The crown caps market is expected to register a CAGR of 3.1% over the forecast period (2020-2025). The smaller sized beverage bottles are expected to witness growth in preference as more consumers look to reduce their carbonated soft drink and alcohol intake, especially beer. This is supposed to impact the increase in demand for crown caps. The effect is expected to be more prominent in the Asia-Pacific region. Overall, the global crown caps market is likely to pass through a turbulent phase during the forecast period.
- The market is witnessing a trend of attractive colors and printing. As the color, shape, feel, graphics and printing of the product communicate the brand’s identity and provide differentiation from competitive products on the store shelf, the companies in the market are increasingly focusing on producing attractive packages.
- As market innovation continues, crown caps are estimated to witness an increase in demand in the alcoholic beverages market.
- Despite the positive outlook, the global crown caps market is facing a few challenges. For instance, the growing popularity of flexible and closure less packaging is expected to hinder the global crown caps market in the upcoming years. Moreover, a shift of consumers towards the plastic bottles from glass bottles is anticipated to further hurdle the growth of global crown caps market. Furthermore, consumers are demanding for easy and convenient packaging which provides ease in consuming the product along with preventing content spillage.
Key Market Trends
Alcoholic Beverages to hold Highest Share
- Beverage crown caps are expected to have the highest market share owing to the widespread consumption of alcoholic and non-alcoholic drinks across the globe. Increasing gatherings and festivals, such as Oktoberfest, which is held annually in Munich, is estimated to boost the market. It is estimated that more than five million people attend the festival every year, further driving the demand for beverages which is reflecting the growth of crown caps.
- The growing market for alcoholic drinks is propelling the market studied. During the past decade, due to the changing lifestyle trends and increasing affordability of beer across the globe, alcoholic beverage packaging has gained significant traction.
- The demand for various sizes of alcohol, and benefits, like one-time consumption, have made alcoholic beverages a preferred option for a wide range of consumers, thereby driving the growth of the alcohol industry which drives the crown caps market as well.
- The increasing consumption of beverages developed and emerging countries such as United States, India, China are expected to propel the growth of the market. Of all the beverages consumed, about 44.7 gallons of soft drinks are consumed on an average by an American, annually, followed by 28.3 gallons of bottled water and 20.8 gallons of beer. Owing to such high consumption of beverages, the demand for crown caps is expected to increase.
- However, due to the global coronavirus outbreak, the sale of alcoolic beverages has seen a significant downturn amid the global lockdown in various countries. Hence, this is expected to hinder the market growth for a particular period.
Asia-Pacific to Witness 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 crown caps market. Moreover, according to the World Health Organization, the total pure alcohol consumption per capita in China amounted to 7.6 liters.
- A considerable increase in the consumption of beer has been observed in India due to its growing youth population with a preference for beer. Changing lifestyles and consumer preferences have considerably boosted the adoption of beer in the Asia-Pacific region. Owing to the increasing demand in the region, companies operating in the region have grown to cater to the demand of other countries as well.
- Notably, China recorded the highest beer export across the Asia-Pacific region followed by Thailand and Singapore.
- Further, there has been a consistent growth in preference for beverages with low levels of alcohol and the sales of no-alcohol and low-alcohol beers have been rising with the growing interest from health-conscious consumers and a wider choice of new ranges with improved taste. Another driving factor is that the beers with low levels of alcohol are now cheaper than their high-alcohol equivalents, for those of 2.8% ABV and less. These factors are anticipated to increase the demand for crown caps in the region.
The crown caps market is moderately fragmented and competitive due to the presence of international vendors. Some of the key players of this market are PELLICONI & C. SPA, Astir Vitogiannis Bros SA, and AMD Industries Inc. amongst others. These players along with others are focusing on expanding their business strategies to gain a competitive edge over the market.
- November 2019 - Guala Closures East Africa (GCEA), a wholly owned subsidiary of an Italian company has set up a plant in Kenya targeting to produce bottle caps for alcohol and beverage manufacturers across East Africa.
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