US Paper Foodservice Packaging & Serviceware

US Paper Foodservice Packaging & Serviceware

Demand for paper and paperboard single-use foodservice products is forecast to grow 3.3% annually to $16.0 billion in 2027. Demand in unit terms will grow as sustainability concerns increase, leading restaurants to move away from materials such as conventional plastic and foam and adopt paper and other biodegradable materials as a replacement. Additionally, demand in value terms will be supported by a shift toward higher value packaging, as more sustainable products that also feature a high performance level are higher priced than conventional paper packaging. Further gains will result from elevated levels of foodservice delivery and carryout/drive-thru revenues elevating paper disposables usage.

Paper-based disposables account for nearly half of the overall foodservice disposables market due to the ubiquity of napkins, paper cups, and paper bags at foodservice establishments. Paper’s natural high biodegradability levels and low cost has made it the preferred material to replace plastics in suitable applications in past years. However, paper faces a number of challenges in keeping its market share.

Paper Faces Competition from New Materials to Replace Plastic

Restaurants have felt increasing pressure to address concerns of excessive waste and lack of biodegradability in their disposable packaging. As sustainability concerns increase, other materials such as molded fiber and bioplastics are entering the market and competing with paper in acquiring demand share from plastic. In response, paper foodservice disposables suppliers are improving product aesthetics and performance, as well as increasing paper products’ environmental profile through replacing product coatings that hinder the eco-friendliness of their products.

Development of New Coatings to Increase Performance & Sustainability

An increased focus on biodegradability by end users has called into question the coatings used to improve paper performance in applications dealing with moisture and grease. Efforts from paper disposables suppliers to address this issue include the development of plant-based coatings as well as uncoated paper packaging that still offers high levels of grease resistance while maintaining high biodegradability levels.

Elevated Interest in Carryout & Drive-Thru Will Support Demand for Paper Disposables

Although a shift from dining on premises to takeout orders and delivery via digital apps had been occurring prior to 2020, the pandemic significantly accelerated this trend. This has had a varied impact on paper disposables, with products such as carryout bags and takeout containers benefiting the most. However, offering disposables such as napkins and straws upon request to limit waste creation is a growing practice that could restrain further expansion of paper disposables demand.

This Freedonia industry study analyzes the $13.6 billion US paper disposable packaging and serviceware market. 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) and market (limited-service restaurants, full-service restaurants, retail foodservice and non-commercial foodservice).