US Cups & Lids

US Cups & Lids

Demand for disposable cups and lids in the US is forecast to grow 3.4% per year to $15.5 billion in 2027. In volume terms, demand will increase 1.8% annually to 479 billion units. Unit growth will be supported by healthy gains in foodservice revenues and the increasing popularity of single-serve, convenient food packaging. In addition to real demand gains, market value will be supported by the proliferation of higher value, sustainable cup materials such as molded fiber and aluminum.

Sustainability Has Growing Impacts on Material Mix & Product Development

Over the past decade, sustainability has become a leading factor in determining cup and lid choices. This has resulted in a strong push toward using higher priced materials such as aluminum and bioplastics, which supports market value increases. This also extends to products such as rigid plastic cups, with an emphasis placed on more environmentally friendly plastics or the greater incorporation of recycled content, which also boosts prices.

Concerns over sustainability are also creating a shift in the product mix. For instance, a general phaseout of foam cups, especially among major foodservice chains, is supporting demand for a variety of alternative materials such as paper. However, growing efforts to encourage reusable cup usage, especially among coffee shops and other limited-service restaurants, will offer a potential restraint on cup demand.

Continued Growth in Foodservice to Further Propel Cup Demand

Foodservice will continue to be an important market for disposable cups and lids due to their widespread use with hot and cold beverages, various food items, and condiments. Foodservice cup and lid demand will be supported by continued growth in foodservice orders and a return to normal consumer dining out habits. The increasing number of takeout and delivery orders at full-service restaurants, which almost exclusively used reusable glassware until recently, will also bolster gains. However, a shift at some limited-service restaurants toward bottled beverage options instead of those offered in cups will restrain greater gains.

Convenience Will Support Packaging Cup Demand Despite Maturity in Key Food Segments

Demand for packaging cups and lids will primarily benefit from the convenience they offer across various food packaging applications. In addition to widespread trends toward individual-sized food products, cups allow for on-the-go snacking as well as use with multi-pack products. However, a slowdown in key food segments, most notably flattening yogurt consumption after periods of exceptional growth, will restrain further demand going forward.

Study Description

This study examines the US market for disposable cups and lids. Historical data are provided for 2012, 2017, and 2022, with forecasts through 2032. Annual data is provided for 2018-2026. Data are provided in current dollar value and units. The study also evaluates company market share and competitive analysis on key industry competitors including Dart Container, International Paper, Graphic Packaging, Pactiv Evergreen, and Berry Global.