Disposable Paper Cups Market Dynamics and Trends by 2028

[Research Report] The disposable paper cups market was valued at US$ 8,714.28 million in 2021 and is projected to reach US$ 11,039.14 million by 2028; it is expected to grow at a CAGR of 3.4% from 2021 to 2028.

Market Insights and Analyst View:

Disposable paper cups are used to package hot as well as cold beverages such as coffee, tea, fruit juices, milk shakes, soups, among others. They are generally coated with materials such as polyethylene, wax, and other which make them leak-proof. These cups are available in different sizes, shapes, colors, and prints. Moreover, they are easily customizable. Rising consumption of on-the-go coffee is one of the primary factors driving the disposable paper cups market growth. Moreover, rising replacement of plastic packaging products with paper-based products is also propelling the market growth. Furthermore, growing penetration of fast food chains such as Starbucks, McDonalds, among others is also projected to boost the disposable paper cups market growth in the coming years.

Growth Drivers and Challenges:

Rising demand for food service sectors has been driving the global disposable paper cups market growth. The global foodservice sector is rapidly expanding with rising number of people preferring to go out in cafes, restaurants, and fast food joints with their friends and family. Evolving lifestyles of people owing to hectic work schedules and rising per capita income is one of the major reasons why people are choosing to eat at quick service restaurants (QSRs) and fast food outlets. Moreover, the trend of spending time with family and friends on weekends is also propelling the growth of foodservice sectors further boosted the disposable paper cups market growth. Additionally, rising preference for takeaway services and online food delivery services owing to penetration of internet and convenience offered by such services is also further driving the growth of foodservice sector across developed as well as developing countries. Over the past few years, there has been growing inclination towards on-the-go beverages and takeout drinks like coffee, soda, and thick shakes, among others due to emerging eating habits of customers. Majority of the people prefer having coffee during their breakfasts, after lunch, and evening hours to energize themselves. People in the corporates, working for extended hours highly prefer having tea or coffee during their work hours to feel stress free. Owing to these factors, the demand for on-the-go coffee and tea has increased significantly. Therefore, with rising number of tea and coffee lovers, the demand for disposable paper cups is also rising. Disposable paper cups are easy to customize, and manufacturers offer the product with attractive prints and variable sizes. The fast food giants offer beverages in disposable paper cups with customized prints and brand logos. This provides their brand a unique identity. Moreover, prominent fast food companies like McDonalds, Starbucks, Dunkin Donuts, among others have completely replaced the plastic disposable foodware by paper disposables owing to growing concerns related to environment. Moreover, in many countries, the use of single-use plastic is prohibited due to growing plastic waste. This factor has generated a huge demand for paper disposable cups from the foodservice sector across different regions. Therefore, rising demand for disposable cups from the foodservice sector is one of the significant factors propelling the growth of the global disposable cups market.

According to the data given by EarthDay.org, every year, 16 billion disposable coffee cups are used in the US. The UK alone consumes over 2.5 billion single-use paper coffee cups each year. These cups comprise of inner plastic lining and plastic lids. These cups are clogging the oceans, lakes, and rivers, as well as accumulating on land, posing a threat to the plants and wildlife. Consumers have been increasingly concerned about the environment in recent years, and many products that are hazardous to the environment have been phased out. As a result, recyclability concerns may restrain customers from using disposable paper cups, limiting global disposable paper cups market growth in the coming years.

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Disposable Paper Cups Market: Strategic Insights

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Report Segmentation and Scope:

The “Global Disposable Paper Cups Market” is segmented based on material, end user, and geography. Based on material, the disposable paper cups market is segmented into air-pocket insulated, poly-coated paper, wax-coated paper, and others. Based on end user, the disposable paper cups market is segmented into food service, retail, and institutional & industrial. The disposable paper cups market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

Segmental Analysis:

Based on end-user, the disposable paper cups market is bifurcated into food service, retail, and institutional & industrial. The food service segment held the significant share in the disposable paper cups market growth and is expected to register the significant growth over the forecast period. The rising adoption of coffee and growing interest in different types of coffee roasts and brews are driving the demand for disposable paper cups across the residential sector. Furthermore, due to the outbreak of COVID-19, people were mandated to stay at home and all the foodservice outlets remained shut. This triggered the demand for disposable paper cups across the households, especially in developed countries. All these factors are potentially boosting the disposable paper cups market worldwide.

Regional Analysis: 

Based on geography, the disposable paper cups market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global disposable paper cups market was dominated by North America in 2021, and it is expected to grow at a CAGR of 3.0% from 2021 to 2028. Europe is a second major contributor holding more than 20% share in the global market. Asia Pacific is expected to register the considerable growth at a CAGR of over 5% over the forecast period. The US, Canada, and Mexico are the major countries in North America. The disposable paper cups market in North America is expected to account for a significant market share owing to rapidly increasing demand from the foodservice sector across the region. The foodservice sector is expanding at a rapid pace across the US and Canada. According to the data released by the Economic Research Service of the United States Department of Agriculture (ERS USDA), in 2020, the foodservice sales in the US accounted for US$813.4 billion. As a result, the rapidly growing foodservice sector in North America is expected to considerably contribute to the region's increased demand for disposable paper cups.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the disposable paper cups market are listed below:

1. In February 2018, Duni Group acquired 75% shares in Kindtoo Ltd., a leading supplier of disposable food packaging in the UK. The acquisition was made to expand Duni Group’s Business Area Meal Service.
2. In November 2021, Graphic Packaging International, LLC completed the acquisition of AR Packaging, a fiber based consumer packaging solutions company. The move was made to further accelerate the global market position of Graphic Packaging International, LLC in fiber-based packaging solutions.
3. In July 2021, Graphic Packaging International, LLC introduced a line of non-PE coated foodservice packaging called OptiCycle. The innovative line of products will enable paper cups to be entirely recyclable as 98% of fiber can be recovered from the packaging.
4. In May 2021, Seda International Packaging Group became member of European Organization for Packaging and the Environment – EUROPEN, an organization aimed towards exposing the market opinions of industry leaders to relevant European stakeholders.

Disposable Paper Cups Market Regional Insights

The regional trends and factors influencing the Disposable Paper Cups Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Disposable Paper Cups Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Disposable Paper Cups Market Report Scope

Disposable Paper Cups Market Players Density: Understanding Its Impact on Business Dynamics

The Disposable Paper Cups Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the consumer goods industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Due to the pandemic-induced economic recession, consumers became more cautious and selective in their purchasing decisions. Non-essential purchases were significantly reduced by consumers due to lower incomes and uncertain earning prospects, especially in developing regions. Many manufacturers of disposable paper cups faced decline in profits due to reduced consumer demand during the initial phase of pandemic. However, by the end of 2021, many countries were fully vaccinated, and governments announced relaxation in certain regulations including lockdowns and travel bans. People started travelling to different places which increased the demand for the beverages, healthy drinks, boosting the disposable paper cups demand. All these factors had a positive impact in the disposable paper cups market growth across different regions.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global disposable paper cups market include Huhtamaki; Dart Container Corporation; Duni Group; Graphic Packaging International, LLC; F Bender Limited; Seda International Packaging Group; CEE Schisler Packaging Solutions; Grupo Phoenix; SCG PACKAGING; Reynolds Group Ltd. among others. These players offer cutting-edge disposable paper cups with innovative features to deliver superior experience to the consumers.