High Consumption of Beer and Wines to Boost Caps and Closures Market

Effective packaging has become extremely essential so as to give long life to food and beverages. An important part of safe packaging for canisters, bottles, tubes, beverages cartons, and cans is the use of caps and closures. The caps and closures market is estimated to witness a high demand in the near future as there has been a shift in the consumer preference from unpackaged to packaged food products, as they offer more convenience. This shift in preference can be observed especially among the emerging nations of China, India, and Brazil. According to a recently published report by Transparency Market Research (TMR), a market intelligence company, the global caps and closure market will rise from US$36.23 bn in 2014 to US$51.57 bn by the end of 2021, witnessing a modest growth of 5.2% CAGR between 2015 and 2021.

Given below are three important questions regarding the caps and closures market, which experts from TMR answer:

Q. How is the use of plastic benefitting the global caps and closures market?

There has been a steady increase in the use of PET-based disposable bottles. The main reason behind the increase in the uptake of PET based disposable bottles is their light weight and low cost. These benefits of plastic caps and closures have resulted in them being used on gable top, stand-up pouches, and aseptic cartons. Technological advancements are also behind the growth of the use of plastic in caps and closures, as they improve the hot-fill processing. This in turn is creating a favorable environment for the manufacturers of plastic caps and closures.

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Q. What are the challenges faced by manufacturers of caps and closures?

Manufacturers are under the pressure of lowering the cost of caps and closures as flexible packaging is gaining traction and impacting the market. Pouches are one form of flexible packaging, which is becoming increasingly popular owing to their light weight, and since it eliminates the need to use caps and closures, the market is becoming affected. Thus, manufacturers in the caps and closures industries are attempting not only to reduce the cost but also to manufacture light weight caps and closures. This in turn is negatively impacting the quality of caps and closures as they are more prone to cracking. Weak caps and closures can lead to food and beverage contamination and not provide effective sealing and this can further affect the market for caps and closures.

Q. Which application segment is anticipated to lead in the coming years and why?

Among the two applications of caps and closures market for food and beverages, namely alcoholic and non-alcoholic beverage type, the alcoholic beverage segment accounted for 57.35% of the market in 2014. The alcoholic beverages segment is likely to continue to lead in the coming years on account of the high rate of beer being consumed across the globe. The consumption of wines has also increased in recent times and this will also help the market to grow.