Global Beverage Caps & Closures

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This study analyzes the global market for beverage caps and closures. The closures included herein are those used on containers intended for disposal after use. A significant degree of overlap exists among product categories. For purposes of this report, a closure is categorized by the primary function of the closure

Products covered include:

• plastic closures
  • threaded closures, including standard threaded (screw caps), pressurized, and vacuum
  • unthreaded closures (e.g., lids, overcaps, synthetic cork)
  • other closures, such as dispensing closures (e.g., push-pull caps, twist-open closures, spigot closures)
• metal closures
  • screw and lug (vacuum and nonvacuum)
  • crowns
  • roll-on pilfer proof (ROPP)
  • other metal closures, such as aluminum vial seals, caps for composite cans, decorative metal container lids, aluminum seals, and shake and spout dispensers
• rubber
• cork

Excluded from the scope of this study are:

• caps and closures that are an integral part of the container (e.g., metal and composite can tops, peel-up aluminum lids)
• home canning and bottling closures
• glass and paperboard closures
• closures for industrial bulk containers
• flexible closures such as twist ties or foil lidding
• caps and closures used in nonbeverage nonpackaging applications (e.g., liquor decanter closures)

Beverage markets for these products include:

• bottled water (still and sparkling)
• carbonated soft drinks
• beer
• milk (dairy milk)
• wine
• other beverages (such as fruit drinks, ready-to-drink coffee and tea, and sports drinks, liquor and spirits, alternative milk products)

Historical data (2009, 2014, and 2019) and forecasts for 2024 and 2029 are presented for beverage caps and closures demand in units and current US dollars (including inflation) by product and market on a country-by-country and region-by-region basis. The terms “shipments”, “production”, and “output” are used interchangeably in the study, as are the terms “demand”, “sales”, and “market”, which are defined as domestic shipments, plus imports, minus exports.

Demand by Region

Global demand for caps and closures in beverage applications is projected to increase 1.9% annually to 1.6 trillion units in 2024. Growing demand for beverages that are convenient and healthy will support increases globally:

• The Asia/Pacific region will remain the most important regional market for caps and closures in beverage applications, accounting for 34% of global demand in 2024. Demand gains will be driven by China, which will account for nearly half of regional absolute gains.
• The fastest gains will be seen in the Africa/Mideast region, boosted by rising spending on beverages, although it will remain the second smallest regional market, accounting for less than 10% of global demand.
• Demand in Western Europe will stagnate through 2024, although opportunities will exist for bottled water closures and wine.

Demand by Material

Global demand for caps and closures in beverage applications is projected to increase 1.9% annually to 1.6 trillion units in 2024.

Plastic closures will experience gains, reflecting the continued penetration of PET bottles – which mainly utilize plastic closures – in many beverage applications, particularly the sizable bottled water and CSD segments. However, plastic bottles are expected to face competition from aluminum cans, which do not use closures.

Demand for metal caps and closures will be limited by slow growth in beer consumption and the increasing packaging of beer in aluminum cans.

Overall, product manufacturers will continue to seek packaging that adds value to their offerings. As a result, caps and closures in some markets have trended toward the adoption of more expensive, functional closure devices, such as tamper-evident and dispensing types. However, in higher volume beverage applications such as beer and bottled water, simple commodity closures have maintained a dominant market position.

Recycling & Recycled Content

Packaging is responsible for a large amount of plastic waste and is the leading industry for plastic waste generation in the US and the EU. Over 750 billion bottles of water and CSD were sold in 2019, a significant percentage of which were plastic. The majority of these bottles were either burned, disposed of in a landfill, or ended up in the environment. Growing concerns about the impact of plastic on the environment and on human health has spurred many manufacturers to investigate ways to reduce the amount of plastic waste generated by beverage packaging.

In addition to lightweighting and waste reduction initiatives, many manufacturers are looking to increase the amount of recycled content in their plastic packaging. PepsiCo has announced plans to use 25% recycled content in its plastic packaging by 2025, while Coca Cola is aiming for 50% recycled content by 2030. In addition, manufacturers are exploring ways to make plastic packaging more recyclable. In the US, 100% of the bottled water sold is recyclable, including the cap.

Demand by Application

Global demand for caps and closures in the beverage market is projected to increase 1.9% annually to 1.6 trillion units in 2024. Among the most significant factors affecting the beverage industry overall is the shift in consumer preferences toward beverages that are low in sugar and that have additional health benefits, with bottled water the primary beneficiary in volume terms. In addition, premium beverages are seeing outsized gains in developed markets. Growth is expected in:

• the bottled water market, which will register the strongest gains among major beverage types especially in developing areas such as India and Indonesia, but also in the US and other developed markets
• the carbonated soft drink (CSD) market, boosted by growing demand in developing areas, with stronger gains limited by weakness in North America and Western Europe
• sports and energy drinks, ready-to-drink (RTD) coffee and tea, and other niche beverages, which are expected to register fast production gains worldwide and have a greater tendency to use premium or unique packaging as a marketing tool