US Coffee & Snack Shops Disposable Packaging & Serviceware

US Coffee & Snack Shops Disposable Packaging & Serviceware

Demand for single-use products in the coffee and snack shop market is forecast to grow 4.3% annually to $3.0 billion in 2027, with growth coming from both increasing demand in units as well as higher prices:

• Individual product prices will grow at a slower rate compared to the inflation-driven increases in 2021 and 2022; however, pricing will still increase going forward due to a shift in product mix toward more expensive products that are more sustainable or higher performing.
• Real growth will be supported by healthy underlying gains in the coffee and snack shop industry and expanding menu offerings. However, this will be offset by sustainability-driven efforts to reduce or eliminate excess packaging and serviceware use.

Coffee & Snack Shops Moving Toward More Sustainable Options

With more pressure from consumers and investors on leading companies to engage in sustainable practices, coffee and snack shops are making significant changes in the types and quantity of disposables that are used. End users are looking for ways to reduce or eliminate their use of plastic products such as straws, stirrers, and cups. For example, Dunkin’ has transitioned from foam cups to paper cups globally, and Starbucks recently met its target to have at least 20% recycled content in its hot cups by 2022. Starbucks has also been a leader in the move away from straws with the development of strawless lids.

Reducing Demand for Conventional Plastics Fuels Demand for Alternatives

Due to concerns over their environmental impact, plastic products have been a key focus of changes in coffee and snack shop disposables use. Although paper is benefiting from the shift toward more sustainable packaging and taking share from plastic, other materials such as molded fiber and bioplastics are benefiting as well due to their high biodegradability levels. While this will support overall revenue increases due to sustainable packaging being more expensive, the focus is also on reducing the number of disposables in use, which will limit growth in unit terms.

Starbucks Planning a Shift Toward Reusable Cups but Obstacles Could Slow Transition

Starbucks has long encouraged customers to use their own reusable cups by including small discounts on purchases. To further address growing sustainability concerns, the industry giant has announced plans to completely phase out single-use cups, aiming to serve all customers in the future with a mix of customers bringing their own cups/mugs combined with a deposit-based to-go option. While these efforts will limit growth in disposable cup demand to some degree over the next decade, it is unlikely that the company will be successful in eliminating the use of disposables due to customer backlash and logistical issues.

This Freedonia industry study analyzes the $2.4 billion US coffee and snack shops disposable packaging and serviceware. It presents historical demand data (2012, 2017 and 2022) and forecasts (2027) by product (beverage packaging, serviceware, food cups, boxes and folding cartons, clamshells and two-piece containers, packaging bags and wraps, carryout bags, trays, and other food packaging), material (paper and paperboard, plastic, molded fiber, aluminum, and other materials), and market (coffee shops, donut shops, ice cream and frozen yogurt shops, and other beverage and snack shops). The study also evaluates company market share and competitive analysis on industry competitors including Dart Container, Pactiv Evergreen, Graphic Packaging, Georgia-Pacific and Novolex.