US Disposable Straws

US Disposable Straws

The US market for disposable straws continues to face unprecedented disruption, with the lingering impact of the COVID-19 pandemic, sustainability initiatives, and bans on single-use plastics all combining to escalate changes in volume usage, pricing, and the types of materials used in produce straws. Foodservice is by far the largest market for straws and will continue to have an outsized impact on overall straw industry trends.

Demand for disposable straws is forecast to grow 1.5% annually to $597 million in 2027. However, this growth rate hides two opposing underlying trends:

•      Growth in average prices will be supported by a transition from conventional plastics to higher value materials such as paper and bioplastics and this will support growth in market value.
•      Demand in unit terms will decline as sustainability-driven efforts and bans aim to reduce or eliminate straw use.

Sustainability Becomes the Major Factor in Straw Choices

Historically, straw end users have generally valued performance and cost over sustainability in purchasing decisions. However, growing public awareness of the negative impacts of small plastic items like straws and expansion of single-use plastics bans have made plastic straws a target of sustainability initiatives, especially among foodservice leaders whose products are in the spotlight. This has resulted in:

•      a strong push toward using biodegradable alternatives – such as paper, molded fiber, and bioplastics – instead of polypropylene
•      efforts to reduce usage by only providing straws upon request or eliminating straws altogether by using alternatives such as strawless lids

New Materials Compete for Market Share as Conventional Plastic is Phased Out

As more consumers recognize the negative environmental effects of conventional plastic straws, they will continue to be replaced by new alternatives that have entered the market. However, there has yet to be a clear leader in the race to replace conventional plastic.
Initially, paper and polylactic acid (PLA) bioplastic straws were the most available products. However, paper’s performance issues inhibited early adoption while PLA received criticism for its lack of biodegradability. As a result, newer materials such as molded fiber and polyhydroxyalkanoate (PHA) bioplastic have recently entered the market, aiming to provide both good performance and strong environmental profiles.

US Straw Production Ramps Up as Alternative Materials Flourish

Historically, straws have largely been manufactured in Asia (mostly in China) and imported to the US. While straws can be expensive to ship long distances, China’s large low cost plastics industry allowed the country to be a dominant player in the US market despite shipping costs. However, plastic straw bans in China combined with temporary US tariffs led to an increase in domestic production, especially for paper and bioplastic straws.

Study Description