United States Caps Market 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

Market Overview and Growth Highlights 2019-2028

Caps and closures are the specialized products which are used to seal various containers, such as bottles, cans, jars and others. These sealing products are available in various shapes and sizes for a wide range of products and containers. Caps and closures also act as a key factor to enhance the shelf life of the product packed inside the container and also prevents it from spoilage. The United States caps market is thriving on the back of introduction of several new products that helps companies to enhance their credibility and brand value, coupled with the ongoing research activities over the past few years that is contributing to the development of new products. Moreover, increasing investments by organizations for the development of advanced caps and closures so as to improve their global footprint, followed by the rising demand for these caps from the end-user industries are some of the prominent factors anticipated to promote the growth of the United States caps market.

The United States caps market is projected to grow with a CAGR of 4.4% during the forecast period, i.e., 2020-2028. The market is further anticipated to touch USD 18,825.3 million by the end of 2028. One of the significant factors that can be attributed to the growth of the United States caps market is the growing food & beverage industry in the nation and the rising demand for caps and closures from the industry. Moreover, increasing consumption of packaged food in the country and the rising demand for innovative packaging solutions are some of the additional factors anticipated to promote the market growth during the forecast period. According to the statistics of the Economic Research Service of the United States Department of Agriculture (USDA), in the year 2019, around USD 1.7 trillion worth of food was supplied by the food marketing system. This also included the food service and food retailing sectors.

Market Segmentation Synopsis

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. 

Market Drivers & Challenges

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.

Increasing Innovations in Caps & Closure Technologies

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.

Top Featured Companies Dominating the 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.