Paper cups have been widely used for serving beverages and food in the food service industry. They are used to serve hot and cold drinks like coffee, tea, soda, juices, etc. at restaurants, cafes, fast food joints, and other commercial establishments. Paper cups help in maintaining hygiene as they are disposable and also aid in portion control. They come in various sizes and shapes as per the needs of different food items. Paper cups with lid and sleeve are commonly used by quick service restaurants and cafes for “on-the-go” consumption. The global paper cups market remains driven by the growing food service industry. Increasing prominence of takeaway culture across both developed and developing countries is bolstering the demand for paper cups from the foodservice outlets.
The global paper cups Market is estimated to be valued at US$ 74.5 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing food service industry is one of the major drivers of the global paper cups market. Increase in number of quick service restaurants, cafes, takeaway joints, etc. has boosted the uptake of paper cups for serving food and beverages. Moreover, rising disposable incomes and urbanization in developing countries is further fueling the out-of-home food consumption, thereby driving the paper cups market growth. Another key factor propelling the market expansion is the preference of paper cups over plastic cups owing to their eco-friendly nature. Many countries and local authorities have imposed bans or strict regulations on plastic and polystyrene cups which has augmented the demand for paper-based alternatives.
Segment Analysis
The paper cups market size is segmented into hot cups and cold cups. Hot cups dominates the market with over 70% share as paper cups are highly used for serving hot beverages like coffee and tea in offices, events and gatherings. Hot cups are preferred over other alternatives because of properties like heat resistant coating, double wall design etc which prevent heat transfer to hands.
PEST Analysis
Political: There are no major regulations impacting the paper cups market. However, some countries have banned plastic cups and promoted paper cups which is driving growth.
Economic: Rise in disposable income is increasing consumption of beverages from cafes, restaurants and takeaways. This drives the demand for paper cups from the foodservices industry.
Social: Changing lifestyles and preference for convenience foods is promoting the use of paper cups for on-the-go consumption. Moreover, paper cups are considered eco-friendlier than plastic and polystyrene cups.
Technological: Manufacturers are focusing on advanced coating and lamination techniques to make paper cups heat resistant, durable and provide better graphics. Some cups come with sleeves, snap-on lids and other features for improved user experience.
Key Takeaways
The global paper cups market is expected to witness high growth during the forecast period of 2023 to 2030.
Regional analysis comprises North America dominates with a share of over 30% owing to large food and beverage industry in US and Canada. Asia Pacific is the fastest growing region supported by rising disposable incomes, urbanization and expansion of QSR chains in countries like China, India.
Key players operating in the paper cups market are Huhtamaki, Dart Container Corporation, Konie Cups International, International Paper Company, Genpak, etc. Key players focus on capacity expansions, new product launches catering to evolving customer needs. For example, Huhtamaki recently launched paper cups with thinner and stronger walls to reduce material usage without compromising strength.
