The North American plastic caps and closures market is expected to record a CAGR of 8% over the forecast period. Plastic caps and closures are essential for extending the shelf-life and retaining the taste, flavor, and texture of the packaged product.
New York, March 17, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Plastic Caps and Closures Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06036733/?utm_source=GNW
Besides offering features, such as leak-proof and contamination resistance, plastic caps and closures play a crucial role in driving factors, such as visual appeal, brand differentiation, and convenience for consumers.
- Moreover, caps and closures are imperative for the packaging industry, which serves as the primary driving force for the market’s growth. Further, the increasing demand for packaged products is anticipated to augment the steady momentum of the global market. The food and beverage industry is one of the significant contributors to the caps and closures market in the United States.
- According to the Drug Enforcement Administration 2019 report, the United States’ largest drug company produced more than 76 billion opioid pills. It has also been observed that about 300 million pain prescriptions were written in 2015. Owing to the high consumption of pain relievers, there is a massive rise in the demand for more bottles, leading to the growth of the plastic caps and closures market. This metric emphasizes the production requirements for the United States, which is expected to drive the growth of the plastic caps and closures market in the North American region.
- Online food delivery in the United States is experiencing an upsurge, owing to the growth in the older demographic population. Population in the age group of 35 – 45 also opt for delivery service for food and bottled medicine, which leads to high growth in the usage of plastics caps and closure for adequate packaging of the food. During 2019, North American plastics product production contracted by 1.3%. While production rose by 1.3% in Canada, production fell 1.6% in the US. This was the first annual decline in the US and for North America as a region since the recession in 2009.
- With the outbreak of COVID-19, the US plastic production is likely to decline in 2020, before recovering in 2021. The production of plastic resins is expected to decrease by 9.8% in 2020, before rising by the same amount in 2021, and the production of plastic products is anticipated to fall by 10.2% in 2020, before rising by 8.3% in 2021, according to the chief economist of PLASTICS. This factor is expected to hamper the plastic caps and closures market. However, sales of consumer essentials at grocery stores and food and beverage stores jumped over 25% in March 2020 in the United States, and this is expected to offset the negative effect on the market.
Key Market Trends
Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth
- The most conventional packaging material for single-serve, non-carbonated bottled water in the United States is polyethylene terephthalate (PET) plastic. According to a study from Verlag W. Sachon, the United States is expected to occupy 15% of the sales volume share of bottled water, worldwide, in 2020. An average American consumes 167 plastic bottles of water per year; owing to such demand for packaged drinking water in the region, there is a rising demand for plastic caps and enclosures, especially PET.
- Meanwhile, in the United States, consumer habits were researched and surveyed by Fabri-Kal to design a lid that would be convenient for on-the-go customers while preventing liquids from splashing during transport. In August 2019, the company manufactured PET-based sip lids for drinks, providing an alternative to straws and specially made to fit recyclable PET and polypropylene drink cups.
- In 2019, the leading retailer of food and grocery in the United States was Walmart, which generated sales numbers of over USD 270 billion that year. Due to the increasing demand for retail and food, the majority of the manufactured food products are packaged in PET containers, which are mostly covered with plastic enclosures to protect them from contamination.
Beverage Segment is Expected to Hold a Major Share
- As the North American beverage market is growing, owing to the high consumption of wines and beer, the packaging components and materials are also adding value through differentiation of products. The United States is the top most consumer of wine, with a 15% global share.
- Various companies in the region are manufacturing plastic caps and closures based on the requirements of government regulations to increase sustainability. For instance, in April 2019, Aptar launched a range of tethered closures that comply with regulations for single-use plastic. The range is designed to meet the requirements of the new European regulation called “Single-Use Plastic” (SUP), as well as the AB 319 California legislation in the US. The regulations have the goal of increasing the number of bottles being collected and recycled, consequently reducing marine litter.
- Due to the increasing dietary concerns with regard to the obesity and sugar intake, soft drink consumption per capita in Canada has been witnessing a steep annual decline, and the volume of soft drinks available for use per person in Canada saw a drop from 82.93 liters in 2010 to 58.28 liters in 2018. In Canda, the retail sales of carbonated soft drinks have been experiencing a decline in numbers since 2013. The volume of soft drinks imported to Canada in 2018 amounted to around 513,940 kiloliters, and for that same year, the volume exported from Canada stood at approximately 171.54 kilolters. These factors are expected to affect the plastic caps and closures market in the region, as the majority of the soft drinks are equipped with plastic caps.
- Also, to increase productivity, various players are planning to build manufacturing facilities in the United States. For instance, Switzerland-based Corvaglia Group created a new manufacturing facility in the US. The company delivers plastic cap and closure technology solutions to the global beverage industry. It is a vertically integrated supplier of caps and closures for PET (polyethylene terephthalate) containers. The company manufactures lightweight, one-piece caps and closures for the North American beverage market.
The North America caps and closures market is quite fragmented, where the sustainable competitive advantage can be gained through innovation in design, technology, and application. The levels of penetration in the market grew significantly over the last decade, aided by the growing demand from the food, beverage, and pharmaceutical industries in the region, and the market is even witnessing certain mergers and acquisitions.
- February 2020 - Silgan Holdings Inc. acquired Cobra Plastics Inc., which manufactures and sells injection-molded plastic closures for a wide variety of consumer products, with a particular focus on the aerosol overcap market. The acquired business, with sales of approximately USD 30 million, currently operates from two manufacturing facilities.
- November 2019 - Closure Systems International (CSI) designed a new 38mm D-KL linerless HDPE closure (38D-KL), with consumer and dairy producer satisfaction in mind. With the improvement in the application performance and drop-down tamper evidence for better security, the closure is engineered to deliver reliable performance on HDPE and PET dairy bottles. CSI’s 38D-KL is commercially available for applications in the non-carbonated cold- and ambient-filled beverages and liquid dairy markets.
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