North America Biodegradable Straw Market - 2022-2029

North America Biodegradable Straw Market - 2022-2029

Market Overview

The North America Biodegradable straw market size was worth US$ XX million in 2021 and is estimated to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of XX% within the forecast period (2022-2029).

The term ""biodegradable"" refers to straws derived from plants that can decompose in the environment. They are created from naturally occurring plant materials such as cornstarch or sugar cane, which are renewable resources.

Manufacturers seek solutions that are convenient for consumers and environmentally friendly; biodegradable materials are among the top priorities for manufacturers. These days, biodegradable straws are a recyclable and stylish trend, as interiors of bars, restaurants, and homes include glass straws for the touch of elegance to dining tables.

Thus, the growing demand for biodegradable straws due to the diversity of possibilities available when materials are considered is boosting the market share for the product in the North American region. Furthermore, with rising food and beverage consumption in countries like the U.S. and Canada, individuals are increasingly opting for environmentally friendly goods over plastic, fueling the growth of the biodegradable straws market.

Market Dynamics

Rising North American government support to reduce plastic and the consumption of its products in the region has created immense opportunities for biodegradable straws.

Rising North American government support to reduce the plastic and the consumption of its products in the region has created immense opportunities for biodegradable straws

In U.S., almost 500 million plastic straws are discarded every day, but restaurants and hotel chains have begun to favor eco-friendly straws in recent months. Strict rules governing the use of plastic straws in countries and cities throughout the region are driving eateries and cafés to rely on alternative straws, bolstering the biodegradable straws industry.

For instance, from 2010 to 2017, San Francisco, California, instituted a plastic bag ban, which resulted in a 72% reduction in plastic trash on local beaches. Furthermore, in North America, numerous local and national initiatives and events have encouraged consumers and businesses to reduce their usage of single-use plastic.

These elements contribute to the growth of the biodegradable straw market since they are now widely available in restaurants and cafes. Many new start-ups have sprung up in North America to capitalize on this new trend in recent years.

Further, many leading manufacturers are launching straws based on biodegradable materials, due to which the demand for paper straws made from these materials has been propelled. For instance, on November 21th, 2019, WinCup launched a new line of biodegradable straw made from Danimer Scientific’s Nodax polyhydroxyalkanoate (PHA) extracted from a home-compostable material, canola oil and soil-biodegradable materials.

Further on December 5 2019, Jose Cuervo launched sustainable new biodegradable straws. The project was the development of the sustainable alternative to plastic straws, made from upcycled agave fibers: a first-of-its-kind biodegradable, bio-based drinking straw that decomposes 200 times faster as compared to regular plastic straws

The high cost of paper straws is hurdling the market growth for the product in the North American region

Paper straws are preferred by various food chain restaurants, cafes, hotels due to strict government rules and regulations regarding plastic usage. Plastic straws cost less as compared to paper drinking straws. Due to sophisticated procedures such as tree cutting and pulp and paper production, which is subsequently molded to produce straws of desired size, shape, and color, paper straw manufacturing is more expensive than plastic or latex straw manufacturing.

As per the clean water action organization, paper straws cost roughly 5 to 12 cents per unit, while plastic straws cost under 2 cents per unit. Hence the buying behavior of the people towards the paper straws is less due to the high cost of the paper straws

Furthermore, most types of paper straws lose % to 90 % of their compressive strength after being exposed to a liquid for less than 30 minutes, making them difficult to use for consumers. Another factor limiting market expansion is the ability of these straws to absorb 30% of the liquid in which they are being used within 30 minutes.

However, several countries' governments have banned plastic straws due to rising environmental concerns and a surge in strict plastic ban policies.

COVID-19 Impact Analysis

North America biodegradable straws market is adversely affected due to the COVID-19 as several countries were in the lockdown state. As Biodegradable straws are most commonly used in hotels, bars, lounges, restaurants, cafes, cinema theaters and motels, these food services businesses have been closed since April 2020 in several countries. The majority of sales of biodegradable straws hence declined since May 2020.

After June, the demand for Biodegradable straws has slightly gone up due to increased sales of sweetened beverages, soft drinks, etc., in the U.S. and Canada. The Biodegradable straws market will slightly increase as several countries have planned to reopen restaurants, hotels, cafes, and many more, raising the demand for biodegradable straws.

During the covid-19 pandemic, the North American government has not taken any initiative to support the biodegradable straws sector. There are several reasons behind this, including biodegradable straws, and they are not utility products; they are more convenient. The government was focusing on providing essential healthcare and other emergency services; hence there is no initiative taken by any country as of now

However, the biodegradable straws will increase the demand as soon as the COVID-19 pandemic is over.

Segment Analysis

The North America biodegradable straw market can be segmented on type, end-user and country.

Paper drinking straws are witnessing increased demand owing to restrictions on plastic drinking straws by the various countries

The North America biodegradable straw market is segmented based on type into the paper straw, hay straw, bamboo straw, pasta straw, polylactic acid straw and others. Paper straw holds the highest market share out of the mentioned types. The paper drinking straws are manufactured with the help of 3 ply paper bonded together with a small amount of water-based adhesive on the core-winding machine and hot melt adhesives using a slot nozzle machine for faster production.

Paper drinking straws are witnessing increased demand due to various countries' restrictions on plastic drinking straws. The paper straws demand increased drastically due to a surge in beverages like soft drinks cocktails consumption in hotels, restaurants, malls, cinema theaters etc.

Further growing demand for the paper straws for the sugary drinking beverages due to changing behavior towards more environmentally friendly products with rising population and urbanization demand has propelled the paper drinking straws market

Several leading players have launched paper-based drinking straws, creating massive demand due to moderate cost and environmentally friendly labels. For instance, on February 11 2019, Huhtamaki launched paper straws offering excellent quality and sustainability. Huhtamaki paper straws are made in facilities that meet the strictest safety requirements. In Europe, China, and U.S., they have been tested and certified for food safety.

Country Analysis

Rising government policies to hurdle the growth of plastic straw consumption has escalated the demand for the biodegradable straw market in the region

North America is the second-largest region for the biodegradable straws market. The sales of alternative plastic straws witnessed a major spike, with many cities implementing a ban on single-use plastic disposables.

Even if federal laws against banning plastic straws are not implemented, regional and city-based government bodies are increasingly implementing strict laws regarding the use of single plastic straws, strengthening the market of biodegradable straws in this region.

North America is a significant investor in the paper straw sector. Vancouver is the first major Canadian city to ban single-use plastic altogether. The federal government's push to ban plastic straws in some states has gained traction.

Furthermore, Plastic straws have been banned at restaurants and other service establishments in Washington, D.C., since January 2019. In July 2018, Seattle became the first city to ban plastic straws. The national push to eliminate single-use plastic is expected to turn due to such urban measures. Thus growing ban on plastic straws is expected to further escalate the market trend for biodegradable straws in the region in the forecast period.

Competitive Landscape

The North America biodegradable straw market is highly competitive with local companies. Some prime companies contributing to the market's growth are Hoffmaster Group, Inc, Huhtamaki, Pactiv Evergreen, Canada Brown Eco-Products, Bygreen, Charta Global, StoneStraw Limited, Stora Enso Oy, Aardvark Straws, Soton Daily Necessities Co., Ltd and others

The major companies adopt several growth strategies such as acquisitions, product launches, and collaborations, contributing to the North America biodegradable straw market.
On September 23, 2020, IW Capital London-based private equity firm, invested around US$ 11.70 million to facilitate the company’s mission to eliminate single-use plastics. The Company Transcend specializes in developing fully compostable, paper and fiber-based packaging, which helps control and eliminate single-use plastic straws and other related products.

Huhtamaki

Overview: Huhtamaki manufactures consumer packaging, food service containers, flexible & fibers packaging for food and beverages products. The company has 80 manufacturing units in 35 countries globally. The segment serves global markets from production units in Europe, the Middle East, North America, Asia, and South America.

Flexible packaging is used for a broader range of consumer products, including pet food, food, hygiene and health care products. The fiber Packaging segment consists of recycled fiber products like paper straws, cups, kraft paper boxes used for fresh product packaging, such as egg and fruit packaging. Foodservice packaging products consists of disposable tableware products, ice cream containers and other consumer goods packaging products

Product Portfolio: The company has a product portfolio of biodegradable straws that includes:
Paper Straws: Huhtamaki paper Biodegradable straws are made from virgin kraft paper with 100% PEFC certification. Paper sourced from certified sustainably managed forests. Safe and natural paper straws are a sustainable and responsible choice to serve drinks.
Food grade paper holding leading food safety certifications, including the FDA, has been tested and certified for food safety in the U.S.

Key Development
On February 11, 2019, Huhtamaki launched high-quality, sustainable paper straws designed with the help of fiber from sustainably managed forests.

Why Purchase the Report?
Visualize the North America biodegradable straw market segmentation by type, end-user and country, highlighting key commercial assets and players.
Identify commercial opportunities in the biodegradable market by analyzing trends and co-development deals.
Excel data sheet with thousands of North America biodegradable straw market-level 4/5 segmentation points.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the key product of all major market players

The North America biodegradable straw market report would provide approximately 45 market data tables, 37 figures and 102 pages.

Target Audience 2022
Service Providers/ Buyers
Food & Beverage Companies
Research Laboratory
Manufacturers
Healthcare
Consumer Goods Companies
Distributors