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Child-resistant and tamper-evident packaging are gaining grounds in the caps and closures market in North America. As per the US government laws, it is mandatory to use child-resistant caps and closures for hazardous products such as household chemicals, pesticides, and cosmetics. These laws are mainly directed toward children below five years. Several companies are manufacturing tamper-evident closures to prevent unauthorized access to products. These closures have more than one entry barriers, which once broken make tampering apparent to the observer. Tamper-evident packages also have distinctive seals and are made up of materials that are not easily available in the market to prevent counterfeiting. Moreover, people consider these features before buying because of safety and convenience. Market research analysts at Technavio have predicted that the caps and closure market in North America will grow at a CAGR of more than 4% by 2020.
Caps and closures manufacturers are focusing on functional drinks as they are growing at a much faster rate than traditional drinks such as CSDs. Functional drinks include energy drinks, RTD tea and coffee, sports drinks, and enhanced fruit and water drinks. The share of these drinks is witnessing the highest growth rate in the beverages industry because of increased health consciousness among consumers. Several companies that produce packaged food products and beverages are looking for such caps and closures that have unique designs to meet their high demand and create product differentiation. These companies prefer closure-intensive packaging to containers without closures, such as metal cans.
This market is highly fragmented because of the presence of a large number of vendors, including international and regional players. The established vendors dominate the market in terms of quality, features, and range of offerings. However, the local vendors are posing a serious threat to the global players by offering innovative solutions at prices lower than those offered by the latter. Rapid growth of the consumer and retail industry and the popularity of the e-commerce industry has provided huge growth potential for the market vendors. International players are expected to grow inorganically during the forecast period by acquiring regional or local players.
Leading vendors in the market are -
Other prominent vendors in the caps and closure market in North America include Albéa, Alpla Werke, Aptar Group, Borealis, Global Closure Systems, Guala Closures, Meadwestvaco, Pelliconi, Rexam, Reynolds, Rieke Packaging Systems, RPC Group, and Silgan Holdings.
As per this market study, the beverages industry was the largest end-user segment in the caps and closure market in North America and contributed around 64% of the total revenue in 2015. In the beverages industry, caps and closures are mostly used for CSDs, lemonades, water, juices, and alcoholic beverages. Packaging design and aesthetic appeal are the major factors that affect the demand of caps and closures. This segment is also the fastest-growing segment, anticipated to register a CAGR of 4.59% due to the increasing popularity of energy drinks and RTD beverages.
This market analysis estimates that plastic is the most preferred raw material in the manufacture of caps and closures in North America, and accounted for more than 71% of the total market share in 2015. Much of this segment’s high growth is because most manufacturing companies opt for plastic packaging over metal and glass owing to its light weight and durability. The increasing consumption of plastic bottles especially polyethylene terephthalate (PET) bottles in different industries is likely to drive the demand for plastic caps and closures. In addition, the demand for continuous thread plastic caps and closures, which are made of smooth or matte tops and ribbed or smooth skirts, is expected to be higher than the overall demand for plastic caps and closures.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by end-users
PART 07: Market segmentation by raw material
PART 08: Key leading countries
PART 09: Market drivers
PART 10: Impact of drivers
PART 11: Market challenges
PART 12: Impact of drivers and challenges
PART 13: Market trends
PART 14: Vendor landscape
PART 15: Appendix
PART 16: Explore Technavio
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