CAP APPLICATOR MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

The growing food and beverage industry with the growing demand for packaged food products is expected to propel the market growth of the cap applicator over the forecast timeframe. Cap applicator is used to packaged beverages and other food products in order to maintain the freshness until the time of opening. According to the India Brand Equity Foundation, the Indian food processing industry accounts for 32 percent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

The booming packaging industry, especially across developing countries is projected to augment the market growth of the cap applicator. According to the Coherent Market Insights analysis, plastics caps & closures accounted for 74% of the global packaging industry sales which is projected to be the fastest-growing packaging material due to the manufacturer's preference in ease of processing and consumer preference for safety and convenience. Hence, the growing packaging industry is expected to foster the market growth of the cap applicator. 

Market Restraints

Long-life cycle & low replacement rate for cap applicators is expected to impact the profitability of the manufacturer resulting in lower sales volume for packaging manufacturers. Hence, this factor is projected to hinder the overall sales of cap applicators, in the long run, thereby hindering the market growth of the cap applicator.

The availability of other packaging technology for the packaging of the product is expected to impede market growth. Packaging system which does not require capping and also offer freshness to the product such as tubes, cans, etc. is anticipated to restrict the market growth of cap applicators over the forecast period.

Market Opportunities

The growing adoption of caps and closure in the pharmaceutical industry for sealing the pharma product is expected to accelerate the market growth of the cap applicator. Caps and closure offer a completely humetic seal and effective microbiological seal which helps to prevent the contamination of the medical products. Thus, the rising demand for cap and closure from the pharmaceutical industry will favor market growth over the forecast period.

Increasing usage of caps and closure systems for packaging of personal care & cosmetic products is expected to foster the market growth of the cap applicator. New designed of closure can easily attract customer attention due to captivating design and also ensure ease of use. Caps and closure are widely used to seal the conditioners, shampoos, and lotions. Hence, the growing demand from the personal care industry is expected to propel the market growth of the cap applicator. 

Figure 2. Global Cap Applicators Market– Opportunity Analysis