Caps and closures in North America: Key market research findings
- The US dominates the market geographically
- Beverages industry accounts for a majority of the market’s revenue
- Key vendors – Amcor, Bericap, Berry Plastics, and Crown Holdings
Technavio’s market research analysts predict the caps and closures market in North America to grow at a CAGR of over 4% between 2016 and 2020. The demand for caps and closures in this region is spurred primarily by the demand for child-resistant and tamper-evident closures. In the US, the Consumer Product Safety Commission has enacted rules that mandate the use of child-resistant caps and closures for hazardous products such as household chemicals, pesticides, and cosmetics. Furthermore, companies in North America are shifting towards tamper-evident closures to prevent unauthorized access to their products. In 2015, the US led the caps and closures market in North America by accounting for more than 80% of the overall market revenue. The rising demand for value-added closures in the country will fuel further growth in the caps and closures market in the US during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the caps and closure segments based on the end-user.
“Manufacturers in the market are currently focusing on reducing the weight of packaging products without compromising on their in-seal and barrier qualities and performance properties. R&D teams of companies are incorporating different methodologies to identify and monitor changes in the average weight of packaging products and its implications on factors such as raw material consumption and transportation. Reducing the weight of materials and modifying formats to lighter configurations also brings about cots-efficiency and ease of transportaion,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
During 2015, the beverages industry accounted for more than 64% of the overall market revenue to become the largest end-user segment of the caps and closures market in North America. In the beverages industry, caps and closures are mostly used for CSDs, lemonades, water, juices, and alcoholic beverages. The projected shift in consumer preference from CSDs to water bottles, energy drinks, and RTD beverages, brought about by increased awareness about leading a healthy lifestyle, will fuel the demand for caps and closures in the beverages industry over the next four years.
The key vendors in the caps and closures market in North America include Amcor, Bericap, Berry Plastics, and Crown Holdings. There is huge scope for innovation for vendors in the market owing to the growth of the consumer and retail industry, the rising popularity of the e-commerce industry, and the resultant need for efficient transportation. International players are expected to grow inorganically during the forecast period through the acquisition of regional or local players. Competition in this market is intense with vendors competing on the basis of product differentiation, portfolios, and pricing.
A more detailed analysis is available in the Technavio report, Caps and Closures Market in North America 2016-2020.
We can customize reports by other regions and specific segments upon request.
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