Report

The Global Metal Caps And Closures market size is expected to grow from USD 22.99 billion in the previous year to USD 27.14 billion in the next five years, registering a CAGR of 3.38% during the forecast period. Metal caps and closures provide rigidity and stability while portraying a superior product image to the consumers in the market.

Key Highlights
-The market for metal caps and closures is predicted to expand rapidly during the forecast period due to the increased demand for food and beverages. There is a rising demand for alcoholic drinks, beer, bread, poultry and fish, ready-to-eat meals, dairy goods, etc. Moreover, due to plastic regulations, soft drink packaging vendors prefer metal crown caps for beverage packaging, driving the market growth.
-The growing concerns regarding the usage of environment-friendly products have boosted the adoption of metal caps and closures. Though plastic-based caps pose a high threat to metal caps, the plastic caps market is witnessing high threats regarding environmental problems. This has been creating the opportunity for metal caps and closures. Several companies in recent years have been replacing their plastic-based caps and closures with metal.
-Further, metal caps and closures can be branded with logos or other designs, increasing demand for them by promoting the distinctive brand. Moreover, the adaptable crown caps are composed of a unique metal that gives the optimum fit when combined with a threaded bottleneck. Crown caps are reasonably priced, very functional, simple to use, allow for high-speed application, and provide genuine tamper protection.
-Metal caps and closures are also often utilized in the pharmaceutical industry since they are sterile and typically made of multilayer materials. The most common metal caps used in the industry are comprised of steel and aluminum. Additionally, aluminum is made in various variations, including plain or embossed, colored, or natural. As a result, pharmaceutical packaging may be provided in accordance with consumer demand. The market for child-resistant, value-added, and senior-friendly closures is expected to be driven by the rapidly expanding pharmaceutical industry as well as regulatory reforms, which have encouraged manufacturers to produce superior-quality caps and closures.
-However, the presence of other closure systems made of plastics, wood, etc., is expected to act as a restraint and challenge the growth of the metal closures market over the forecast period.
-The food and beverage industry, with a major share in the metal caps and closures market, witnessed huge demand amidst the COVID-19 pandemic as the industry fell under the essential commodity. There was an increasing demand for packaged food products, meat, vegetables, and fruits, among others. Consumer behavior was to undoubtedly continue to change in the forecast period as the market simultaneously acclimated more to the current scenario. Thus, the post-COVID-19 future for the metal caps and closures market looks promising in terms of demand.


Metal Caps & Closures Market Trends

Pharmaceutical Application Offers Potential Growth


- Metal caps and closures are predominantly used in the pharmaceutical sector as they are sterile and are generally composed of layered material. Metals caps made of steel and aluminum are mostly used in the sector. Besides, aluminum can be highly customizable: natural or colored, plain or embossed. Thus, pharmaceutical packaging can be supplied according to the consumers' needs.
- The rapidly growing pharmaceutical sales and production and the regulatory changes further favor child-resistant, value-added, and senior-friendly closures, which are anticipated to drive the market in the foreseen period. The World Health Organization (WHO) estimated that one-third of all medicines sold worldwide are illegitimate. The increasing risks from falsified drugs are creating the need for efficient anti-counterfeiting solutions, boosting the adoption of anti-counterfeiting closures.
- The adaptation of aluminum closures in the pharmaceutical industry is on the rise, as its rubber counterparts tend to contaminate the drugs. The contamination is attributable to elastomeric container closure components. Possible contaminants include microorganisms, endotoxins, and chemicals. In the fiscal year 2022, 912 drug recalls were generated by 166 manufacturing sites, marking the highest number of recalls in the past five years.
- The data indicates that the largest defect group for these recalls remains current good manufacturing practice (CGMP) deviations, as reported in previous years by CDER. The majority of the products were recalled due to issues with temperature control and storage in warehouses. The report highlights the fact that these conditions can cause degradation of the product, leading to a negative impact on its shelf-life, safety, or effectiveness.
- Further, the demand for metal caps and closures may witness a few challenges in the syrup bottle sector owing to the regulations prevailing in their usage. Herbal medicinal products (HMP) have recently gained importance and are extensively used to prevent and treat various ailments.


Asia-Pacific to Witness the Fastest Growth


- Asia-Pacific is expected to witness the fastest growth because of the presence of two highly populated countries, i.e., China and India. In these two countries, the increase in disposable income will supplement the growth of the metal caps and closures market.
- The Indian beverage sector, consisting of alcohol, is one of the most diverse sectors. The industry is highly influenced by the country's vast geography associated with the weather. With it comes the imperative of packaging function to contain beverages, enabling transportation, and protecting beverages against mechanical stress and material loss. According to a study performed by Banco do Nordeste, alcohol consumption in India was 4.86 billion liters in 2020. The consumption is expected to reach 6.21 billion liters in 2024.
- China's spirits market is expanding continuously, leading to a high demand for packaging solutions. Such turnover represents an enormous opportunity for domestic producers in Chinese beverage packaging. Foreign investors have recognized the huge potential of such a market segment. Moreover, the growing import value of alcoholic drinks from China has boosted the market for caps and closures for beverages. Recent data published in October 2022 showed that China exported nearly USD 3 million of wine and liquor to North Korea from July to September, according to Chinese customs data.
- The trend for sustainable beverage packaging is accelerating in Southeast Asia, buoyed by greater consumer awareness of sustainability and increased focus by various stakeholders, with governments incentivizing a shift towards a circular economy and manufacturers focusing on recycling, packaging reduction, and the adoption of more sustainable packaging alternatives. Some manufacturers are opting to replace plastics with more sustainable materials.
- The vast rise in the demand for packaged foods and beverages and the critical role played by caps and closures in keeping packaged consumables fresh for extended periods are likely to boost the market in these regions.


Metal Caps & Closures Industry Overview

The global metal caps and closures market is highly fragmented and competitive due to the presence of international vendors. Some of the key players in this market are Crown Holdings, O.Berk Company, Guala Closures S.P.A., and Amcor P.L.C., amongst others. Intense competition prevails in the market in terms of product differentiation, portfolio, and pricing. The rising demand for value-added closures and tamper resistance properties will augment the usage of metal caps and closures in various segments, primarily pharmaceuticals and beverages.

In July 2022, Guala Closures, a company that produced closures for various types of bottles, acquired Labrenta, a high-end closure specialist based in Vicenza. This acquisition was crucial for Guala Closures as it helped the company expand its reach in the luxury segment, thus making it a world leader in the industry.

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