Crown closures sector primed for growth

Crown closures are due to see a boost in popularity over the next few years as more drinks companies begin to rethink their packaging.

The data, which was part of a report created by business intelligence company DBMR Nucleus, illustrated how the global crown closures sector was valued at US$1.10 billion in 2021 and has now been forecast to reach USD$1.34 billion by 2029.

The global business, which according to the projections, is due to register a compound annual growth rate (CAGR) of 2.45% during the forecast period of 2022-2029, is based on the market drivers and market restraints for industry derived from SWOT analysis on the sector as well as recent developments, product launches, joint ventures, mergers and acquisitions by the several key players and brands.

The analysis noted how the crown closures marketplace can be segmented based on the material type into metal, plastic, and others and that, while metal crown closures are “traditional and widely used due to their durability and premium look”, plastic crown closures have “gained popularity in recent years due to their lightweight nature and cost-effectiveness”.

The data also highlighted how the sector can also be split by product type into twist-off closures, standard closures, and others. The findings pointed out that “twist-off closures are convenient for resealing, while standard closures are more common in the beverage industry”.

Additionally, the industry can be segmented into alcoholic beverages, non-alcoholic beverages, and others and yet it was noted that predominantly “alcoholic beverages account for a significant share of the market due to the high consumption of beer and spirits globally”.

The analysis went so far as to flag how the global crown closures sector’s growth was “steady” and essentially “driven by the increasing demand for packaged beverages across the globe”.

Even though it was observed how “metal closures continue to dominate the market, especially in the alcoholic beverage segment” there is evidence that “plastic closures are gaining traction in the non-alcoholic beverage sector due to their lightweight and cost-effective nature”.

Plus, the analysis also shone a light on the “importance of twist-off closures for convenient resealing and standard closures for traditional packaging needs” while “consumers seek convenience and sustainability in packaging” which means the leading businesses in the sector are “continually innovating to meet these evolving needs”.

The research explained: “The global crown closures market is experiencing robust growth driven by the escalating demand for packaged beverages worldwide. In addition to the traditional metal crown closures, plastic closures are gaining traction due to their lightweight properties and cost-effectiveness, attracting manufacturers and consumers alike. This trend signifies a shifting preference towards more sustainable and convenient packaging solutions in the beverage industry. The segmentation by product type, including twist-off closures and standard closures, reflects the evolving needs of consumers for resealable and user-friendly packaging options. Twist-off closures, in particular, have become popular for their convenience in resealing bottles, catering to the modern lifestyle of consumers seeking ease of use.”

The sector has come under scrutiny of late following reports that drinks sold in glass bottles have been found to contain more microplastics than those sold in plastic bottles due to “the paint on the outside of the caps” leading to this discovery.

Amid concerns, the report still concluded that there would continue to be a “focus on enhancing the user experience, improving product functionality, and reducing the environmental footprint of packaging” and insisted that the sector’s leading players within the closures sector where “reshaping the market dynamics and meeting the evolving needs of the beverage industry”.

Plus, the report pointed out that businesses could begin working together to meet such needs and added: “As competition intensifies and consumer expectations continue to rise, collaboration and innovation among market players will be crucial in staying ahead in the highly competitive crown closures market.”

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