Market Trends of Europe Metal Caps And Closures Industry
The Beverage Industry is Expected to Adopt Metal Closures Significantly
- The beverage industry significantly drives the metal closures market. Metal closures, including crown caps, aluminum screw caps, and twist/lug closures, are pivotal in beverage packaging. These closures find applications in a range of beverages, from carbonated soft drinks and energy drinks to alcoholic beverages.
- In Europe, the demand for beverage caps and closures is on the rise, propelled by the continent's extensive consumption of both alcoholic and non-alcoholic beverages. According to the Brewers of Europe 2023 report, in 2022, Europe produced a staggering 401,945 thousand hectoliters of beer, underscoring the region's robust beverage industry. This surge in beverage production is directly fueling the need for metal closures in the European market.
- Metal caps and closures are gaining traction in wine bottle packaging, lauded for their prowess in maintaining wine quality and freshness. Aluminum screw closures, a contemporary choice, excel in safeguarding the distinct taste and aroma of wines. By staving off oxidation, these closures create an ideal environment for wine maturation, guaranteeing its enduring quality.
- European expansion is a key strategy for global packaging manufacturers, who are increasingly turning to mergers and acquisitions to tap into the region's burgeoning market. For instance, Panvetri, a family-owned business that offers glass and metal packaging for the wine and olive oil industries, was acquired by Berlin Packaging, a leading hybrid packaging supplier. Panvetri also provides beer, spirits, and sparkling wine bottles, olive oil cans, food jars, and closures. Berlin Packaging's extensive local presence and experienced sales team can support Panvetri in broadening its range of products.
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The United Kingdom is Expected to Hold a Significant Share in the Market
- The United Kingdom is poised to claim a substantial share in the metal caps and closures market, driven by key players like Guala Closures SpA, Pelliconi & Co. SpA, and Silgan Closures. Metal closures are predominantly favored in the beverage sector, prized for their recyclability, durability, and adeptness at providing leak-proof and contamination-resistant seals. Notably, beer emerges as the frontrunner for embracing metal closures in the beverage industry.
- Furthermore, the rising consumption of both alcoholic and non-alcoholic beverages in the United Kingdom has notably surged, directly bolstering the market for metal caps and closures. Data from the Office for National Statistics in the United Kingdom highlights a substantial uptick in consumer spending on food and non-alcoholic beverages in recent years.
- Recycling and sustainability concerns are also driving the growth of the UK metal caps and closures market. Metal sustainability is primarily driven by recycling, saving up to 95% of the raw material and energy needed to make raw materials.
- In 2023, the United Kingdom achieved a notable milestone, with its aluminum packaging recycling rate hitting 68%, as reported by the Environment Agency through the National Packaging Waste Database. Throughout the year, the nation recycled 162,357 tonnes of aluminum packaging, notably led by beverage cans, with an impressive 81% recycling rate. Furthermore, the annual data highlights a significant uptick in the UK's domestic demand for aluminum packaging.
- Furthermore, many companies in the alcohol sector are introducing drinks and seizing the growing market. For instance, Lockdown Liquor & Co. introduced its premium canned cocktails with a new range called Easy Liquor. The line-up includes a Margarita, a Rum Punch, a Ginger Cosmo, and an Espresso Martini. The growing introduction of new canned beverages creates demand for metal caps and closures.
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