Segmentation by Material (Plastic, Metal, Glass, Wood, Rubber & Elastomers, and Others); by Size (10mm, 13mm, 15mm, 18mm, 20mm, 24mm, 28mm, 33mm, 38mm, 48mm, 53mm, and Others); by Type (Child Resistant Closures, Dispensing Caps, Liquid Cartoon Closures, Cap Ends, Crown Caps, Corks, Glass Stopper, Rubber Stoppers, and Others); and by End-User (Cosmetics & Toiletries, Automotive, Beverages Industry, and Others) – Demand Analysis & Opportunity Outlook 2019-2028
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Growth Indicators
Increasing Consumption of Packaged Food & Beverages to Drive the Growth of the Market
According to an article titled “The Healthfulness of the US Packaged Food and Beverage Supply: A Cross-Sectional Study”, published in the US National Library of Medicine of the National Institutes of Health (NIH), stated that the food supply in the United States is largely dominated by the processed packaged food and beverage products.
(Source: Baldridge, A. S., Huffman, M. D., Taylor, F., Xavier, D., Bright, B., Van Horn, L. V., Neal, B., & Dunford, E. (2019). The Healthfulness of the US Packaged Food and Beverage Supply: A Cross-Sectional Study. Nutrients, 11(8), 1704. https://doi.org/10.3390/nu11081704)
The food and beverages industry in the United States is growing significantly. Increasing consumption of packaged food and beverages in the country is also raising the need for caps and closures amongst the manufacturers of the food and beverages. Moreover, rising need for food manufacturers to preserve the texture, taste, and flavor of food and beverages and also to extend the shelf-life of the products is also raising the need for the utilization of caps and closures in the packaging of food and beverage products. Caps are majorly used for maintaining the freshness of the food products and to prevent leakage. Caps also helps to reduce the contamination of the food product. Additionally, the shift in consumer preferences from unpacked food to packed food products, along with the increasing consumption of bottled water in the nation are some of the additional factors anticipated to drive the demand for caps and closures, which in turn would drive the growth of the United States caps market during the forecast period.
By Material
The United States caps market is segmented by material into plastic, metal, glass, wood, rubber & elastomers, and others. Among these segments, the plastic segment held the largest market share of 68.20% in the year 2019 on account of the fact that they are light weighted and are also cost-effective. Moreover, plastic caps are also chemically resistant, which makes them ideal for sensitive applications. Additionally, low cost of production of plastic caps, along with easy storage solutions offered by the plastic caps are some of the significant factors anticipated to drive the growth of the plastic caps segment in the United States caps market during the forecast period. The plastic caps segment is further divided into polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, polystyrene and others. Among these segments, the polypropylene segment registered the largest market share in the year 2019, backed by its properties of malleability, strength, lightweight, stability, chemical resistance and others.
The United States caps market is also segmented by size into 10mm, 13mm, 15mm, 18mm, 20mm, 24mm, 28mm, 33mm, 38mm, 48mm, 53mm, and others. Among these segments, the 10mm segment is projected to grow with the highest CAGR of 5.6% during the forecast period. The market is further segmented by type into child resistant closures, dispensing caps, liquid cartoon closures, plastic lotion pumps, screw & lug cans, cap ends, crown caps, corks, glass stopper, rubber stoppers, and others. Out of these segments, the screw & lug cans segment is projected to hold the largest market share of 36.67% by the end of 2028. Increasing penetration of lug cans in the food and beverages sector in the United States is one of the major factors that is anticipated to drive the growth of the segment during the forecast period. The United States caps market is additionally segmented by end-user into cosmetics & toiletries, food industry, healthcare, chemicals, automotive, beverages industry, and others, out of which, the beverages industry segment is anticipated to hold the largest share of 49.42% by the end of 2021 and further grow with a CAGR of 4.4% during the forecast period. Increasing consumption of bottled beverages in the United States, backed by the increasing population in the country and the rising need for premium drinks are some of the factors anticipated to drive the growth of the segment during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
The present hectic lifestyles of consumers are raising the need for packaging concepts, such as packaging for on-the-go food products or liquid breakfast products, that deliver greater convenience and support to the consumers. Owing to such a factor, packaging companies are increasingly investing on research and developments for developing innovative caps and closures which can help the end-users from the food and beverage industry or the pharmaceutical industry to efficiently seal and protect their products. Moreover, the recent advancements in the caps and closure manufacturing technologies on account of the need for sustainable packaging methods are also expected to create an exciting potential for the new entrants in the future. Additionally, increasing application of high-performance caps for packaging jars and closure injection molding solutions to achieve tamper-evident caps are some of the factors anticipated to drive the growth of the United States caps market in the coming years.
Barriers
Fluctuating Raw Material Prices and Stringent Government Regulations to Hamper the Market Growth
Raw materials including plastic resins such as polypropylene (PP) and polyethylene (PE) are widely used for the production of caps and closures. Apart from these, materials such as wood, paperboard, rubber and others are also being used significantly for manufacturing caps and closures. A major challenge that lies amongst the manufacturers of caps and closures is the sourcing of these raw materials at a certain obtainable price as the price volatility of these materials is significantly high, thereby affecting the profitability of the manufacturers. The volatility in the price of the raw materials can be attributed to the scattered availability and decreasing production of the raw materials, along with the stringent regulations regarding the production of plastic resins. Such factors are anticipated to restrain the market growth during the forecast period.
Impact of COVID-19 on United States Cap Market
The demand for caps and closures in the United States saw a sudden rise in demand during the initial phase of the COVID-19 pandemic. The demand of the product was observed primarily from the food & beverages and pharmaceutical sector, backed by the growing need for end-use products in both these sectors. The manufacturers of caps and closures in the United States faced numerous challenges since the outbreak of the virus as the prices of raw materials fluctuated significantly and disturbances in the supply chain across the country was hit due to the stringent regulations of the government. As a result, the manufacturers witnessed a severe shortage of raw materials to meet their production needs. However, over the time, it is expected that with the rising demand for drugs and packaged food products, there would be a significant rise in demand for caps and closures, especially from the pharmaceutical and food & beverage industry, thereby creating vast opportunities for the new entrants in the United States caps market.
Some of the affluent leaders in the United States cap market are United Caps Luxembourg S.A., Silgan Holdings Inc., BERICAP SC LLC (BERICAP Holding GmbH), Closure Systems International, Berry Global Inc., Crown Holdings, Inc., Enercon Industries Corporation, and CL Smith.
June 18, 2020: United Caps Luxembourg S.A. announced that it has successfully acquired Embalatap, a Spanish organization which specializes in caps and closures for vinegar and edible oils. The acquisition is aimed at enhancing the product portfolio of United Caps for edible oils and vinegars.
February 4, 2020: Silgan Holdings Inc. announced the successful acquisition of Cobra Plastics, Inc., a company that manufactures and sells injection molded plastic closures. The acquisition is aimed at the expansion the existing product portfolio of Silgan for a variety of new markets and applications.
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 need for advanced and innovative packaging solutions from the manufacturers of end-use products, is one of the major factors driving the market growth.
Ans: The market is anticipated to grow with a with a CAGR of 4.4% during the forecast period, i.e., 2020-2028.
Ans: The major players in the market are United Caps Luxembourg S.A., Silgan Holdings Inc., BERICAP SC LLC (BERICAP Holding GmbH), Closure Systems International, Berry Global Inc., and others.
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The United States Caps market is segmented by material, size, type, and by end-user.
Ans: The plastic segment, which is a sub-segment of the material segment, held the largest market share of 68.20% in 2019 on account of the light-weight and chemical resistant properties of plastic, and the high cost-effectiveness of the product.
Ans: Concerns for the fluctuating prices of raw materials that are used for manufacturing caps and closures is one of the major factors estimated to act as barriers to the growth of the market.
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