Die Cut Lids Market to Surpass US$ 900 million by 2027 - Coherent Market Insights

Die-cut lids are widely used across the packaging of food to provide food protection. They are advanced packaging solutions with attractive printing and embossing for food products such as curd, yogurt, milk, and juices. The die-cut lids can be used on PP, glass, PET, ceramic cups and bottles that prevent the contamination of the food product. These lids are produced from plastic, paper, and aluminum foils. Moreover, its use makes easy disposal and is gaining huge demand from the food and beverage industry that utilizes cups, trays, and boxes for the packaging. Furthermore, the use of these lids also enhances the shelf-life of the dairy products thus maintain the freshness for a longer time. They are also used in the packaging of dipping sauces, instant soups, and desserts.

The global die cut lids market was estimated to be valued around US$ 600 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 6.0% during the forecast period (2019 to 2027)

Drivers

The rise in the middle-class population coupled with the increasing disposable income of the population across the Asia Pacific region is expected to augment the market growth of die-cut lids. According to the World Economic Forum, by 2020 Asia’s GDP will overtake the GDP of the rest of the world and by 2030, the region is projected to contribute roughly 60% of global growth. Moreover, Asia-Pacific is also contributing to the majority (90%) of the 2.4 billion new members of the middle class entering the global economy.

Market Opportunities

Increasing spending’s on processed food by the consumer is expected to offer immense growth opportunities to the market of the die-cut lids. According to the United States Department of Agriculture Economic Research Service, in 2018, Americans spent an average of 9.7% of their disposable personal incomes on food—divided between food at home (5.0%) and food away from home (4.7%). Therefore, growing expenditure on food products is expected to augment the market growth.

Market Restraints

Disposal of the packaged product which is made up of plastic has a negative impact on the environment as well as the health of the human. Plastic is not good for the environment in terms of disposing of as they do not degrade and leave a negative mark on the environment. This factor is also expected to hamper the market growth of the die-cut lids over the forecast period.

Key Takeaways

On the basis of material type, aluminum dominated the global die cut lids market in 2018 with around 69% of market share in terms of revenue, followed plastic and paper, respectively.

Market Trends

Growing consumer preferences for lightweight and sustainable packaging products is expected to accelerate market growth. The rising popularity of plastic lids composed of PET as the best alternative to aluminum lids is also expected to augment the market growth. Moreover, increasing the use of recycled or bio-based materials for sustainability is further expected to foster market growth.

Increasing demand for meat and poultry products is expected to stimulate the market growth of die-cut lids over the forecast period. According to the North American Meat Institute, the meat and poultry industry is the largest industry of U.S. agriculture. The meat production was 52 billion pounds in 2017 and poultry production was 48 billion pounds in 2017. Hence, growing production of meat products are expected to propel the market growth.

Competitive Section

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

Bemis Company, Inc.

• In May 2016, Bemis Company, Inc. acquired the packaging operations of SteriPack Group based in Ireland, which specializes in medical device packaging
• In March 2016, the company received the Highest Achievement Award from the Flexible Packaging Association 

Uflex Ltd.

• In April 2017, Uflex Ltd. was honored as the ‘Asia’s Most Trusted Flexible Packaging Solutions Company’ by the International Brand Consulting Corporation (U.S.)
• In February 2017, the company collaborated with Comiflex for increasing its manufacturing capability
• In October 2016, it released ultra-thin AlOx packaging films with high barrier properties

Market Taxonomy

By Material

• Paper
• Aluminum foil
• Plastic
• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polypropylene (PP)
• Others

By Form Type

• Reel Lids
• Pre-Cut Lids

By Sealing Type

• Heat Seal
• Sealant Coating

By Print Type

• Printed
• Unprinted

By End Use Industry

• Food Products
  • Dairy & Dairy Products
    • Milk
    • Ice Cream
    • Custard
    • Yogurt
    • Cheese & Sour cream
    • Margarine & Butter
  • Sauces, Dips, and Dressings
  • Meat, Poultry & Seafood
  • Ready to Eat Meals
  • Coffee
  • Others (Dry fruit, Snacks, etc.)
• Beverages
  • Juices
  • Flavored Drinks
  • Water
  • Others (Energy Drinks, etc.)
• Health Care Applications
• Other Applications (Chemicals, Solvents, etc.)

By Application

• Cups
• Tray
• Bottles
• Jars
• Other Containers (Pots)

By Regions

• North America
• Latin America
• Europe
• Asia-Pacific
• Middle-East & Africa