Caps & closures market to be worth $56.6 Billion by 2018
According to the market research report "Caps & Closures Market by Raw Material (Plastic, Metal & Others), Applications (Food, Beverage, Personal Care & Home Care, Pharma & Industrial), Types (Plastic: Screw, Dispensing, Metal: Screw & Lug, Can Ends, Others) - Global Trends & Forecast to 2018" from MarketsandMarkets (MarketsandMarkets.com), the caps & closures market is estimated to grow from $42.7 billion in 2012 to $56.6 billion by 2018 with a CAGR of 4.8% through 2018. Asia-Pacific led the global market followed by North America and Europe in terms of revenue in the year 2012.
Caps & closures is a dynamic sector in the packaging industry with various stake holders such as raw material suppliers, processors, packaging manufacturers, and end-user industries such as manufacturers of food, beverage, personal care products, and pharmaceuticals. As opportunities to grow in these end-use markets are immense, players are competing to launch innovative products and diversifying their product portfolio. The end-use industries and their caps & closures are interdependent markets. Shift in end-use industry in terms of new product developments, new packaging types or industry growth will directly affect the Caps & Closures Market. Rise in the consumption of packaged products offers a strong customer base for the Caps & Closures Market. Packaging is essential to preserve the quality of the product and it also prevents it from chemical reactions endangering the consumer's health. Hence, an efficient and suitable packaging is imperative for every product driving up demand for closures.
Plastic: Dominant, Exhibiting Strong Growth
The important materials used in Caps & Closures Market are plastics (polyethylene, polypropylene), metal (aluminum, tin), paper, rubber, and cork. These raw materials are converted using various molds to manufacture different types of closures to be used in end-use applications. Consumer preferences, product characteristics, and material compatibility are essential in determining the type of material to be used. Plastic is the dominant raw material used due to its characteristics and various cost benefits offered. The adoption of plastic closures has been high and is highly penetrated in the important end-use applications.
Asia-Pacific: Significant Market Share Holder and Driver
Asia-Pacific has the highest market share and is estimated to grow with the fastest CAGR during the period under review. Europe is growing at a modest rate, and is driven mainly by the East European countries. ROW is also expected to experience growth in the Caps & Closures Market in the future. The ROW is projected to exhibit rapid growth during the period under review. The four most potential nations for Caps & Closures Market are India, China, Russia, and Brazil which are poised to exhibit the fastest growing trend
Beverage: Biggest Market by Applications; Pharmaceutical Closures Exhibit the Fastest Growth
In the Caps & Closures Market, pharmaceutical end-use is the fastest growing market during the forecasted period. Due to the increased awareness for public health, increasing product processing units, convenience packaging, and rising consumption of generic drugs, the pharmaceutical packaging industry is exhibiting strong gains. Following it, the personal & home care segment is estimated to be the second fastest growing market in 2013. Growing awareness, higher disposable incomes, and changing lifestyles drive the market for end-use applications ramping up the demand for closures.
The report also studies various other important aspects pertaining to the market such as Porter's analysis, competitive landscape, price analysis of raw materials, and supply chain. In addition, 18 key players of this market have also been profiled.