Die Cut Lids Market 2017 – 2027
Die-cut lids are attractive and safe packaging solutions that are basically used to increase the shelf-life of the product. They are widely used to package the food products such as curd, milk, yogurts, juices, etc. which are mainly packed in cups and thus require a lid. These lids can be used on the products such as glass, PP, PET, ceramic cups and bottles to prevent microbial contamination. The die-cut lids are produced from plastic, paper, and aluminum foils and are also easy for disposal. They offer convenience at the opening of the food product as they are easy to pull which contributing to the user-friendly nature of the product.
The global die cut lids market is projected to surpass US$ 900 million by the end of 2027, in terms of revenue, growing at CAGR of 6.0% during the forecast period (2019 to 2027).
Growth in the dairy industry around the globe is predominantly fueling the market growth of die-cut lids. According to the Food and agriculture organization of the United Nations, the Global milk output in 2018 is estimated at 843 million tons, an increase of 2.2% from 2017, which is influenced by growth in the production of milk across India, Turkey, the European Union, the United States of America and Argentina.
Expanding organized retail sector around the globe is projected to propel the market growth of the die-cut lids. Due to growing the retail organized retail sector consumer is directly purchasing fermented food products such as yogurt, curd, instant soups, sipping sauces from the supermarkets. This increases product visibility. Thus, growth in the organized retail sector is expected to propel the market growth of die-cut lids.
Regionally, Asia-pacific dominated the global die cut lids market in 2018, reporting 37% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Die Cut Lids Market, Revenue Share (%), By Regions, 2018
The rising popularity of is affecting the demand for die cut lids packaging solution. Die-cut lids do not provide proper physical protection due to which there is a high chance of puncture and thus require very gentle handling throughout the production process which is not in the case of flexible packaging. This factor is expected to restrict the adoption of the die-cut lids which in turn hindering the market growth.
The price factor is another major concern that is restricting the adoption of die-cut lids packaging among manufacturer and this is expected to hamper the market growth over the forecast period.
Rising use of die-cut lids as a new marketing tool for visibility of the brand and to increase the sale of the product is expected to provide enormous growth opportunity to the market of the die-cut lid over the forecast period. Many brand owners utilizing the opportunity to use printed die-cut lids as a promotional medium. Thus, die-cut lids as a new marketing tool are gaining traction in the market and this is projected to foster market growth.
Growth in the food packaging industry is expected to propel the market growth of die-cut lids in the near future. According to the Coherent Market Insights analysis, the global packaged food industry was valued at US$ 2.80 trillion in 2015 and is predicted to reach US$ 3 trillion by 2020, driven by various allied industries such as packaging. This is expected to fuel market growth over the forecast period.
Figure 2. Global Die Cut Lids Market – Opportunity Analysis
The market of die-cut lids is experiencing an ongoing trend of various strategic mergers and acquisitions among major players seeking to expand their business on the global level. For instance, in May 2016, Constantia Flexible took over TR Alucap S.r.l., Italy’s leading dairy lidding company, to improve its brand position in Europe. Hence, the rising number of mergers and acquisitions is expected to augment the market growth over the forecast period.
Growing demand for die-cut lid from health care applications for the packaging of injections and the other drugs is expected to fuel the market growth of the die-cut lid over the forecast period. The growth of the market can also be attributed to the growth of the medical packaging industry around the globe.
Figure 3. Global Die Cut Lids Market, Revenue Share (%), By Wall Material, in 2018
On the basis of end-user industry, food products dominated the global die cut lids market in 2018 with around 80% of market share in terms of revenue, followed beverages and healthcare, respectively.
Figure 4. Global Die Cut Lids Market – Value Chain Analysis
Key players operating in the global die cut lids market are Amcor Limited, Bemis, Inc., Winpak Ltd., Sealed Air Corporation, CLONDALKIN GROUP, Constantia Packaging, Watershed packaging Ltd, Berry Plastics Group, Inc., Uflex Ltd., Tadbik Ltd., and Barger Packaging, Inc.
Few Recent Developments
Die cut lids are the type of packaging which is mainly used to provide protection to the food products from the surrounding atmospheric conditions such as temperature and humidity. Die cut lids also provide convenience to the consumers during opening the packaging. Manufacturers are focusing on developing attractive packaging variants to enhance the aesthetic appeal of die cut lids.
The global die cut lids market has witnessed a surge of growth in terms of revenue in recent past years, owing to shifting consumer preferences for attractive packaging for food & beverages products. Die cut lids can be made from various materials such as plastic, paper, aluminium and other. The surge in growth of food & beverages industry in emerging economies is expected to provide lucrative growth to the global die cut lids market in the forthcoming years.
The global die cut lids market is bifurcated into material type, form type, sealing type, print type, end-user industry, application, and region. On the basis of applications, the global die cut lids market is segmented into cups, bottles, tray, jars, and others. Among regions, Asia-pacific is expected to grow substantially during the forecast period, owing to the rise in growth of population in the region.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.