North America Drinking Straw Market - 2022-2029

North America Drinking Straw Market - 2022-2029

Market Overview

The North America drinking straw market valued USD 3,208.44 million in 2022 and it is expected to grow at a CAGR of 5.26% to reach USD 5,099.80 million by 2029.

A drinking straw is a cylindrical hollow tube used to consume a beverage. It can be made up of plastics, paper and many others. Drinking straws are widely used in hotels, cafes, quick service & food chain restaurants, lounges, roadside eateries, residential houses and apartments. Recently compostable and biodegradable drinking straws have been used due to stringent government rules and regulations globally on plastic straws. Hence several leading manufacturers are launching paper-based and recyclable straws to avoid pollution through the plastic.

The market growth is driven by the booming food and beverage industry in North America with the changing consumer preferences and tastes, which has led to the customization of food and beverage. The market is witnessing an increase in the number of international and local restaurants, hotels and café chains, increasing the demand for drinking straws.

Market Dynamics

The rising number of international restaurants and cafe chains is boosting the market trend for drinking straws in the region.

The rising number of international restaurants and cafe chains is boosting the market trend for drinking straws in the region

Most restaurant in North America has their customers drinking straws with them. The transparent, straight straws are mostly preferred in food service restaurants, cafe chains, juice centers etc. All typical sizes of beverage straws use different sizes of drinking straws, with 7.75 inches wide with wrapped or unwrapped is the most common one. The drinking straws with good quality are built to match all typical sizes of beverages.

Different forms of straw may be used in bars, ice cream parlors, concession stands and fast-food restaurants. Sales of straws in pubs, lounges and hotels will benefit greatly, although remarkable development can be seen in the immediate future in restaurants and motels. On the other hand, Cafes have reported average annual growth in straw sales in the recent past.

Growth in demand in the institutional sector, especially in corporate environments, also appears optimistic. Further, manufacturers can target white spaces for greater returns in the education and healthcare sectors.

Delivery and take-out facilities in restaurants are gradually growing in demand and are key to sustaining profits in the current climate. Restaurant bans related to the coronavirus pandemic in certain states restrict dine-in options. It will continue to improve its revenue and manage this recession by diversifying its offerings to provide pick-up, distribution, curbside pick-ups and home delivery options.

Stringent regulation regarding the usage of plastic drinking straws hurdles the market growth for the product

Growing negative sentiment on the use of plastic products in North America has greatly affected the demand for plastic drinking straws. For instance, San Francisco, U.S., implemented a plastic bag ban that resulted in a 72% decrease in plastic litter on local beaches from 2010 to 2017.

Activities against single-use plastic started in 2015, particularly against plastic straws, after some videos regarding the adverse effect of plastic garbage were shown in the videos. Because of this, U.S. cities such as Seattle, WA and Berkley, etc., have announced eliminating plastic straw use by implementing various bans in their cities.

The plastic drinking straw category is projected to experience negative demand development over the forecast period due to the plastic straw ban. Now many corporations, towns and states make disposable straws illegal.

Several regional restaurants and cafe franchises have confirmed that they have agreed to withdraw plastic straws from their stores and substitute them with more sustainable paper straws. For instance, Starbucks and McDonald's have removed all their stores from using plastic straws. Starbucks anticipates phasing out plastic straws by 2020.

Additionally, in North America, there have been many local and national campaigns and events for consumers and businesses to willingly decrease straws comprising National Skip the Straw Day, Straw Wars, Straws Suck, the Last Plastic Straw, One Less Straw and No Straw Please. All these factors hinder the market growth of drinking straws, mainly plastic straws.

COVID-19 Impact Analysis

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

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

During the COVID-19 pandemic, the North American government has not taken any initiative to support the drinking straws sector. There are several reasons, including drinking straws are not utility products; they are more convenient. The government focused on providing essential healthcare and other emergency services; hence, no initiative has been taken by any country.

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

Segment Analysis

The North America drinking straw market can be segmented on material, shape, end-user and country.

High demand for plastic drinking straws from various restaurants and cafes has escalated the segment’s market trend in the region

The North America drinking straw market is segmented based on material into plastic, paper, metal, bamboo and others (silicone, glass wheat). Plastic drinking straw holds the highest market share out of the mentioned material. The plastic drinking straws are made from polypropylene resin and polystyrene mixed with plasticizers, colorants, antioxidants, stabilizers and fillers. These materials are available in powder form, passed through the hopper and extruded by long heating using motor-driven grinder technology.

Thus, the extruder squeezes the molten mixer as per the required size. The holes are set as per the required size, shape and diameter

The usage of plastic drinking straws is increasing faster with rising consumer spending and increasing people's expenditure on hotels, restaurants, cinema theaters, etc. According to the Blue-Growth Organization, in U.S., the estimated straw usage is around 500 million straws daily, with an average of 1.6 straws per capita per day. The growth is primarily due to increased consumption of beverages and drinks across hotels, restaurants, cinema theaters, malls etc.

However, an outbreak of COVID-19 has negatively impacted North America drinking straw market. Furthermore, increasing government policies toward reducing plastic consumption have severely challenged North America's plastic drinking straw market.

For instance, on Sept 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 to control and eliminate single-use plastic straws and other related products.

Country Analysis

The demand for straws in North America increased due to the growing consumption of the beverages cold and soft drinks among the people and rising consumer spending in the region

The demand for straws in North America increased due to the growing consumption of beverages, cold and soft drinks and rising consumer spending. According to the National Park Services Government Organization in North America, an estimated consumption of disposable package drinks is used at an average rate of 1.6 straws per person per day.

Based on national averages, this equates to each person in U.S. using around 38,000 straws per day between 5 and 65. In North America, children consume, on average, over 30 gallons of sugary drinks every year which propels the drinking straws market

Further rising usage of straws at the household level with the surge in sugar-sweetened beverages consumption by U.S. people have propelled the demand for the drinking straws market in this region. North America has the highest number of sugar-sweetened beverages, with around 61% from the West, 67% from the South, 59% in the Midwest and the highest 68% from the Northeast of North America reporting sugar-sweetened beverages one or more times per day consumption.

North America living population drinks, on average, 52% of SSB calories at home and 48% of SSB calories away from home. The mentioned factors have propelled the demand for the drinking straws required in the sugary sweetened beverages in this region.

Competitive Landscape

The North America drinking straw market is highly competitive with local companies. Some prime companies contributing to the market's growth are Hoffmaster Group, Inc, Huhtamaki, Pactiv Evergreen, Southeastern Liquid Analyzers, Inc, StoneStraw Limited, Absolute Custom Extrusions Inc, Stora Enso Oy, FinalStraw, klean canteen, Aardvark Straws and others

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to North America's drinking straw market growth.
• In April 2021, D&W Fine Pack partnered with Eastman to introduce New Earth Smart commercially compostable drinking straws. Earth Smart straws are the first product to be made with Aventa Renew by Eastman. The newly developed material is certified commercially compostable by the Biodegradable Products Institute (BPI).
• In February 2021, H.B. Fuller launched a new generation of high-performance adhesives with Swift tak 5730 grade to create consumer-safe, liquid-resistant paper straws designed for fast-moving machines and improved sustainability.

Huhtamaki

Overview: Huhtamaki manufactures consumer packaging, food service containers and flexible & fiber packaging for food and beverage 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, hygiene and health care products. The fiber Packaging segment consists of recycled fiber products like paper straws, cups and kraft paper boxes used for fresh product packaging, such as egg and fruit packaging. Foodservice packaging products consist of disposable tableware products, ice cream containers and other consumer goods packaging products

Product Portfolio The company has a product portfolio of drinking straws that includes:
• Paper Straws: Huhtamaki paper drinking 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 for serving drinks.
• Food-grade paper holding leading food safety certifications, including the FDA, has been tested and certified for food safety in Europe, China and U.S. The paper substrate is certified for direct food contact by ISEGA in German.

Key Development
• In May 2019, Huhtamaki established a paper straw manufacturing facility in Northern Ireland. The manufacturing facility is in Antrim, Northern Ireland, near Belfast. The company's paper-based product line, such as paper straws, will be expanded due to this development.

Why Purchase the Report?
• Visualize the North America drinking straw market segmentation by material, shape, end-user and country, highlighting key commercial assets and players.
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• Excel data sheet with thousands of North America drinking 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 drinking straw market report would provide approximately 51 market data tables, 42 figures and 208 pages.

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