Metal Closures Market Report

The metal closures market is gaining huge demand due to increasing growth in the wine segment, which offers a lucrative opportunity for the metal closures market. According to the data of the World Trade Organization, the global production of wine in 2000 was approximately recorded at 22%, in the past 2 years, the global production of wine has approximately doubled and has reached the mark of 42%. This upper trend suggests that the production of wine will be touching new heights. Also, the global consumption of wine has experienced a sharp growth where the consumption grew from 25% to 45% from 2000 to 2024, which indicates that the taste of consumers has become more diversified internationally. It is also measured that international trade for wine products has almost tripled over the past two decades. The global trade for wine and wine products had risen from US$ 17.7 billion in 2000 to US$ 50 billion in 2021 and 2022, where 76% of the amount was traded for wine, which is US$ 38 billion, and the remaining 24%, which is US$ 18 billion, includes fresh and dried grapes and grape juice. Thus, the rising sale of wine is fuelling the growth of the metal closures market.

Challenges faced by various small businesses are mainly related to the cost factor. Using metal closure is considered an expensive option compared with its alternatives, such as cork or plastic. Due to available alternatives, the metal closures market faces a lot of challenges. Also, historically, the use of wooden and glass stoppers was preferred, which again creates an obstacle for the metal closures market. Also, the growing popularity of plastic closures is hampering the demand for metal closures as they offer the feature of cost-effectiveness and are lighter compared to metal closures. It is expected that the use of VCI shrink films will be gone to replace metal closures, which consist of the same features as metal closures. Also, due to metal and its properties, the customization on it is limited, and sometimes the brand logo on it may get erased, whereas alternatives such as plastic and wood pose a quality of customization as well as the brand name and logo staying for a longer period of time.

In September 2023, Eviosys introduced a new metal closure called Horizon that allowed users to have mono-material packaging. This innovative metal closure was designed to help businesses reduce their environmental impact by increasing the recyclability of their packaging. It was a significant step towards sustainable packaging solutions and was expected to revolutionize the packaging industry. The Horizon closure was easy to use, cost-effective, and offered superior product protection. With this new development, Eviosys aimed to promote a circular economy and help businesses meet their sustainability goals. In May 2021, ALTANA completed the acquisition of Henkel's closure material business. The business was integrated into the ACTEGA division under the metal packaging solutions business line. With this acquisition, the company aimed to continue providing high-quality and innovative solutions to its customers while also driving growth and profitability in the industry.

North America and Europe present themselves as a lucrative market, as according to the OEC, the global trade for beverages, spirits, and vinegar, out of a total of US$ 145 billion of international trade in 2022, a total of US$ 62.12 billion of trade was carried out in the North America and Europe region. The imports of the United States amounted to US$ 30 billion, and the trade of the United Kingdom, Germany, Netherlands, and Canada was US$ 9.32 billion, US$ 9.29 billion, US$ 7.16 billion, and US$6.35 billion respectively, making North America and Europe a promising market, as among the top five imports, three belong to the Europe region and two are from North America, which make both the region a prominent player in the beverage market and indirectly for the metal closures market.

Also, the Asia Pacific region can be considered a promising opportunity for the pharmaceutical market, as according to the Indian Brand Equity Foundation, the total market for the pharmaceutical market is estimated to reach US$ 130 billion by the end of 2030. Also, in China, according to the ENGLISH.GOV.CN, THE STATE COUNCIL, THE PEOPLE'S REPUBLIC OF CHINA, in 2021 the beverage industry saw a growth of 12% where 183 million tons of beverages were produced by China, which shows lucrative opportunities for the metal closures market.