North America Plastic Caps and Closures Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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

Market Snapshot

CAGR
Study Period: 2018 - 2026
Base Year: 2019
CAGR: 3.05 %

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Market Overview

The North American Plastic Caps and Closures Market was valued at USD 11.36 billion in 2020, and it is projected to be worth USD 13.63 billion by 2026, registering a CAGR of 3.05% during the forecast period (2021-2026). With the outbreak of COVID 19, the plastic caps and closure market in the North American region is expected to witness growth. Also, the plastic caps and closure manufacturers have been flooded with a pool of issues that are expected to be only for the short-term. Some of the effects of lockdown include lack of availability of raw materials used in the manufacturing process, supply chain disruptions, fluctuating prices, labor shortages that could cause shipping problems, production of the final product to inflate and go beyond budget, etc.

  • Plastic caps and closures are essential for extending the 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, the United States' 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 the 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 closures 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 by 1.3%. While production rose by 1.3% in Canada, production fell 1.6% in the US. This was the first annual decline in the US and for North America as a region since the recession in 2009.

Scope of the report

The report on the North American plastic caps and closures market studies various segments that are part of manufacturing different materials, which include polyethylene, polyethylene terephthalate, polypropylene, and other types of materials, and types, including threaded, dispensing, unthreaded, and child-resistant. The end-user industries for the North American plastic caps and closures market include beverage, food, pharmaceuticals and healthcare, cosmetics and toiletries, household chemicals, and other end-user industries.

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

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Key Market Trends

Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth

  • Polyethylene terephthalate (PET) is often used in food packaging due to its strong barrier properties against water vapor, gases, dilute acids, oils, and alcohols. PET is also shatter-resistant, moderately flexible, and easy to recycle. According to Earth Day organizers, 1 million plastic bottles are purchased in the US every minute. An average American consumes 167 plastic bottles of water per year; owing to the demand for packaged drinking water in the region, there is a rising demand for plastic caps and enclosures, especially PET.
  • The most recycled plastic in the United States is PET. According to PET Resin Association (PETRA), approximately 1.5 billion pounds of used PET bottles and containers are collected in the US each year for recycling. According to National Association for PET Container Resources (NAPCOR), the US recycling rate for polyethylene terephthalate (PET) bottles dipped slightly in 2019 to 27.9%. Higher recycling rates in Canada pushed the total North American PET recovery to 35%.
  • The increase in the demand for PET caps and closures is also a consequence of the rise in PET packaging, such as containers, bottles, tubes, cans, etc. According to International Bottled Water Association (IBWA), the volume of bottled water packaged in Polyethylene terephthalate (PET) plastic grew by 4.76% in the year 2020. It is now at 10.6 billion gallons. However, the home and office delivery volume experienced a decrease of 3.41 % (is now at 1.4 billion Gallons), likely due to office closures that occurred during the COVID-19 Pandemic.
  • In July 2020, Nestlé Waters North America (NWNA) announced that three more of its US domestic still water brands have started to convert their packaging to 100% recycled plastic. Ozarka Brand 100% Natural Spring Water, Deer Park Brand 100% Natural Spring Water, and Zephyrhills Brand 100% Natural Spring Water packaging, which has long been 100% recyclable, will now be both 100% recyclable and made from 100% recycled plastic. With the expansion of recycled plastic (rPET) to these brands, nearly 60% of all households in the US will have access to regionally distributed spring water brands in bottles made entirely with recycled plastic.
Plastic IMPO graph.png

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Beverage Segment is Expected to Hold a Major Share

  • As the North American beverage market is growing, owing to the high consumption of wines and beer, the packaging components and materials are also adding value through differentiation of products. 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 regulations to increase sustainability. For instance, in April 2019, Aptar launched a range of tethered closures that comply with regulations for single-use plastic. The range is 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 US. The regulations have the goal of increasing the number of bottles being collected and recycled, consequently reducing marine litter.
  • Due to the increasing dietary concerns with regard 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 have been experiencing a decline in numbers since 2013. The volume of soft drinks imported to Canada in 2018 amounted to around 513,940 kiloliters, and for that same year, the volume exported from Canada stood at approximately 171.54 kilolters. 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 global beverage industry. It is 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.
North America 2.png

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Competitive Landscape

The North American 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 penetration in the market grew significantly over the last decade, aided by the 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. 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.

Recent Developments

  • June 2020 - Closure Systems International, Inc. launched a new closure 38D-KL for the dairy beverages manufactured with HDPE raw material and is manufactured with improved application performance and tamper-evident dropdown. The product is suitable for sustainable packaging with 40% post-consumer recycled content from its PolyCycle PCR resin.
  • January 2020 - Silgan and Albea entered a binding offer for Silgan to acquire Albea’s global Dispensing Systems business as well as its Metal and Brazil clusters. The combination would leverage the expertise of Silgan’s Closure segment focused on food, beverage, home care and personal care, and Albea’s Dispensing System, focused on beauty and skin care, to bring in innovative solutions.

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 DYNAMICS

    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

      1. 4.4.1 Increased Demand for Innovative Solutions from Different End Users

    5. 4.5 Market Restraints

      1. 4.5.1 Stringent Regulation on Manufacturers Pertaining to Environmental Degradation

      2. 4.5.2 Lightweight And Cost-effective Stand-up Pouch Packaging Alternatives

    6. 4.6 Assessment of the impact of Covid-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Material

      1. 5.1.1 Polyethylene (PE)

      2. 5.1.2 Polyethylene Terephthalate (PET)

      3. 5.1.3 Polypropylene (PP)

      4. 5.1.4 Other Types of Materials

    2. 5.2 Type

      1. 5.2.1 Threaded

      2. 5.2.2 Dispensing

      3. 5.2.3 Unthreaded

      4. 5.2.4 Child-resistant

    3. 5.3 End User Industry

      1. 5.3.1 Beverage

        1. 5.3.1.1 Bottled Water

        2. 5.3.1.2 Soft Drink

        3. 5.3.1.3 Spirits

        4. 5.3.1.4 Other Beverages

      2. 5.3.2 Food

      3. 5.3.3 Pharmaceutical and Healthcare

      4. 5.3.4 Cosmetics and Toiletries

      5. 5.3.5 Household Chemicals (Detergents, Cleaners, Soaps, and Polishes)

      6. 5.3.6 Other End User Industries

    4. 5.4 Country

      1. 5.4.1 United States

      2. 5.4.2 Canada

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Albea SA

      2. 6.1.2 Silgan Holdings Inc.

      3. 6.1.3 Amcor PLC

      4. 6.1.4 Closure Systems International Inc.

      5. 6.1.5 AptarGroup Inc.

      6. 6.1.6 Trimas Corporation

      7. 6.1.7 Guala Closures Group

      8. 6.1.8 Berry Global Inc.

      9. 6.1.9 Tetra Pak International SA

      10. 6.1.10 MJS Packaging

      11. 6.1.11 O. Berk Company LLC

      12. 6.1.12 Bericap Holding

  7. 7. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The North America Plastic Caps and Closures Market market is studied from 2018 - 2026.

The North America Plastic Caps and Closures Market is growing at a CAGR of 3.05% over the next 5 years.

Albea S.A., Silgan Holdings Inc., Amcor PLC , Closure Systems International Inc. , Berry Global Inc. are the major companies operating in North America Plastic Caps and Closures Market.

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