Market Trends of Metal Caps and Closures Industry
This section covers the major market trends shaping the Metal Caps & Closures Market according to our research experts:
Pharmaceutical Application Offers Potential Growth
- Metal caps and closures are predominantly used in the pharmaceutical sector as they are sterile and are generally composed of layered material. Metals caps made of steel and aluminum are mostly used in the sector. Besides, aluminum can be highly customizable: natural or colored, plain or embossed. Thus, pharmaceutical packaging can be supplied according to the consumers’ needs.
- The rapidly growing pharmaceutical production and the regulatory changes further favor child-resistant, value-added, and senior-friendly closures, which are anticipated to drive the market in the foreseen period.
- The World Health Organization (WHO) recently estimated that one-third of all medicines sold worldwide are illegitimate. The increasing risks from falsified drugs are creating needs for efficient anti-counterfeiting solutions boosting the adoption of anti-counterfeiting closures.
- The adaptation of aluminum closures in the pharmaceutical industry is on the rise, as its rubber counterparts tend to contaminate the drugs. The contamination is attributable to elastomeric container closure components. Possible contaminants include microorganisms, endotoxins, and chemicals. In 2019, the Food and Drug Administration (FDA) recalled as many as 2,163 drugs, as stated in its report.
- Further, the demand for metal caps and closures may witness a few challenges in the syrup bottle sector owing to the regulations prevailing in their usage. Herbal medicinal products (HMP) have recently gained importance and are extensively used to prevent and treat various ailments.
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Asia- Pacific to Witness the Fastest Growth
- Asia-Pacific is expected to witness the fastest growth because of the presence of two highly populated countries i.e., China and India. In these two countries, the increase in disposable income will act as a supplement for the growth of the metal caps and closures market.
- According to a study performed by Banco do Nordeste, the alcohol consumption in India was 6.23 billion liters in FY 2019. The consumption is expected to reach 6.53 billion liters in FY 2020. Also, according to the CARE Ratings, from INR 1,475,000 million in 2016, the Indian alcohol market is expected to rise to INR 1,754,000 million by 2021, boosting the country’s alcoholic beverage packaging segment. Moreover, a 7.5% growth rate is expected for the beer market for the next five years in India.
- Also, according to the Craft Brewers Association of India, the number of microbreweries in India has galloped from 20 to 120 in the past five years. Such trends are expected to create significant demand for sustainable packaging solutions in the industry.
- Further, many beer producers in the country are witnessing severe monetary losses during the COVID-19 crisis. For instance, Kimaya Himalayan took a hit of around INR 10 million in April 2020. Also, Mumbai-based Drifter Breweries was forced to dump 2,000 liters of beer. Drifter, which sells through its own outlets or through other restaurants and bars, is struggling to sell as eateries are still shut.
- Moreover, with the vast rise in the demand for packaged foods and beverages and the critical role played by caps and closures in keeping packaged consumables fresh for extended periods are likely to boost the market in these regions.
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