Aluminum Caps and Closures Market Size

Aluminum Caps & Closures Market Analysis

The aluminum caps and closures market was valued at USD 12.1 billion in 2020 and is expected to reach USD 15.32 billion by 2026 and grow at a CAGR of 4% over the forecast period (2021-2026). Aluminum caps and closures are essential for extending the shelf-life and retaining the taste, flavor, and texture of the packaged products. Besides offering leak-proof and contamination-resistant features, aluminum caps and closures play a vital role in driving visual appeal, brand differentiation, and convenience for consumers.

• Aluminum caps and closures are imperative for the packaging industry, and this serves as the primary driving force for the market's growth. Furthermore, increasing demand for packaged products is anticipated to augment the steady momentum of the global market.
• Also, the beverage industry is one of the major contributors to the aluminum caps and closures market. Various types of aluminum caps are used in beverage packaging, such as crown caps, aluminum ROPP caps, tall aluminum caps, pull ring caps, lugged caps, and others. Carbonated soft drinks, energy drinks, and alcoholic beverages are among the major end-user segments of aluminum caps and closures. Moreover, the use of aluminum closure in the wine industry is becoming predominant, as aluminum screw caps provide better insulation for the wine from oxygen and have cost benefits compared to cork.
• Further, the cosmetic industry is also a prominent user of aluminum caps and closures owing to their lightweight, strong, and durable properties. Due to these properties, aluminum closures are widely used for child-resistant closures (CRC) in cosmetics, such as perfumes, color cosmetics, and skin cosmetics that are harmful to children. For instance, Ball Corporation recently launched an infinitely recyclable aluminum bottle line equipped with reclosable threaded caps.
• Pharmaceutical is the fastest-growing segment that uses aluminum caps and closures due to its barrier and insulating properties, and it can be sealed securely, opened easily, and resealed effectively. Due to the growing market for OTC drugs, especially syrup bottles, aluminum caps, and closures have been witnessing rising demand in the market. For instance, FDA regulations state that "containers, closures, and other parts of drug packages to be suitable for their intended use, must not be reactive, additive or absorptive to the extent that the identity, strength, quality or purity of the drug will be affected ."
• Additionally, The spread of novel coronavirus has augmented the demand for caps and closures in the pharmaceutical market. The growth was especially high in Q1 2020. Pharmacies worldwide reported an increase in their revenues due to 90-day prescriptions and more customers getting involved in panic buying. For instance, The pharmaceutical sector in North America is highly dependent on foreign markets. The onshore production is expected to gain traction due to the United States changed policy of offshore production of medicines post COVID-19 pandemic.