China Plastic Caps Market Trends

Growth Drivers

• Higher Production of Plastic – Increased production of high-quality plastic is expected to augment the production of plastic-made products in China. Every month, China generates almost 7 million metric tonnes of plastic products. The greatest monthly production of plastic goods since January 2020 was around 8 million metric tonnes in December 2021.

• Higher Use of Plastic in Packaging– Products in plastic packaging preserve their flavor, aroma, and nutritional value while being secured from external contamination. Therefore, plastics are highly used in packaging. The total estimated annual household plastic packaging consumption in China is 19,800 tonnes, out of which the total consumption of cans and containers, and PET bottles is around 3,800 and 5,500 respectively.

• Rising Use of Bottles for Water and Beverages – Most water bottles and both carbonated & non-carbonated beverages used plastic caps from sealing the content.  Around 11 million metric tonnes of soft drinks were produced in China in November 2022. Furthermore, the sale revenue of soft drinks in the year 2022 was around USD 126 billion.

• Introduction of Better Plastic Caps and Grips – The International Technical Centre for Bottling and Related Packaging CETIE introduced a new standard for the neck of the cap, which is GME 30.40 to curb the weight of the neck and closure. Moreover, BERCAP launched around 7049 closures that matched the GME 30.40 standards for neck finish.

• Low Production Cost of Plastic– The cost of plastic production in China is estimated to be cheap owing to low labor costs, the abundance of raw materials, and higher factory working hours.  The price of plastic products is around 30% to 75% lower than in the United States.

Challenges

• Existence of Alternatives to Plastic Caps - The increasing option of materials that can be used to make caps is likely to hinder the market growth. For instance, in alcoholic beverages, cork closures and aluminum caps are used. On the other hand, in glass bottles generally, metal caps are used. Furthermore, rubbers are highly used when re-sealing is required, such as in pharmaceutical bottles. The primary barrier to the expansion of the plastic cap market is rubber, which competes with plastic even in plastic container closures.
• Negative Impact of Plastic on the Environment
• Various Policy Launched by the Government to Reduce Plastic-Usage