Latin America Foodservice Disposables

Latin America Foodservice Disposables

Demand for single-use foodservice products (foodservice disposables) in Latin America is forecast to increase 4.2% per year to 96 billion units in 2027. Growth will be driven by the overall development of the region’s foodservice sector, increasing personal incomes, expansion of the limited service market, and an increase in carryout and delivery orders. These drivers will be offset by sustainability initiatives and growing restrictions on single-use plastic products that are reducing the use of items such as straws, napkins, and lids.

Sustainability Efforts Battle Cost & Cultural Challenges

Consumer and government awareness of environmental issues is growing in Latin America, leading to increasing restrictions on single-use products, especially those made from plastic. This is especially the case in tourist areas, where natural beauty and pristine beaches are keys to attracting visitors and where tourism income is key to local economies.

However, cost remains the leading decider in the purchase of foodservice disposables in Latin America. Though on the rise, the region’s average personal incomes remain low, and a low cost street food sector is prominent. While an influx of large international restaurant chains is boosting the use of more sustainable products and materials, many local establishments are still resistant to moving away from products like plastic bags and foam clamshells.

Limited Service & Carryout/Delivery Orders Boost Growth in Most Countries

The COVID pandemic sharply expanded the number of carryout and delivery orders in most countries, a trend that seems to be durable, aided by expansion on online ordering apps. This expanded disposables use in all sectors, including full-service restaurants that traditionally used few disposable goods. Limited service options such as fast food, fast casual, coffee and snack shops, and convenience stores continue to take a greater share of the foodservice market in Latin America. This is a key driver of disposables demand in the region as these operations tend to use more and a greater variety of disposables than full-service operations.

Food Packaging Drives Gains while Beverage Disposables & Serviceware Trail Average

Food packaging demand will post the fastest gains due to growth in the limited service market. However, the market for beverage disposables will remain underdeveloped due to continued issues with water quality in the region and a reliance on prepackaged beverages. Efforts to reduce plastic straw use will further limit beverage disposables advances. Growth in the use of serviceware will be restricted by the dominance of napkins, which are seeing below average advances due to market maturity.

Study description

This Freedonia industry study analyzes the $2.4 billion single-use foodservice products (foodservice disposables) industry in Latin America. It presents historical demand data (2012, 2017, 2022) and forecasts (2027, 2032) by product (beverage disposables, food packaging, serviceware), material (plastic, paper and paperboard, other materials), market (fast food and casual, full-service restaurants, other limited service) and subregion (Mexico, Central America and Caribbean, Brazil, Other South America).