Market Trends of United States Plastic Caps And Closures Industry
Polyethylene (PE) to be the Fastest Growing Raw Material Segment
- Polyethylene (PE) stands as one of the most durable plastics available today, exhibiting resistance to chemicals and boasting a low cost. Derived from petroleum polymers, PE can withstand various environmental hazards, typically categorized as high-density polyethylene (HDPE) and low-density polyethylene (LDPE).
- HDPE and LDPE represent the primary materials used in caps and closures. HDPE variants find extensive use in water, dairy, and juice bottles, favored for their excellent organoleptic properties, particularly in water bottle closures due to their long-standing preference. Renowned for strength and durability, HDPE plastics can also be color-matched, commonly found in white. Its adaptability and durability position HDPE as a top choice for cosmetic bottles.
- Borealis notes that the growth in HDPE caps and closures is largely attributed to replacing metal caps on glass bottles (replaced by PET) and shifting consumption patterns favoring smaller bottles for refreshments.
- According to the American Chemistry Council, in 2022, the United States produced 22.62 billion pounds of HDPE, 8.35 billion tons of LDPE, and 23.31 billion tons of LLDPE, with a significant portion allocated to the packaging sector. Injection molding technology, particularly influential in the LDPE segment, contributes to producing medical devices, caps, and closures.
- Presently, due to its strength and cost-effectiveness, many industries in the United States prefer HDPE over LDPE. HDPE's rigidity makes it an ideal packaging choice for impact-resistant goods. The chemical industry emerges as a major consumer, propelling the market's growth.
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Beverage Segment to Hold Major Market Share
- Caps and closures play a crucial role in sealing containers, pouches, and bottles within the beverage industry, encompassing both carbonated and non-carbonated drinks. They serve to safeguard against foreign particles and preserve the flavor and taste of beverages. Applications in the beverage market span bottled water, fruit juices, ready-to-drink, and energy drinks.
- The escalating demand for single-serve beverages, coupled with the hot fill process that extends the shelf life of packaged drinks, is set to propel growth in the United States caps and closures market. Companies favor plastic bottles for hot fill processes as they eliminate the need for preservatives, enhancing the drink's health quotient. Notably, the advantages of hot-fill plastic bottles include extended product shelf life and preservative-free content, alongside their lightweight composition and cost-effectiveness due to their plastic composition.
- As various hot-fill processes become commonplace in the beverage industry, hot-fill plastic bottles are increasingly prevalent. The rising prominence of hot-fill applications, particularly in the ready-to-drink segment, is anticipated to drive market growth.
- The market for sports caps is expanding alongside the increasing demand for bottled water and energy drinks. Despite their weight, sports closures offer tamper-evident features. Diverse sports closure designs vary not only in aesthetics and neck diameters but also in their tamper-evident solutions, catering to cold, dry, or wet aseptic filling requirements. According to Beverage Digest, sports drinks in the United States achieved sales volumes of approximately 1,283 million 192-oz. cases in 2022.
- In January 2023, Nestlé, a major player in the food and beverage industry, announced a USD 43 million expansion at a Wisconsin factory to boost capacity for its Boost and Carnation Breakfast Essentials ready-to-drink (RTD) products. This investment by Nestlé Health Science aims to enhance manufacturing facilities to meet the needs of both patients and consumers.
Another influential trend impacting beverage closures is the rise of eCommerce. The convenience of online shopping presents an opportunity for companies to access new consumers and cater to the growing demand for at-home delivery. Consequently, an increasing number of food and beverage sales are transitioning to direct-to-consumer eCommerce platforms.
