US Fast Food & Fast Casual (QSR) Single-Use Packaging & Serviceware

US Fast Food & Fast Casual (QSR) Disposable Packaging & Serviceware

The US market for single-use foodservice packaging and serviceware continues to face unprecedented disruption, with the lingering impact of the COVID-19 pandemic, sustainability initiatives, and longer running market trends all combining to escalate changes in market size, product formats, and materials. Quick service restaurants (QSR), which include fast food and fast casual establishments, are the largest market for single-use products and have an outsized impact on overall foodservice industry trends.

Demand for foodservice single-use products in quick service restaurants is forecast to grow 3.2% annually to $19.1 billion in 2027. However, this growth rate hides several opposing underlying trends:

•      Growth in individual product prices will moderate – or even decline – from inflation-driven highs in 2021 and 2022, but this will be offset by a shift in the product mix toward higher value materials and packaging formats.
•      Demand will be supported by the increasing popularity of fast casual dining, coupled with the fact that these establishments generally offer single-use products that are higher value than fast food restaurants.
•      Growth in units will be restrained by the maturity of the fast food segment, as well as by sustainability-driven efforts to reduce or eliminate excess packaging and serviceware use.

New Materials Compete for Market Share, but with Limited Success

Quick service restaurants and their suppliers continue to search for the ideal packaging material, one that provides both sustainability and performance at a low price. While conventional plastics continue to maintain strong market share due to their low cost and performance benefits (and a growing focus on recycled content), new materials such as molded sugarcane and PHA bioplastics are emerging as potential alternatives. However, the fast food market has largely embraced paper as its primary alternative for plastics and is hesitant to incorporate new materials. Meanwhile, fast casual restaurants are better positioned to adopt these new materials if they can offer adequate performance, sustainability, and competitive pricing.

Fast Growth in Fast Casual Restaurants Affects Overall Disposables Usage

Fast casual restaurants have historically accounted for a small share of the overall QSR market, which has long been dominated by fast food. However, recent shifts in consumer preferences have led to strong growth in fast casual revenues. These establishments seek to differentiate themselves from traditional fast food by providing unique menu items and atmosphere, as well as fast service. As part of this differentiation, fast casual restaurants utilize types of disposables and materials not as common in fast food. For example:

•      greater incorporation of higher value materials, such as molded fiber
•      more versatile packaging options, such as two-piece containers that better cater to the increasing popularity of food in bowls
•      use of high-performing packaging that feels and looks more appealing than traditional fast food packaging

Additionally, fast casual restaurants increasingly provide takeout and delivery, further boosting growth in disposables.

Study Description