Market Trends of North America Plastic Caps And Closures Industry
Beverages to be the Largest End-user Industry
- Bottled water is one of the most consumed beverages due to its convenience. The packaging of bottled water makes it also suitable for long-distance transportation, and the packaging of bottled water is widespread.
- According to the International Bottled Water Association (IBWA) and the Beverage Marketing Corporation (BMC), Americans drink bottled water more than any other beverage. Health awareness, a higher standard of living, and rising demand and consumption of bottled water are major factors pushing the demand for bottled water in North America, consequently driving the demand for bottled water packaging across the region. This is expected to drive the demand for plastic caps and closures for bottled water.
- The major factor driving the demand for bottles and containers for water is consumers’ interest in healthy and natural products. Plastic is a widely used packaging material for water, which further leverages the caps and closures market in the region.
- According to a study by Danamark, on average, a typical person in Canada consumes 335 liters of water daily, which is the equivalent of 670 standard water bottles (500 ml size).
- Manufacturers operating in the industry are focused on launching new products as part of their business expansion. For instance, in May 2024, AlpekPolyester USA LLC introduced a new PET resin for bottle caps at NPE2024. This material is marketed under the brand CAPETall, and it meets all the production needs of bottle caps. The material is expected to be available in 2025. The company also stated that CaPETall is a 100% PET product that improves post-consumer PET bottle recycling and the PET circular economy.
- In March 2024, Beyond Plastic introduced one of the first biodegradable plastic bottle caps to enter the market. The closure is made from polyhydroxyalkanoate (PHA), a biopolymer created using bacteria fermentation. The new, eco-friendly cap looks just like traditional petroleum-based plastic caps but brings transformative advantages such as being recyclable, compostable, and biodegradable, even in sensitive conditions. Such caps launched in the country can be used for bottled water and in other industries.
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The United States is Expected to Witness Significant Growth
- Closures for cosmetics are also gaining traction in the United States due to their hygienic qualities, ease of use, dispensing characteristics, and ability to provide a cohesive look to products such as fragrances and face creams. Various packaging companies also emphasize manufacturing caps and closures that meet sustainable packaging criteria, including new materials and lightweight nature.
- According to the US Census Bureau, the annual sales of US retail food and beverage stores reached approximately USD 985.3 billion in 2023, compared to USD 728.8 billion in 2017. As beverage consumption increases, particularly bottled water, soft drinks, juices, and alcoholic beverages, the demand for beverage packaging solutions in the country rises correspondingly.
- The rising focus of consumers on enhancing physical appearance and maintaining personal hygiene, along with the rise of companies offering more affordable versions of high-end cosmetic products, has increased consumer spending on cosmetics and personal care products.
- According to Common Thread Co., an e-commerce growth agency, the US cosmetics and personal care industry reached USD 90 billion in 2023.
- In response to the expansion of the cosmetics and personal care industry in the United States, the demand for primary packaging, including caps and closures, is growing in the country, thus contributing to the overall growth of the market studied in terms of volume and value.
- Due to the growing demand for bottled water as a better-for-you product and for on-the-go hydration, the bottled water market in the United States has reached new heights in recent years, and it is expected to witness growth in the upcoming years.
- In response, production is expected to boom in the country in the upcoming years, which, in turn, is expected to bolster the demand for bottle caps in terms of value.
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