North America Plastic Caps and Closures Market - Growth, Trends, and Forecasts (2020 - 2025)

The North America Plastic Caps and Closures Market is segmented by Material (Polyethylene, Polyethylene Terephthalate, Polypropylene, and Other Types of Materials), Type (Threaded, Dispensing, Unthreaded, and Child-Resistant), End-User Industry (Beverage, Food, Pharmaceutical and Healthcare, Cosmetics and Toiletries, Household Chemicals and Other End-user Industries) and Country.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

8 %

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Market Overview

The North America Plastic Caps and Closures Market is expected to grow at a CAGR of 8 % over the forecast period 2020 to 2025. Plastic caps and closures are essential for extending shelf-life, and retaining the taste, flavor, and texture of the packaged product. 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, America's 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 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 closure 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 1.3 percent. While production rose by 1.3 percent in Canada, production fell 1.6 percent 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, United States plastics production is likely to decline in 2020, before recovering in 2021. The creation 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 8.3% in 2021 according to the chief economist with 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.

Scope of the report

The report on the North America plastic caps and closures market studies various segments that are part of manufacturing different types of materials, which include Polyethylene, Polyethylene Terephthalate, Polypropylene, and Other Types of Materials and Types including Threaded, Dispensing, Unthreaded, and Child-Resistant. The end-user industry of the North America plastic caps and closure market includes beverage, food, pharmaceuticals and healthcare, cosmetics and toiletries, and other end-users, household chemicals, and other end-user industries.

By Material
Polyethylene (PE)
Polyethylene Terephthalate (PET)
Polypropylene (PP)
Other Types of Materials
By Type
Threaded
Dispensing
Unthreaded
Child-Resistant
By End-User Industry
Beverage
Bottled Water
Beer
Spirits
Other Beverages
Food
Pharmaceutical and Healthcare
Cosmetics and Toiletries
Household Chemicals (Detergents, Cleaners, Soaps, and Polishes)
Other End-user Industries
By Country
United States
Canada

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Key Market Trends

Polyethylene Terephthalate (PET) is expected to witness significant growth rate

  • 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. The 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 especially PET plastic caps and enclosures.
  • 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 Aug 2019, the company manufactured PET-based Sip lids for food drinks, which gives an alternative to straw and is 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 PETcontainers, which are mostly covered with plastic enclosures to protect them from contamination.

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Beverage is expected to hold major share

  • As the North American beverage market is growing following with higher consumption of wines and beer, the packaging components and materials are also adding value differentiation with evolving demands. 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 regulation to increase sustainability. For instance, in April 2019, Aptar launches a range of Tethered Closures that comply with single-Use plastic regulation. It has been 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 USA. The regulations have the goal of increasing the number of bottles being collected and recycled, consequently reducing marine litter.
  • Due to increasing dietary concerns with regards 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 are experiencing a decline in numbers since 2013. The volume of soft drinks imported into Canada in 2018 amounted to around 513,940 kiloliters, and for that same year, the volume exported from Canada stood at approximately 171.54 kilometers. 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 beverage industry around the world, which are 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.

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Competitive Landscape

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 market penetration for the plastic caps and closure have grown significantly over the last decade, aided by 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. has 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 located near one another in Macedonia, Ohio.
  • November 2019 - Closure Systems International (CSI) is 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 a non-carbonated cold- and ambient-filled beverages and liquid dairy markets.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

    5. 4.5 Market Restraints

  5. 5. IMPACT OF COVID-19 ON PLASTIC PACKAGING INDUSTRY

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Material

      1. 6.1.1 Polyethylene (PE)

      2. 6.1.2 Polyethylene Terephthalate (PET)

      3. 6.1.3 Polypropylene (PP)

      4. 6.1.4 Other Types of Materials

    2. 6.2 By Type

      1. 6.2.1 Threaded

      2. 6.2.2 Dispensing

      3. 6.2.3 Unthreaded

      4. 6.2.4 Child-Resistant

    3. 6.3 By End-User Industry

      1. 6.3.1 Beverage

        1. 6.3.1.1 Bottled Water

        2. 6.3.1.2 Beer

        3. 6.3.1.3 Spirits

        4. 6.3.1.4 Other Beverages

      2. 6.3.2 Food

      3. 6.3.3 Pharmaceutical and Healthcare

      4. 6.3.4 Cosmetics and Toiletries

      5. 6.3.5 Household Chemicals (Detergents, Cleaners, Soaps, and Polishes)

      6. 6.3.6 Other End-user Industries

    4. 6.4 By Country

      1. 6.4.1 United States

      2. 6.4.2 Canada

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Albea S.A.

      2. 7.1.2 Silgan Holdings Inc.

      3. 7.1.3 Amcor PLC

      4. 7.1.4 Closure Systems International Inc.

      5. 7.1.5 AptarGroup Inc.

      6. 7.1.6 Trimas Corporation

      7. 7.1.7 Guala Closures Group

      8. 7.1.8 Berry Global Inc.

      9. 7.1.9 Tetra Pak International SA

      10. 7.1.10 MJS Packaging

      11. 7.1.11 O. Berk Company LLC

  8. *List Not Exhaustive
  9. 8. FUTURE OUTLOOK OF THE MARKET

** Subject to Availability

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