Growing Demand for Convenience Food Packaging Has Opened New Opportunities for the Caps and Closures Industry
Millennials across the world are now getting more & more inclined toward convenient packaging since it is not only easier to carry, but it also offers a lot of advantages over conventional packaging solutions, mostly among the Gen Z. Usage of smaller bottles has now become a new fad as they serve as the perfect on-the-go breakfast bottles. Among a plethora of other industries, the F & B sector has been acknowledged as the prime end user of the plastics as well as metal caps & closures, as this sector creates a persistent demand for caps to cram up a huge assortment of non-carbonated and carbonated drinks.
Apart from the soaring demand for packaged food, there’s also been a greater need for effective pharmaceutical remedies, which has eventually bolstered the much lucrative sealing solution, i.e. caps and closures. Nonetheless, this industry is largely reliant on the suppliers of raw materials for fabricating PE and PP, and this is why caps & closures tend to showcase fluctuating costs across different countries. Since the cost of production is hooked on the raw materials, manufacturers actually find it tough to keep up a persistent output.
Over the last decade, the food and drink exports across the European Union have doubled up, holding out more than EUR ninety billion and accounting for a worthwhile balance of almost EUR thirty billion and that’s how the demand for PP is experiencing a whopping growth. Germany, for example, has the largest beverage sector in Europe, which embodies the fourth largest industry in Germany and owing to the great spike in demand for different beverages products such as health drinks, energy drinks, and even mocktails, the demand for caps & closures is also increasing at a rapid pace.
According to Allied Market Research, the global caps and closures market is estimated to project a considerable CAGR from 2022 to 2031. In the last few years, consumers have turned out to be overtly conscious toward health, and consequently, the demand for healthy beverages has also experienced a steep incline. Bottled healthy beverages are today’s on-the-go version of convenience, which in turn has boosted the caps and closures market growth in more than one way.
The fact that food products stowed in bottles are kept secure through different types of airtight plastic closures has made them a highly preferred choice in the F&B industry. Metal caps and closures are now excessively being used even for the storage of various grains. The second widest food market through the entire world, the USA contributes to a significantly high share of the caps & closures market. Across Canada and the United States, retail shelf packaging is becoming highly popular, mainly due to the changing lifestyles of individuals. And, this trend is more fueled by the mounting millennial populace in the workforce. People nowadays are found to work through malleable work hours, which further strengthens the demand for convenience foods, which has supplemented the market growth even more.
A renowned name in the plastics packaging industry Manjushree Technopack Ltd. (MTL), sponsored by Advent International, a private equity firm in the United States, has accorded to obtain hundred percent of the manufacturing facilities and business operations of Hitesh Plastics, a Bengaluru-based manufacturer of plastic closures. The procurement will allow the company to pass in the highly specified market section and will reinforce its position as a top-notch cohesive rigid plastic packaging player. It would also incorporate two new units to the existing twenty-one units of MTL across India.
Top organizations such as Ball Corporation and Amcor are emphasizing on new ways of heightening their presence in the market through tactical collaborations including mergers & acquisitions so as to magnify their product portfolios and geographical presence, thus catering to a wider consumer base. For example, Aptar brought forth a conferring closure made of post-consumer reprocessed resin back in 2019. In Europe, the organization is taking recourse to fifty of recycled PC in the built-up of dispensing closure, guaranteeing the global conversion to a circular economy and an ecological future.
High-end advancements in technology, especially in plastic packaging have given way to exclusive innovations in product expansion in the F&B sector. With more & more companies capitalizing significantly in the research & development activities to crop up economical products, innovations have taken up a new height. In the first quarter of 2018, for example, FIJI Water, one of the renowned bottled water brands in the United States, brought about its new FIJI Water Sports Cap bottle highlighting a slender and svelte design, particularly aiming the sports fanatics.
Furthermore, Dow industries brought together an innovative range of PET resins collection for a better built-up of closures and caps. Imola, a prominent Italian name, also came up with a new-fangled HD printing appliance to create top-quality images on caps. A lot of other companies are also trailing through similar footstep and are providing new and advanced products altogether.
Covid-19 scenario-
Here, it’s worth stating that the outbreak of the Covid-19 pandemic gave way to disrupted supply chain across the world, which had a sheer negative impact on the global caps and closures market, especially throughout the initial period. The majority of manufacturing units were temporarily closed which aggravated the market condition even more. However, with the mass inoculation drive on board, the global situation is getting back on track, and the caps & closures industry has also started recovering at a fast pace.
Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing on miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest for creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last four years.
koyel.ghosh@alliedmarketresearch.net
https://www.linkedin.com/in/koyel-ghosh/
No Comment