Market Trends of APAC Plastic Caps and Closures Industry
This section covers the major market trends shaping the APAC Plastic Caps & Closures Market according to our research experts:
PET is Expected to Witness Significant Growth
- The industry is heavily dependent on the inputs for manufacturing. PET and PE, which are used as raw materials, have highly fluctuating costs in the market. As the cost of production is dependent on these raw materials, manufacturers are finding it difficult to maintain constant output.
- Recently, the Chinese beverage producer Jin Mai Lang installed two Sidel complete aseptic PET lines, integrating Tetra Pak Processing System technologies and its Aseptic Combi Predis. These lines deliver a production output of 60,000 bottles per hour, making them one of the fastest aseptic PET lines with dry preform decontamination for low acid products, globally.
- These solutions, alongside newly designed PET bottles, aim to assist the Chinese beverage market in increasing the production capacity of its low and high acid products packaged in PET while lowering the total cost of ownership (TCO). Such initiatives by regional players are expected to boost the adoption of plastic caps and closures in the region.
- Additionally, the increasing focus on recyclability and sustainability across the sectors is expected to boost the adoption of recyclable materials for the plastic caps and closures in the region.
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China is Expected to Witness Significant Growth
- The high demand for bottled water and packaged beverages is driving the growth of this market in the beverage industry. The Chinese government announced a plan to build a sports economy worth USD 850 billion by 2025. Hence, sports drinks and energy drinks are expected to witness huge growth over the coming years.
- As the Chinese economy is taking a leap forward, the incomes of Chinese middle-class families are growing. Hence, a considerable segment of the well-educated Chinese population can spend on pharmaceuticals, and they are demanding better government provision.
- Plastic caps and closures are an important aspect of medical devices. A growing pharmaceutical market, despite unfavorable policies, is also driving the demand for plastic caps and closures.
- In May 2020, Dow introduced a newly formulated post-consumer recycled (PCR) plastic resin designed for collation shrink film applications in Asia-Pacific. The new resin is designed with 40% PCR content, which creates a film with performance comparable to those made with virgin resins. The product is made with recycled plastics that are domestically collected within China, and it is manufactured at Dow’s external manufacturing site in Nanjing, China.
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