|Status : Published||Published On : Apr, 2023||Report Code : VRCH2027||Industry : Chemicals & Materials||Available Format :||Page : 150|
The aluminium caps and closure market was valued at USD 5.8 billion in 2022 and is expected to reach USD 7.8 billion by 2030, registering a CAGR of 5.1% during the period of 2023-2030. The power of aluminium to shape any shape and its protective properties have made it one of the world's most flexible packaging materials. To prolong the shelf-life and maintain the taste, flavour, and texture of the packaged goods, aluminium caps & closures are important. Aluminium caps and seals play a crucial role in driving visual appeal, brand differentiation, and customer usability, in addition to providing leak-proof and contamination-resistant functionality.
For the packaging sector, aluminium caps & closures are crucial and this acts as the main driving force for the development of the sector. In addition, the rising demand for branded goods is anticipated to raise the global market's steady momentum.
The materials which are used to cover or seal a single item are aluminium caps and seals. Protecting the substance from undesired germs, oxygen and pilferage is the key objective behind this stuff. It also helps to ease the transport of different objects. Owing to the nature of corrosion resistance, aluminium caps and seals are gaining further popularity. It is used in various fields, such as food and drink, home and personal care, and pharmaceuticals. The industry uses it to make its packaging more compact and user-friendly.
Insight by Product Type:
• Easy open ends
• Non-refillable closures
The Roll-on pilfer-proof caps and closures segment dominated the Aluminium cap and closure market and held the largest market share of 23.94% in the year 2019.
Closure strips, spout closures, peel-off foils, non-refillable, easy-open can end and roll-on pilfer-proof caps are included in the product segment. The largest market share of the Roll-on pilfer-proof caps segment was 23.94 per cent in 2019 and is projected to demonstrate the fastest growth over the forecast period. Because of its tamper-evident property, it makes for a wide variety of applications in the pharmaceutical and food & beverage fields. In the packaging of sparkling drinks, wine, and spirits, roll-on pilfer-proof caps and seals are heavily used.
Insight by end-use sector:
• Home & personal care
• Others (automotive and chemical)
The beverage segment dominated the market and was valued at USD 1.53 billion in the year 2019
The automobile, chemical, home & personal care, pharmacy, food and beverage sectors of the end-use market. The industry dominated the beverage group, which in 2019 was estimated at USD 1.53 billion and is expected to see the fastest growth over the projected period. This is due to its features, such as cost-effectiveness and lightweight. In a wide variety of packaging for alcoholic drinks, such as spirit bottles, vodka, and champagne, aluminium caps and seals are commonly used.
Pharmaceutical Sector is Expected to Witness the Highest Growth Rate in Aluminium Caps and Closure Market:
• A persistently vigorous growth rate is expected for the pharmaceutical and healthcare industries, with growing demand in many regions, such as North America and Europe, owing to the tight regulatory climate in these regions. It is expected that anti-counterfeit and tamper-proof packaging technologies will boost the consumer demand for aluminium caps and closures.
• In the pharmaceutical industry, the use of aluminium closures is on the rise because their rubber counterparts appear to contaminate the products. Aluminium seals, in addition, create a highly efficient shield without compromising the taste and scent of the substance.
• North America
• Middle East & Africa
• South America
North America is Expected to Hold a Major Share in the Aluminium Caps and Closure Market:
• A substantial market share is anticipated in the North American area, which is home to several firms, including Reynold Group Holding Limited, Silgan Holding, Cary Company, O.Berk Company, and Crown Holding, among others.
• In addition, the food and beverage industry is one of the region's largest users in the demand for aluminium caps and closures. For the preservation of food items, such as seeds, usually contained in glass containers, aluminium caps or seals are often used.
• The intake of alcoholic drinks in the United States in 2019 was 30,53 billion litres, according to Banco do Nordeste. In 2018, the selling of spirits in Canada was CND 5.49 billion, according to StatsCan. Many alcoholic drinks use aluminium packaging enclosures, which are expected to fuel the region's market for aluminium caps and closures.
• More food and beverages are needed to increase population growth and per capita income growth in developed countries. In each end-use vertical, the pace of output for a single commodity and product line-up rose successively in those countries last year. In the coming years, this reality has tremendous potential to push the market.
• New brands are joining all the end-use verticals that demand more caps & closures of aluminium for each single packaged unit they make. This, in particular, is driving growth in this market. The quantity of the final packed unit is also reduced in order to maximise the number of goods sold and eventually lead to the growth of the aluminium caps & closures market, retaining price vs. product offering rivalry among brands.
• A restraining factor for this market has been plastic substitutes. As the price is smaller, plastic is used for the purpose of cost-cutting. The technical breakthrough in plastics and polymers today makes them environmentally sustainable and health-friendly. For this cause, producers are already favourable to plastics over aluminium and plastic closures have already begun to be introduced.
• Syrups or powdered drug bottles and injection liquids are the most widely used end-use products in the pharmacy industry. In terms of market share in 2018, the pharmaceuticals sector is second, which is about 20.7 per cent. Across the projected period, the CAGR is expected to be 5.1 per cent.
As major drivers for aluminium caps and closures, growing demand for convenient food and increased operability serve as essential drivers. To keep the substance new and healthy from dust and other bacteria, a cap plays an imperative role. Consumers are on the lookout for user-friendly, easy-to-open, and simple-to-use closures. In different product categories, such as body care, skincare, drinks, and liquid food products, the growing popularity of dispensing closures and pump closures is set to accelerate the growth of the global aluminium caps and closure market.
The movement towards health and fitness is now moving towards preventive healthcare, which increases the market for FMCG goods targeting enhanced lifestyles. Illegal refilling of syrups and soft drinks and their counterfeiting pose a growing challenge and a significant risk to human health, customer trust and welfare in a highly competitive market. In order to educate customers about the quality and authenticity of the goods they are purchasing, caps that avoid leakage, tampering, and counterfeiting are becoming increasingly necessary.
In the next few years, developing countries such as China, India, and Brazil will face strong demand for aluminium caps & closures. Development is largely driven by favourable demographics and an increase in household incomes. When processed food goods eat up a rising share of the consumer's purchases due to changing habits, comfort and hygiene are becoming highly prized attributes. Due to the increasing FMCG industry, other developing economies, such as Mexico, Turkey, South Africa, and Indonesia, are attractive markets for aluminium caps & closures. Through diversifying their product portfolios and expanding their distribution base, cap makers are pursuing ambitious growth strategies in these nations.
The per capita intake of aluminium caps & closures is high in developing economies such as the US and Western Europe, leaving further development to be reduced. The increasing trend of healthier beverage consumption by health-conscious customers, including juices and nutritional beverages, has also contributed to a decrease in sales of carbonated soft drinks (CSDs) in a few mature markets. Demand for aluminium caps & closures is related to sales of packaged goods on the retail front. In the last five years, the falling sales of soft beverages have hindered the growth of the soda packaging market, which is the main end consumer. The penetration of packaged product sales in other sectors, such as food and personal care, is high. Due to the interdependence of the growth of the end-use industries, notably in the beverage industry, demand for aluminium caps & closures is relatively lower in developing markets. Although this demand could be powered by improved consumption in the next five years, this presents a problem as the increase in consumption levels is projected to remain modest.
• Leading players in the aluminium caps & closures market:-
• Crown Holding (US)
• Silgan Holdings (US)
• Amcor (Australia)
• Guala Closure (Luxembourg)
• Alcopack (Germany)
• Herti JSC (Bulgaria)
• Torrent Closures (Spain)
• Cap & Seal Pvt Ltd (India)
• Federfin Tech S.R.L (Italy)
• Osias Berk (US)
• ITC Packaging (US)
• DYZDN Metal Packaging (China)
• Shangyu Sanyou Electro-Chemical Aluminium Products (China)
• Alameda Packaging (US)
• EMA Pharmaceuticals (France)
• Helicap Closures (China)
• Crown Food Europe, a division of Crown Holdings, launched a new package of capping strategies in February 2018 to help food producers reduce the overall cost of ownership. The kit included the sale of its capping technology, ancillary parts, and technical specialist assistance for the service life of the unit. As part of this kit, three of Crown's capping technologies were made available for sale—Smart Capper, Euro Capper, and Global Capper.
• Amcor purchased Bemis Business Inc. in June 2019. The merged firm will now be operating as Amcor Plc (Amcor). The acquisition of Bemis has created increased size, expertise, and presence that has validated the market-leading value proposition of Amcor and produced substantial shareholder value.
Source: VynZ Research
Source: VynZ Research