Aluminium caps & closures market worth USD 7.6 billion by 2025
According to a new market research report the “Aluminum Caps & Closures Market by Product Type (Roll-on pilfer-proof caps, Easy open end lids, Non-refillable closures), End-Use Sector (Beverage, Pharmaceutical, Food, Home & personal care), and Region – Global Forecast to 2025″, the global aluminium caps & closures market size is projected to grow from USD 6.2 billion in 2020 to USD 7.6 billion by 2025, at a CAGR of 3.9% between 2020 and 2025.
Aluminium caps & closures are used to seal contents within containers, safeguard the packaged product, and to extend the shelf life of the product. The aluminium caps & closures industry is witnessing high growth because of the increasing demand for convenience food by consumers and concerns about food product safety. Product differentiation and branding are also possible using aluminium caps & closures.
According to the report, Crown Holdings held the leading position in the global aluminium caps & closures market. The company has maintained its leadership position through its strong distribution network across Western Europe, the US, and other developing countries. The company has an extensive global reach, strong market position, and stable revenue generation. It aims to consolidate its position in the global aluminium caps & closures market through several strategic acquisitions and investments.
Amcor is the second-largest player in the aluminium caps & closures market. The company has its presence in North America, Europe, Asia Pacific, and in emerging markets. It is one of the leading companies engaged in the manufacturing and distribution of both plastic and aluminium caps & closures. The company focuses on increasing its profitability by strengthening customer relations and expanding its presence by adopting both inorganic and organic strategies, such as agreements and contracts in emerging markets while optimizing operational performance.
In terms of value, the roll-on pilfer-proof segment is projected to account for the largest share of the aluminium caps & closures market, by product type, during the forecast period.
Roll-on pilfer-proof (ROPP) caps are among the most widely used seals for various jars, tubes, and bottles. It is a cap with a thread on its internal surface that engages with the corresponding thread on the outside of the glass, plastic, or metal container. It provides an effective seal, which can be easily opened and is re-closable.
The pharmaceutical industry is projected to register the highest CAGR during the forecast period.
It is very important to maintain the quality of pharmaceutical products during the manufacturing process. Pharmaceutical products can be contaminated through air particles, dust, and microorganisms. To avoid contamination, aluminium caps & closures are used to seal the medicines in the pharmaceutical industry. The packaging of healthcare products is of utmost importance to protect the contents from air, dust, and moisture. An increase in chronic ailments, an increase in the aging population, and a rise in disposable income in developing nations drive the demand for healthcare products, thereby driving the demand for aluminium caps & closures.
The APAC region leads the aluminium caps & closures market in terms of volume.
APAC is projected to be the fastest-growing market for aluminium caps & closures during the forecast period. Convenience food demanded by consumers, concerns about product safety & security, demand for smaller pack sizes, and the need to avoid the contamination of the packaged food are some of the major reasons that could drive the aluminium caps & closures market in the region. However, innovation in the industry, substitute products, and stringent environmental regulations are some of the major restraining and challenging factors in this market.