China Plastic Caps and Closures Market Size

Chinese Plastic Caps & Closures Market Analysis

The Chinese plastic caps and closures market is expected to grow by registering a CAGR of 4.1% during the forecast period. A growing population with a rise in consumption of ready-to-eat food and drinks is driving the growth of the caps and closures market in the country.

• China is among the largest consumers of plastics globally. The abundant availability of raw materials and low cost of production has been supporting the production growth of the engineering plastics, such as PET, in the country for the past few years. For instance, according to the National Bureau of Statistics of China, the country's production volume of plastic products in 2021 amounted to 80 million metric tons, an increase of 5.27% from 2020. Also, according to Plastics Europe, China accounted for 32% of global plastic materials production, which made it the world's largest plastic producer in 2021.
• As China's requirement for plastic bottles continues to expand owing to the growing population, increasing urbanization, and substitution of many metals in various industries, such as automotive, consumer appliances, etc., the demand for caps and closures is also increasing side-by-side. Also, the growing consumption of single-serve beverages is anticipated to propel growth. For instance, according to Industrial Media, LLC, consumers in China (75%) drink carbonated soft drinks during mid-afternoon, and nearly half (52%) of consumers drink carbonated soft drinks at work, which is anticipated to support growth for China caps and closure market.
• The Chinese plastic caps and closures market depends on innovative packaging solutions and the increasing disposable income of consumers in the region. Technological advancements in plastic packaging have brought about innovations in the industry. With many companies making significant investments in R&D to develop unique and cost-effective products, innovations in this market are on the rise.
• However, fluctuating raw material prices, along with the increasing regulation on the usage of pet bottles/caps in pharmaceutical drugs and food packaging, are anticipated to hinder market growth in the projected time frame.
• The outbreak of COVID-19 has significantly impacted China's food supply chains and demand. Additionally, it has changed how consumers behave across multiple aspects, from shopping for groceries to traveling to purchasing luxury goods. The shift towards online grocery shopping is expected to sustain during the post-COVID period, which will likely drive the market's growth during the forecast period.