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Latin America Plastic Caps and Closures Market Analysis

The Latin America plastic caps and closures market is expected to register a CAGR of 4.5% during the forecast period (2021 - 2026).

The pandemic has also created economic turmoil for small, medium, and large-scale industries worldwide. Adding to the woes, country-wise lockdown inflicted by various governments to minimize the spread of the virus has further resulted in manufacturing industries taking a hit. The impact 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 in Latin America. However, the supply chain disruptions caused in starting four months in 2020 have resulted in order delays and lead time across the supply chain.

• Plastic caps and closures are extensively utilized in the food and beverage industry to protect and increase the product's shelf-life. This, in confluence with the escalating demand for packaged and ready-to-drink beverages, represents one of the primary factors bolstering the market growth in Latin America.
• Caps and closures use PET and PP as the primary raw materials for manufacturing. Industries rely on plastic caps and closures, as they are cost-effective sealing solutions. The demand for packaged food and pharmaceutical drugs has been increasing at a healthy rate. As an impact of this, the plastic caps and closures market is also expected to increase demand during the forecast period.
• Additionally, the increasing adoption of one-piece liner-less closures in packaged water bottles contributes to the region's market growth. Apart from this, the manufacturers are introducing flexible, airtight, tamperproof, and threaded plastic caps and closures. They are also offering customized solutions based on individual requirements. These factors are anticipated to expand plastic caps and closure in the region's pharmaceutical, cosmetics, personal care, and chemical industries.
• For instance, Bannex International Inc. is a full-service, global supplier of sustainable, high-quality packaging materials, equipment, and services. The company has been servicing the Latin American food and beverage industry for more than 30 years. Bannex provides easy-to-open closures that combine beauty, sustainable design, and superior materials, resulting in a consistent, quality product. It also supplies glass packaging, metal closures, plastic closures, and capping equipment for various food and beverage applications.
• Further, United Caps has launched bio-sourced 'greener' plastic closures. It has teamed up with Brazilian petrochemical company Braskem to produce plastic caps and closures made from sugar cane. The company has launched two standard closures manufactured using bioplastic resin from Braskem, including The Victoria closure, a 30/25 screw closure designed for still drinks, and Proflatseal, which is ideal for dairy products and still drinks, both pressurized and non-pressurized.
• Moreover, in cosmetic packaging, caps and closures are majorly used for preserving beauty products and extending their shelf life. Plastic is a prominent material in cosmetic packaging due to its low cost, lightweight, flexibility, durability, and other factors. Primary plastic resin materials used to manufacture caps and closure for cosmetic products are polyethylene and polypropylene. In addition, For personal care products, plastics are a material of choice for manufacturing caps and closures. Increasing applications of caps and closures in cosmetics and home care products is further expected to drive the Latin American market growth. The rising demand for childcare products is also likely to impact the Latin American market positively.

Latin America Plastic Caps and Closures Industry Segmentation

The Latin America plastic caps and closures market studies various segments that manufacture different types of plastic materials, such as PET, PP, HDPE, LDPE, and other materials. The end-user industries of the caps and closure market include beverage, food, pharmaceuticals and healthcare, cosmetics and toiletries, and other end-users, such as household chemicals like detergents, cleaners, soaps, and polishes, automotive cleaners, paints and coatings, and chemicals, among others. The study also tracks the impact of COVID-19 on the overall plastic caps and closures market.