Paper cups have widespread applications in various end-use industries such as food service, retail, institutional and household. They are extensively used for serving hot and cold beverages like coffee, tea, soups and other food & drinks. Paper cups are often preferred over plastic and foam cups by numerous quick service restaurants, coffee shops, cafes and other food outlets due to their eco-friendliness. The rising popularity of on-the-go consumption trends and busy lifestyle has propelled the demand for paper cups from the food & beverage industry.
The global paper cups market is estimated to be valued at US$ 98.81 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:
Increased adoption in food & beverage industry: As mentioned earlier, the flourishing food & beverage industry has emerged as a key end-user for paper cups. Factors such as growing inclination towards coffee and rapid expansion of QSR and fast food chains have augmented the sales of paper cups. Moreover, paper cups are considered more environmental friendly than plastic and foam options, which makes them preferable for several food brands targeting conscious consumers.
Increased awareness about environmental issues: Rising environmental concerns among public about plastic waste and its adverse impact on the planet is driving the demand for eco-friendly alternatives like paper cups. Various government regulations targeting single-use plastic are also encouraging F&B outlets and quick service restaurants to shift towards paper packaging like cups. Sustainable paper cups certified by Forest Stewardship Council are gaining more acceptance from socially responsible organizations and institutions.
Segment Analysis
The paper cups market is dominated by the plastic-coated paper cups sub-segment which has a market share of around 65%. Plastic-coated paper cups are preferred over regular paper cups as they provide better heat resistance and are waterproof. They can withstand hot liquids for longer durations compared to regular paper cups. Plastic coating acts as a protective layer and prevents the cup material from getting soggy thus providing enhanced durability.
PEST Analysis
Political: There are various environmental regulations regarding the usage of plastic in many countries which can impact the demand for plastic coated paper cups in the future. However, paper cups being recyclable receives support from various governments.
Economic: The rising disposable incomes and fast paced lifestyle leading to increased consumption of takeaway food and beverages from cafes and restaurants is driving the paper cups market.
Social: Paper cups have become popular as a single-use convenience product for on-the-go consumption. The growing trend of eating out and ordering food delivers is fueling the paper cups market.
Technological: Manufacturers are focusing on developing paper cups with advanced properties like heat resistance for longer durations without risk of leakage and easy recyclability to cater to the evolving customer needs.
Key Takeaways
The Global Paper Cups Market Size is expected to witness high growth over the forecast period fueled by increasing demand from the foodservice industry catering to the on-the-go consumption trends. The global paper cups market is estimated to be valued at US$ 98.81 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates the global paper cups market owing to significant consumption in the region. The Asia Pacific region is projected to be the fastest growing market for paper cups during the forecast period with China, India emerging as highly lucrative countries.
Key players: Key players operating in the paper cups market are Graphic Packaging International, Dixie Consumer Products LLC, Dart Container Corporation, Genpak LLC, and Cold Cup Company.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
