Market Trends of Vietnam Plastic Caps And Closures Industry
Polyethylene (PE) is Estimated to Have the Largest Market Share
- Polyethylene (PE) stands out as a favored choice in Vietnam in the packaging realm owing to its chemical resistance, affordability, and resilience to environmental challenges. This versatile plastic, derived from petroleum polymers, is primarily categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE). HDPE and LDPE, the primary variants, dominate the landscape of caps and closures.
- Growing consumer spending on personal care and cosmetic products for makeup, skincare, and haircare in Vietnam has increased the use of Polyethylene (PE) or Polypropylene (PP) caps and closures. In addition, the increasing e-commerce traction in Vietnam is bolstering the sales of products, including serums, moisturizers, creams, and sprays for both men and women, augmenting the market’s growth.
- According to data from the International Trade Administration, Vietnam's internet economy is experiencing a surge, propelled by rapid internet and smartphone adoption. In 2023, Vietnam boasted approximately 69 million smartphone users, projected to climb to 82 million by 2025. This uptrend is poised to bolster the already robust e-commerce sector.
- The market for plastic caps, closures, and lids designed to endure extreme temperatures and preserve food freshness is on the rise. Vietnam's food industry, bolstered by a robust manufacturing sector, is increasingly favoring PE caps and closures. USDA data reveals that Vietnam's food manufacturing industry surged from USD 69.6 billion in 2022 to USD 73.8 billion in 2023.
Understand The Key Trends Shaping This Market
Download PDF
Beverage Segment Expected to Dominate the Market
- With international tourist arrivals on the rise, Vietnam's beverage market, both alcoholic and non-alcoholic, is witnessing a significant upswing. In 2023, data from the United States Department of Agriculture (USDA) revealed a remarkable surge in international visitors to Vietnam, peaking at nearly 12.6 million, a figure that more than tripled 2022's numbers.
- Vietnam boasts a robust retail landscape, with numerous outlets and supermarkets offering a diverse array of products spanning food, beverages, and personal care. Notably, beverage sales, including carbonated soft drinks and juices, are on the ascent. In 2023, the USDA reported that Vietnam's total retail sales hit USD 198 billion, a 4.76% increase from the previous year.
- Key players in Vietnam's caps and closures manufacturing, like Bericap Holding GmbH, are honing their focus on the beverage sector. Their products, designed for highly pressurized liquids and engineered to withstand temperature fluctuations during transport, are gaining traction. Bericap's tailored closure solutions, crafted from materials like PP, PE, and PET, resonate well with the market, further fueling demand.
- As the demand for non-alcoholic beverages, including soft drinks, energy drinks, and juices, surges in Vietnam, so does the country's import. Notably, the United States is a significant contributor to this trend. In 2023, Vietnam's beverage imports, as per the USDA, hit a value of USD 103.22 million, marking a substantial 55.59% increase from the preceding year.
