonnes of plastic products. The greatest monthly production of plastic goods since January 2020 was around 8 million metric tonnes in December 2021.
Higher Use of Plastic in Packaging– Products in plastic packaging preserve their flavor, aroma, and nutritional value while being secured from external contamination. Therefore, plastics are highly used in packaging. The total estimated annual household plastic packaging consumption in China is 19,800 tonnes, out of which the total consumption of cans and containers, and PET bottles is around 3,800 and 5,500 respectively.
Rising Use of Bottles for Water and Beverages – Most water bottles and both carbonated & non-carbonated beverages used plastic caps from sealing the content. Around 11 million metric tonnes of soft drinks were produced in China in November 2022. Furthermore, the sale revenue of soft drinks in the year 2022 was around USD 126 billion.
Introduction of Better Plastic Caps and Grips – The International Technical Centre for Bottling and Related Packaging CETIE introduced a new standard for the neck of the cap, which is GME 30.40 to curb the weight of the neck and closure. Moreover, BERCAP launched around 7049 closures that matched the GME 30.40 standards for neck finish.
Low Production Cost of Plastic– The cost of plastic production in China is estimated to be cheap owing to low labor costs, the abundance of raw materials, and higher factory working hours. The price of plastic products is around 30% to 75% lower than in the United States.
Challenges
The China plastic caps market is segmented and analyzed for demand and supply by end users into food & beverage, cosmetics and personal care, pharmaceutical, household, and others. Out of the five types of end user, the food & beverage segment is estimated to gain the largest market share of USD 10,059 million at the end of 2033 by growing at a CAGR of 7.2% over the projected time frame. Moreover, the segment generated a revenue of USD 4,708.7 million in 2022. The growth of the segment can be attributed to the increasing use of carbonated drinks and water bottles, for carbonated drinks mostly PET of polyethylene terephthalate is used for packaging. In China, the total estimated annual household packaging consumption of PET bottles in the food and beverage industry is around 75 tonnes and 5200 tonnes, respectively. In addition to this, the consumption of other plastic bottles was around 177 tonnes. Furthermore, with a per-person consumption of about 28 billion gallons of bottled water in 2020, China dominated the globe in bottled water consumption.
The China plastic caps market is also segmented and analyzed for demand and supply by raw material into HDPE, LDPE, PP, and Others. Amongst these four segments, the HDPE segment is expected to garner a market revenue of USD 6726.2 million at the end of 2033 by growing at a CAGR of 7% over the projected time frame. Additionally in 2021, the segment produced revenue of USD 3,207.2 million. As a base material for plastic caps, HDPE resin has various benefits, including food safety, chemical resistance, high flexibility, and sustainability. The segment growth is expected to be on the back of high demand for HDPE and rising imports in China. Significantly more than any other nation or region, China was responsible for around 34% of the world's demand for HDPE in 2021 and China accounted for nearly 51% of net imports. In 2020, China imported about 3 million tonnes of HDPE and in the next year in 2021 around 6 million was imported.
Our in-depth analysis of the China plastic caps market includes the following segments:
By Cap Type |
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By Raw Material |
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By End User |
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising production of plastic products, the launch of better plastic caps in the market, cheaper manufacturing cost, and rising use of plastic in packaging are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of 6.8% over the forecast period, i.e., 2023 – 2033.
Ans: The availability of other raw materials, rising environmental concerns and, strict regulations against plastic usage are estimated to be the growth hindering factors for the market expansion.
Ans: The major players in the market are Hicap Closures Co., Ltd., Shantou Jinlei plastic industrial Co., Ltd., Guangzhou Cheers Packing CO., LTD, Cangzhou Weikang Food & Pharmaceutical Package Co., Ltd., Albéa (Albéa Suzhou), Jinan Youlyy Industrial Co., Ltd.Ningbo GreenYard Sprayers Co., Ltd., Berry Global Inc., BERICAP, Chenxin Packaging CO., Limited, and Yulin Plastic Packing Factory.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by cap type, raw material, end user, and by region.
Ans: The food & beverage segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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