Caps and closures market to reach $68bn by 2021
According to MarketsandMarkets research, the market for caps and closures will grow from $49.78 billion in 2015 to $68.71 billion by 2021 at a compound annual growth rate of 5.62%.
Factors such as increasing demand in Asia-Pacific, growing demand from the food and beverage industry, and rising concerns about product quality and safety are some of the drivers for the growth of the caps and closures market, the research company said.
The beverages segment dominated the market in 2015 and is projected to be the second-fastest growing end-user industry – after pharmaceuticals – in the next five years, as a result of rising consumer demand for beverage products such as bottled water and beer, as well as growing demand for safe, high-quality products.
The plastics segment is projected to contribute the largest market share due to its lightweight and cost-effective credentials, with polypropylene’s resistance to stress and almost all types of chemicals setting it in good stead to be the fastest-growing sub-segment of the plastic caps market.
The Asia-Pacific region leads the market due to its large population and proven position as a major manufacturing hub that offers production opportunities at affordable costs to companies. As caps and closures are used widely by different industries – including food and beverages – the Asia-Pacific region, which is witnessing major growth in these sectors itself, has become a large market for the packaging.
It is followed by North America, which is the next largest market for caps and closures, ahead of Europe and the rest of the world.
