The global Aluminum Caps & Closures Market size is projected to grow from USD 6.2 billion in 2020 to USD 7.6 billion by 2025, at a CAGR of 3.9% between 2020 and 2025. Aluminum caps & closures are used for enhancing the shelf-life of the product as they help avoid contamination of the packaged product. These caps & closures provide excellent printability, as they play a crucial role in the marketing and promotion of the product. Additionally, aluminum is 100% recyclable and leaves a less adverse impact on the environment, which is a major factor in choosing it over other materials.
The aluminum caps & closures industry is witnessing high growth owing to the increase in demand for convenience by consumers and concerns about food product safety. Packaging requires more than shelf appeal, convenience, and brand diversification. Factors such an increase in demand for easy to open and sustainable packs, demographic trends, and rapid urbanization contribute to the demand and adoption rate of aluminum caps & closures. These are widely used in the pharmaceutical, beverage, food, cosmetics & toiletries, liquid fertilizers, and oil industries. Caps & closures help extend the shelf life of products, provide a barrier to dirt and moisture, and balance the oxygen content of the packed product.
Based on the product type, the roll-on pilfer-proof segment is projected to grow at the highest CAGR during the forecast period. A major factor in this expansion is supported by the fact that roll-on pilfer-proof caps combine the traditional decorating role of tamper-proof sealing and help retain the properties of packaged products.
Based on the end-use industry, the pharmaceutical segment is projected to dominate the aluminum caps & closures market through 2025. The growth is due to the increase in demand for sanitizers and homecare hygiene products during the COVID-19 pandemic.
APAC is the fastest-growing market for aluminum caps & closures. The growth of the aluminum caps & closures market in the region is mainly attributed to China, India, and Southeast Asian countries. These bustling economies have a lot of potential customers. The market is driven by various factors such as increased consumption of processed foods & beverages, innovation in aluminum packaging, and the reusability of aluminum. The higher disposable income in these developing countries has increased their purchasing power. As a result, the market has been positively impacted. However, the aluminum caps & closures market faces restraints such as fluctuating raw material prices and stringent regulations on packaging material waste and recycling, which hinder the growth of the market.
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