The market was negatively impacted due to COVID-19 outbreak

New York, June 18, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “United States Plastic Caps and Closures Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https://www.reportlinker.com/p06095508/?utm_source=GNW
Some of the effects of lockdown include lack of availability of raw materials used in the manufacturing process, supply chain disruptions, fluctuating prices, labor shortages that could cause shipping problems, production of the final product to inflate and go beyond budget, etc.

– Plastic caps and closures serve a stretch of industry segments, such as food and beverage, pharmaceuticals, household goods, and cosmetic products, among others. Caps and closures are the final components of packaging and are responsible for maintaining the integrity of the product packing.
– Plastic caps and closures are essential for extending the shelf-life and retaining the taste, flavor, and texture of the packaged product. Besides offering leak-proof and contamination-resistant features, plastic caps and closures play a vital role in driving visual appeal, brand differentiation, and convenience for consumers.
– Therefore, plastic caps and closures are imperative to the packaging industry, which serves as the primary driving force for market growth. The increasing demand for packaged products is anticipated to drive the steady momentum of the market studied. According to Convenience Store News (June 2020), in 2019, the total industry sales of packaged beverages in the United States amounted to USD 30,409 million.
– Technology progressions in plastic packaging have resulted in innovations in product development in the industry. With many companies spending significantly in R&D activities to produce unique and cost-effective products, innovations in the market are increasing. For instance, in October 2020, Reyes Coca-Cola Bottling piloted and commercialized resealable closures, which included 30% recycled content, on 20-oz., half-liter, and 1-liter PET bottles of DASANI throughout California.

Key Market Trends
Beverage Industry is Expected to Witness Significant Growth

– As the volume sales of bottled water increased in recent years, so did the per capita consumption in the United States. Over the last decade, the yearly consumption of bottled water grew by almost 40%, reaching a total of almost 45.3 gallons per person in 2020. In 2020, 15 billion gallons of bottled water were sold in the United States. Bottled water was the most commonly consumed beverage among Americans one year earlier, with carbonated soft drinks ranking a close second, according to the International Bottled Water Association. Due to such demand for packaged drinking water in the region, there is a rising demand for plastic caps and closures.
– PET is a clear, durable, and lightweight plastic, which is widely used for packing beverages, especially convenience-sized soft drinks and juices. Virtually all single-serve and 2-liter bottles of carbonated soft drinks and fruit juices sold in the United States are made from PET. Thus, the rising PET bottle demand is also augmenting the studied market’s growth.
– Various beverages such as dairy, beverages, and energy drinks are also driving the caps and closures market with increasing innovations in glass and HDPE, and PET bottles to ensure aesthetics, long shelf life, and sustainability.
– The packaging of dairy beverages, such as milk, is gaining traction in the United States as the country packs the milk in cartons, PET bottles, and HDPE bottles, increasing the opportunities for plastic caps and closures. For instance, in 2020, Closure System International introduced 38D-KL closures for dairy beverages, such as milk, and are made compatible with HDPE and PET 3 lead finish bottles that serve from single-serve to gallon-sized packages.

Polyethylene Terephthalate (PET) Material is Expected to Hold a Significant Share

– High-density polyethylene (HDPE) and LDPE are thermoplastic polymers produced from the monomer ethylene. When compared to LDPE, HDPE has a higher density and melting point. According to American Chemistry Council and US Census Bureau, Polyethylene production (including HDPE, LDPE, and LLDPE) in the United States is 22,674-kilo metric tons in 2019.
– According to Borealis, the growth in the HDPE caps and closures is mainly due to the replacement of metal caps used on glass bottles (replaced by PET) and a change in the consumption pattern as more refreshments are consumed from small bottles. According to American Chemistry Council, HDPE production in the United States in 2019 was 9,999-kilo metric tons, whereas LDPE production is 3,460 Kilo metric tons. Also, new US PE capacity will come on-stream on schedule despite the weaker global growth environment and despite Chinese trade-war tariffs on US HDPE, LLDPE, and LDPE imports remaining in place.
– Many companies, such as Closure Systems, offer the BorPure HDPE family for caps and closures. In December 2019, Closure Systems International introduced the 38-mm D-KL Linerless HDPE closure, designed for dairy and non-carbonated beverages applications that features improved application performance and drop-down tamper evidence for security and is 100% recyclable.

Competitive Landscape
The United States plastic caps and closures market is highly competitive, owing to the presence of several small and large players in the market, operating in domestic and international markets. The market appears to be moderately concentrated. The players in the market are adopting major strategies, like product innovation, mergers and acquisitions, and strategic partnerships, in order to widen their product portfolio and expand their geographical reach.

– February 2020 – Amcor PLC announced the launch of its first PET container made from 100% post-consumer recycled content (PCR) resin. The company created the new, clear bottle in two sizes, 100 cubic centimeters, and 150 cubic centimeters, for Ritual, a health meets technology company that produces multivitamins.
– Jan 2020 – Silgan and Albea entered a binding offer for Silgan to acquire Albea’s global Dispensing Systems business and its Metal and Brazil clusters. The combination will leverage the expertise of Silgan’s Closure segment, which is focused on food, beverage, home care, and personal care, and Albea’s Dispensing System, which is focused on beauty and skincare, in order to bring about innovative solutions.

Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06095508/?utm_source=GNW

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