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Middle East and Africa Plastic Caps and Closures Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • October 2021
  • Region: Africa, Middle East
  • Mordor Intelligence
  • ID: 5458947

The Middle East and Africa Plastic Caps and Closure market are expected to register a CAGR of 3.8% over the forecast period (2021 - 2026). The impact of Covid-19 on the plastic caps and closures market is very minimal. It supports the end-user industries such as beverages, food, pharmaceutical and healthcare, cosmetics and toiletries, etc., which come under essential services and were not discontinued even amidst the lockdown restrictions. However, the supply chain disruptions caused in starting four months in 2020 have resulted in order delays and lead time across the supply chain.

Key Highlights

  • Food consumption has been witnessing high growth. This has led to a demand for packaged food products with longer shelf life and sterility. Companies around the region are manufacturing packages, which help achieve these objectives so that manufacturers of food products can transport and sell their products to the end customers. Changing demographics in this industry are demanding innovations in products. With the market changing rapidly, company needs are also changing.
  • Furthermore, nanotechnology in convenience food manufacturing has played a crucial role in improving critical functions, including preservation procedures, packaging methods, and finished goods processing. Thus, this trend is anticipated to play a significant role in increasing the usage of containers for packaged food products, which is expected to increase the demand for various closures.
  • In addition, the increasing prevalence of chronic conditions such as cardiovascular disease and other illnesses has raised the demand for numerous pharmaceuticals. As a result, the need for effective packaging solutions in the pharmaceutical sector increases, expanding the market's potential opportunities.
  • Environmental concerns have increased interest in alternative packaging that includes pouches and paperboard cartons. The growth in these closure-less formats may restrain the growth of the market studied in the future.

Key Market Trends

Pharmaceutical and Healthcare Plays a Significant Role

  • The private sector in the industry is expected to play a major role over the coming years, as Saudi Arabia is looking to invest over USD 66 billion in healthcare infrastructure and boost private sector participation from 40% to 65% by 2030, according to Gulf Cooperation Council (GCC) report.
  • In line with the growing contribution from the private sector, Saudi Arabia is looking to partner with major global enterprises to expand its presence. For instance, in February 2021, the country's Ministry of Interior and Switzerland-based pharmaceuticals company Roche Products signed an MOU to develop the Kingdom’s healthcare and life sciences sector. Such developments will drive the market.
  • Pharmaceutical packaging involves collecting materials selected carefully to preserve and protect the drug and allow the customer or the patient to use it safely. The main plastic materials cast-off for the manufacture of pharmaceutical containers are polyolefins, type Polyethylene (HDPE or LDPE) and polypropylene (PP); Polyethylene terephthalate (PET); and other copolymers, owing to which the demand of caps and closures increases in this segment.
  • As some customers face issues with opening caps and closures by a child or an old-aged person, smart and anti-counterfeiting packaging solutions became the fastest developing requirements, making the technology a perfect fit to further extend the extensive range of closures the pharma sector.
  • The downside of using plastic caps and closures with a medicine, or a solution rather than glass or metal, is the possibility of plastic materials interacting with the product using transferring leachables. If that is the case, glass packaging or metal caps and closures may restrain the growth.

Polyethylene Terephthalate (PET) is Observing Significant Increase

  • The majority of soft drinks are packaged in bottles made from polyethylene terephthalate (PET), as PET is good at retaining CO2. PET also found its applications in markets, such as fruit juice packaging and sports drinks, and it is also used in bottles for cooking and salad oils and sauces.
  • Furthermore, the rising health and wellness trend, owing to the rising obesity and diabetic populations in various countries, is expected to drive demand for healthy drinks, resulting in increased demand for fruit drinks, energy drinks, and other beverages, influencing the plastic caps and closures market.
  • This industry is heavily dependent on inputs for manufacturing. PET, which is used as raw material, has highly fluctuating costs in the market. As the cost of production is dependent on these raw material costs, manufacturers are finding it difficult to maintain constant output.
  • Owing to its barrier properties against carbon dioxide (CO2) and oxygen (O2), PET can also be used for food packaging. It is microwave-resistant and is largely used in several food chains.
  • Technological breakthroughs in lightweight solutions and an increasing emphasis on sustainability and recycling are some of the trends in PET packaging. Another rising trend is the use of compression technologies in PET manufacture. Many foods and beverage firms are working on boosting recycled PET content for all of their goods between 2020 and 2025 in response to the growing trend of recyclability.

Competitive Landscape

The Middle East and Africa Plastic Caps and Closures market is partially consolidated with the presence of numerous players manufacturing various products in the market.

  • Feb 2020 - Silgan Holdings Inc., one of the prominent providers of rigid packaging for consumer goods, has announced the acquisition of Cobra Plastics, Inc. This company manufactures injection-molded plastic closures for a wide range of consumer items, emphasizing the aerosol overcap industry. Silgan will offer a greater choice of integrated solutions, including functioning overcaps, as a result of the combination of Cobra's overcap product line with its aerosol actuators and dispensing systems.
  • March 2021 - A specialized worldwide rigid healthcare packaging and device business unit has been established by Berry Global. The global rigid healthcare packaging and device business, which has expanded sales from USD 500 million in 2015 to more than USD 1 billion, is one of the company's initiatives. To strengthen its position within this industry.
  • June 2021 - The 38mm D-KF foil-lined HDPE closure from Closure Systems International (CSI) is the company's newest addition to its liquid dairy offering. The CSI 38D-KF closure features an accessibility-friendly half-moon type foil liner that provides dual tamper evidence and a shelf-reinforced seal. On HDPE and PET bottles, the 3-lead design is precision-engineered to guarantee reliable performance.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Industry
5.1 Market Drivers
5.1.1 Increased Demand for Innovative Solutions from End-Users
5.2 Market Restraints
5.2.1 Lightweight And Cost-effective Stand-up Pouch Packaging
6.1 By Material
6.1.1 PET
6.1.2 PP
6.1.3 LDPE and HDPE
6.1.4 Other Materials
6.2 By End-user Industry
6.2.1 Beverage
6.2.2 Food
6.2.3 Pharmaceutical and Healthcare
6.2.4 Cosmetics and Toiletries
6.2.5 Household Chemicals
6.2.6 Other End-user Industries
6.3 By Country
6.3.1 Saudi Arabia
6.3.2 Egypt
6.3.3 Iran
6.3.4 Nigeria
6.3.5 South Africa
6.3.6 Rest of Middle East and Africa
7.1 Company Profiles
7.1.1 Berry Plastics Corporation
7.1.2 Aptar Group, Inc.
7.1.3 Crown Holdings, Inc.
7.1.4 Portola Packaging
7.1.5 Bericap
7.1.6 Mocap
7.1.7 Mold Rite Plastics
7.1.8 Silgan Plastics
7.1.9 Alpha Packaging
7.1.10 All American Containers
7.1.11 MJS Packaging
7.1.12 Closure Systems International

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Berry Plastics Corporation
  • Aptar Group, Inc.
  • Crown Holdings, Inc.
  • Portola Packaging
  • Bericap
  • Mocap
  • Mold Rite Plastics
  • Silgan Plastics
  • Alpha Packaging
  • All American Containers
  • MJS Packaging
  • Closure Systems International