Market Studies

Información Técnica

MARKET STUDY ON CROWN CORK

The crown cap is an everyday item to which we owe a great deal. In Spain and South America it is popularly known as chapa, in Mexico as corcholata, in Panama as platillo, in Colombia as tapa and in Ecuador as tillo. Without this small and simple element, bottlers would not have such an economical way to hermetically seal beer productions and avoid constant leakage and evaporation of carbon dioxide.

Let’s make a little history. In 1892, Irishman William Painter was the creator of the crown cap, which was patented in Baltimore after having previously created more than 1,500 different caps. Another curiosity, the crown cap was designed expressly for the Cork Crown and Seal Company (now Crown Holdings), of which Painter was the founder, and it was not until 1911 that his invention was marketed worldwide.

Originally, the metal stopper was covered on the inside by a thin cork disk, which was also covered by a special film that sealed the contents of the bottle. Today a thin film of transparent plastic material is used. Closure technology is currently facing the global challenge of the circular economy.

As for the volume of profit in this sector, last year it moved a figure close to $398 million, but if we compare it with 2019 its growth rate contracted by 6%. In the case of imports, five years ago the turnover generated was US$430 million, in 2017 it reached US$457 million while in 2019 that volume dropped to US$396 million.

In terms of exports globally, in 2016 the volume generated was $418 million, a figure that increased slightly in the following two years to $421 million while in 2020 that figure plummets to $340 million as a result of the decline in demand caused by the Covid-19 pandemic, which has affected all sectors of the economy globally.

1. Importing countries of crown caps

In 2020, the U.S. led the world market as the main importer of crown cork, followed by Nigeria. In third place in the ranking is the European continent, with Spain, France, the United Kingdom and Germany standing out, while Canada, Brazil and Chile follow closely behind.

List of importing countries for the selected product in 2020. Base metal crown caps.

 

 

1.1. USA

The U.S. giant leads the global ranking. According to the latest data analyzed, in 2020, exports of base metal crown caps reached 82 million units, confirming its leadership as a global crown cap demander. North America is one of the fastest growing markets in recent years, especially during the post-pandemic period, with household consumption of canned and bottled beverages increasing by more than 40% as a result of confinement.

USA together with Canada, are the most important markets in North America in both the food and beverage sectors. According to FDF, Mexico is the main importer of crown cork to the U.S. market. Since 2016 it continues to lead that ranking, that year the U.S. exceeded $90 million, a trend it maintained the following two years until 2017 where there was a significant decline and in 2020 it only reached $60 million.

Mexico is the main importer of crown cork to the USA. followed by Italy with an infinitely lower volume than its predecessor, which leads the market due to its proximity to the USA. Italy exported to the USA a very small volume, in 2016 it was 5 million USD while in 2020 there was a slight increase to 15 Million USD.

Ukraine entered this ranking in 2018 with a minimal presence while in 2020 it rose to USD 5 million. Greece and Germany are the other two U.S. suppliers whose levels are very similar and barely reached USD 5 million in the last year on record.

List of supplier markets for a product imported by the United States of America. Base metal crown caps.

 

1.2. Nigeria

Nigeria with almost 30 million units, confirming the African continent as another niche for beverage brands. Demographic growth on the continent and the exodus to the big cities is causing the population to demand more and more processed products such as bottled beverages in which the crown cap is used.

As mentioned above, Nigeria deserves special mention for its spectacular growth. In relation to the list of supplier markets for products imported by Nigeria, South Africa is the most important. In 2016 it was USD 5 million while in 2020 it reached USD 21 million crown cap. Greece is also another player, in 2016 its presence is barely one million while in 2020 it is 3 million. In the case of India, the figure has remained stable over the last four years without exceeding 2 million caps. In the case of Spain, it experiences a decrease in 2018 to reach minimum values but last year it was 2 million.

List of supplier markets for a product imported by Nigeria. Base metal crown caps.

 

1.3. Europa

Following the list of demanding countries, Europe is consolidated as the third continent with the highest demand, specifically France with 19 million USD, followed by Belgium with the same number and Germany with 15 million USD, all of them with a long brewing tradition.

Spain, for its part, ranks sixth in the table with 14 million USD of crown cork, closely followed by the United Kingdom with 13 million and Portugal with 10 million. It is significant that Tanzania is in the middle of the table with the same quantity as the Portuguese country, which confirms the significant growth in imports of the crown cap product on the African continent.

At the bottom of the table are Brazil, Chile, Saudi Arabia, Mozambique, Hungary, South America and Russia, all with a demand that does not exceed 5 million units each.

 

2. Crown cork exporting countries

In terms of exporting countries worldwide in 2020 lead the list Italy with 110 million USD, second place goes to Mexico with 50 million crown cork caps, Germany with 30 million is third followed by Saudi Arabia with 20 million and France with 15 million, is among the top five. In the middle of the table are Spain, Egypt and Honduras with 5 million, while at the bottom of the table are Serbia, Costa Rica and Belarus with minimal values.

List of exporting countries for the selected product in 2020. Base metal crown caps.

 

2.1. ITALY

If we analyze the list of importing markets for caps exported by Italy, in 2016, the Gallic country is at the top with more than 16 million USD of crown cork, a figure that drops slightly in 2020 with 15 million. By volume of importance it is followed by Germany, which in 2016 reached USD 10 million, a figure that has been progressively increasing in recent years to consolidate in 2020 at 12 million. In the case of the UK as a major power, in 2016 it was 10 million while in 2020 it consolidates at 12 million. In the case of Low Countries such as Spain, they maintain similar values, with an average of USD 8 million of crown cork.

List of countries importing crown cork manufactured in Italy. 2016 – 2020. Base metal crown caps.

 

2.2. Mexico

In the case of Mexico, this is one of the main import markets of the United States for reasons of proximity. In 2016 it went on to export to the neighboring country more than 80 million crown cork caps achieving an all-time record not surpassed in subsequent years. Despite maintaining close values, these export figures have been gradually reduced over the years to 55 million caps exported to the neighboring country. Canada is far behind as the second most important receiving country, also for reasons of proximity and population, with an emerging and powerful market, but with a demand much lower than that of the United States. Specifically, in 2016, nearly 5 million crown cork caps were exported, a figure that has been maintained in recent years, although in 2020 demand was non-existent due to the coronavirus. Argentina, Bahamas and Brazil are other main receiving countries, but with minimal values.

List of import markets for a product exported by Mexico. Base metal crown caps.

 

2.3. Germany

In the case of Germany, if we analyze the list of importing markets for a product exported by the Germanic country, Belgium surprises, which reached stratospheric results in 2018 to reach the barrier of 13 million USD figure that slightly drops to 12 million in 2020. Far behind are other countries such as the Netherlands with figures hovering around 6 million in 2016, a figure that increased slightly last year with 8 million. Austria remains from 2016 to 2020 with an average of 4 million while for the UK the figure remains at 2 million. In the case of Poland, 2020 will end with a slightly higher figure than its predecessor.

List of import markets for a product exported by Germany. Base metal crown caps.

 

 

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *