U.S. caps & closures market to surpass US$ 4504.2 million by 2027
Caps and closures are used to keep the container close and seal in order to protect the quality of the product and increase its self-life. They are mainly used in the packaging industry as it prevents the entry of dust, moisture, and keep the product safe and secure from spoilage and damage. Caps and closures are produced from the different materials and can be used with almost all types of containers used to package beverage. On the basis of cap type, the market is classified into screw caps, Snap-On caps, and push on caps. Energy drinks, non-dairy milk, Fruit beverages, Ready to drink (tea & coffee), and Sports beverages are some of the major applications of the caps and closures in the non-carbonated beverage.
Accoring to a market analysis by Coherent Market Insights, the U.S. caps & closures market is estimated to account for US$ 3,209.9 Mn in terms of value and 117,506Mn Units in terms of volume by the end of 2020.
Driver
Growing demand for convenient and small packaging bottles is expected to propel the growth of the U.S. caps & closures market. Rising popularity of easier to open, flow-control, handstand packs, and clean dispensing is encouraging manufacturer to introduce handy and small packaging bottles. Moreover, expanding application across aseptic carton and standup pouch is also projected to fuel the market growth over the forecast period.
Opportunity
Increasing penetration of smaller brands in the U.S. beverage market to provide a potential opportunity to the market of caps and closure. According to the Coherent Market Insights analysis, the bigger brands in the U.S. beverages market are estimated to occupy ~58% share in terms of value in 2016. Share of bigger brands is further projected to shrink as a cumulative growth impact and ever-increasing penetration of smaller brands. By 2020, the value-wise share of smaller brands is forecast to represent close to 50% of total industry revenue in the country.
Restraint
Sealing breaches and regulations by FDA could impact the market growth negatively over the forecast period. The caps and closure not only seals the container, but it also preserves its product contents from piracy and follows technical demands imposed by the government and authorities. Furthermore, non-carbonated drinks such as energy drinks and their labelling, packaging, and ingredients are regulated by the U.S. food and drug administration (FDA) which is further projected to hamper the growth of caps & closures market for non-carbonated beverages in the U.S.
Key Takeaways
On the basis of cap type, screw caps dominated the U.S. caps & closures market in 2019 with around 84% of market share in terms of revenue, followed flavoring snap on caps and push on caps, respectively.
Market Trends
The beverage closure manufacturers are looking for suppliers that can provide them with a complete system designed specifically for closure manufacturing that entails machine, hot runner and temperature controller, complete melt stream control. The complete system is useful for manufacturing high-quality parts, lightweight closures, obtaining higher yields, reducing scrap waste, and tighter tolerances. Thus, this trend is expected to accelerate market growth.
Various manufacturers are adopting growth strategies such as partnership and agreement in order to increase the production capacity of caps & closures. This will propel the market growth of caps &closure in the U.S market. For instance, in April 2019, Bericap and Thinfilm headquarters in San Jose, California, have entered into a strategic partnership encompassing innovation, integration, and implementation of Thinfilm’s NFC-enabled solutions. The collaboration will embed advanced chips into closures to create dependable and cost-effective solutions for brand protection and authentication purposes.
