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Demand for Caps and Closures rises Worldwide

The global caps and closures market made little strides in terms of volume gains amidst the economic slowdown. However, it has grown considerably in the last few years and is anticipated to grow at a rapid pace in the near future.

The global market volume was 1,826 bln in 2012 and is projected to reach 2,312 bln by 2018, growing at a CAGR of 4% from 2013 to 2018, as per BCC Research. The end-use sectors are exhibiting buoyant growth driven by rising population and disposable incomes. The caps & closures market was dominated by the beverage segment both in value and volume terms. Plastics (polyethylene and polypropylene) were the most dominant raw materials used for caps and closures. The global caps & closures market is largely driven by the volume growth in its end-use industries. The penchant for consumption of packaged products such as food & beverage, personal care is resulting in the growth of this industry. Consumers' push for convenient packaging would result in the growth of pouches, sachets, bags, and other types of flexible packaging. These novel pack types with varying sizes and innovative closures are expected to gain momentum in the near future.
The primary factor driving the growth of caps & closures market is their direct relation growing to the downstream industries such as food & beverage, personal & home care, pharmaceutical, and industrial chemicals. Caps & closures is an imperative segment of the packaging industry as it aids in protecting and extending the shelf-life of end-products. In terms of end-use, beverages remain the leading market for caps & closures. The market is set to exhibit the strongest unit volume increases, followed by personal & household care products. Polypropylene and polyethylene are the important plastic resins used for making wide variety of caps. Metal caps & closures are projected to grow at slower pace through 2018. Penetration of metal caps is still high in the developing countries and these are expected to witness sluggish growth in the years ahead due to the adoption of plastic closures. Other materials used for caps & closures are glass, elastomers, rubber, cork, paperboard, etc. which together account for a very low share and are expected to grow at a meager pace in the future. The Asia-Pacific region accounts for the biggest share both in terms of value as well as volume and continues to hold that position due to its thriving end-user industries and move towards smaller pack sizes, etc. will boost the demand for caps & closures. Asia-Pacific led the global market followed in terms of revenue in the year 2012. Caps & closures is a dynamic sector in the packaging industry with various stake holders such as raw material suppliers, processors, packaging manufacturers, and end-user industries such as manufacturers of food, beverage, personal care products. As opportunities to grow in these end-use markets are immense, players are competing to launch innovative products and diversifying their product portfolio. Packaging is essential to preserve the quality of the product and it also prevents it from chemical reactions endangering the consumer's health. The important materials used in Caps & Closures Market are plastics (polyethylene, polypropylene), metal (aluminum, tin), paper, rubber, and cork. These raw materials are converted using various molds to manufacture different types of closures to be used in end-use applications. Consumer preferences, product characteristics, and material compatibility are essential in determining the type of material to be used. Plastic is the dominant raw material used due to its characteristics and various cost benefits offered. The adoption of plastic closures has been high and is highly penetrated in the important end-use applications.