Caps and closures are used to seal containers in order to protect the quality of the product stored and increase its shelf-life. They are mainly used in the packaging industry as they prevent the entry of dust and moisture, thus keeping the product safe and secure from spoilage and damage. Caps and closures are produced from different materials including metals, rubber, plastics, and paperboard. They can be used with almost all types of containers to package beverages. 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 caps and closures in the non-carbonated beverage segment.
U.S. caps & closures market is estimated to be valued at US$ 5599.4 Mn in terms of volume by the end of 2030.
Drivers
The growing demand for convenient and small packaging bottles is expected to propel the growth of the U.S. caps and closures market. The rising popularity of easy-to-open, flow-control, handstand packs, and clean dispensing is encouraging manufacturer to introduce handy and small packaging bottles. Moreover, expanding applications across aseptic cartons and standup pouches is also projected to fuel the market growth over the forecast period.
Market Opportunities
The increasing penetration of smaller brands in the beverage market in the U.S. will potential opportunities to the U.S. caps and closures market. According to the Coherent Market Insights analysis, the key brands in the U.S. beverages market occupies over 58% shares in 2020. The ever-increasing penetration of smaller brands in the market is projected to hamper the growth of these key brands. By 2020, the value-wise share of smaller brands was over 50% of the total industry revenue in the country.
Restraints
Sealing breaches and regulations by US FDA may hinder the market growth over the forecast period. Caps and closures not only seal the container, but they also preserve the product contents from piracy and follow technical demands imposed by the government and other concerned authorities. Furthermore, non-carbonated drinks, such as energy drinks and their labeling, packaging, and ingredients, are regulated by the U.S. Food and Drug Administration (FDA) which is further projected to hamper the growth of the U.S. caps & closures market for non-carbonated beverages.
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Key Takeaways:
On the basis of cap type, screw caps dominated the U.S. caps and closures market in 2022 with around 84% of the market share in terms of revenue, followed by flavoring snap-on caps and push-on caps.
Market Trends
Beverage closure makers are searching for vendors that can deliver a comprehensive system built exclusively for closure manufacturing, including a machine, hot runner and temperature controller, and complete melt stream management. The complete system is useful for manufacturing high-quality parts and lightweight closures for obtaining higher yields, reducing scrap waste, and tighter tolerances. Thus, this trend is expected to accelerate the market growth.
Various manufacturers are adopting growth strategies, such as partnerships and agreements, in order to increase the production capacity of caps and closures. This move will propel the U.S. caps and closures market growth. For instance, in April 2020, BERICAP and Thin Film headquarters in San Jose, California entered into a strategic partnership encompassing innovation, integration, and implementation of Thin Film’s NFC-enabled solutions. Through this collaboration, advanced chips were embedded into closures to create dependable and cost-effective solutions for brand protection and authentication purposes.
Competitive Section:
Company Names
- Closure Systems International, Inc.
- Silgan Plastic Closure Solutions
- Bericap GmbH and Co. KG
- Global Closure Systems
- AptarGroup, Inc.
- Berry Plastics Group, Inc.
- Amcor Limited
- Berk Company, LLC
- Blackhawk Molding Co. Inc.
- Tecnocap S.p.A.
