Paper Cups Market - Forecasts from 2023 to 2028

Paper Cups Market - Forecasts from 2023 to 2028

The paper cups market is projected to grow at a CAGR of 4.06% to reach US$10.96 billion by 2028. Paper cups are a type of disposable cups made from paper and find extensive utility for serving food and beverages worldwide. The evolving lifestyle of people and the adoption of a busy lifestyle is driving the market demand for single-use cups; hence this saves time. The growing consumption of tea and coffee is further augmenting the market demand.

Also, in commercial areas, one can find immense use of paper cups in tea stalls. Commercially, paper cups are usually wax-coated to prevent them from leakage or prevention from turning soggy. Hence, the waxy layer makes these cups durable and liquid resistant. The growing consumption of fast food is further augmenting the market demand as beverages in the form of accompaniment do play an important role, and paper cups are handy for carrying beverages easily.

Also, the growing awareness of sharing the same cups and containers is leading to the transfer of germs or diseases, further propelling the market demand and encouraging people to adopt paper cups, significantly impacting the market growth in the forecast period. Furthermore, the growing trend of using eco-friendly products is driving market demand in the forecast period. This is because these cups have higher biodegradability in comparison to plastic or disposable polystyrene cups. The increasing food service industry is further propelling market growth in the forecast period. The growing paper industry is driving market growth in the forecast period.

Geographically, the North American region is estimated to hold a significant market share due to the high prevalence of the adoption of a busy lifestyle along with the habit of eating outside. In contrast, the Asia Pacific region is projected to witness high growth prospects during the forecast period. Rapidly developing corporate culture, along with the growing trend of consuming food and beverages outside the home environment, has significantly impacted the market growth in this region, creating a high opportunity for revenue generation during the forecast period.

The prevalence of tea consumption is propelling market growth in the forecast period.

According to the Food and Agriculture Organization (FAO), it takes around 2 grams to prepare one cup of tea, while 10 grams to prepare one cup of coffee. As per British Geographer David Grigg, at the international level, three cups of tea are consumed for every cup of coffee. Tea is widely consumed worldwide in comparison to coffee, even though it is observed that green coffee is produced more than tea at the global level. Hence, tea consumption is projected to impede market growth in the forecast period with the prevailing consumer preference for consuming tea over coffee.

Tea is known to originate from China and has gained popularity in the last 2000 years. It is still an essential beverage in Chinese society. At present more than 1000 varieties of tea are available in the market, and more than 25 countries in the world are involved in tea cultivation.

According to the Tea Association of the U.S.A. Inc., tea is the most widely consumed beverage globally after water. Around 80% of households in the United States of America consume tea. On any given day, more than 159 million Americans drink tea.

In 2019, it was noticed that more than 3.8 billion gallons of tea were consumed by Americans. Black tea accounted to hold a share of 84%, green tea accounted for 15%, and the remaining 1% share was distributed among oolong, white, and dark tea consumption. The United States continued to be the third-largest tea importer globally, followed by Russia and Pakistan. It is the only Western country to grow in tea import and consumption.

The growing popularity of coffee among the younger generation significantly boosts the market demand in the forecast period.

Coffee drinking is gaining popularity at a significantly fast pace among millennials. This increasing trend of coffee consumption among the younger generation is projected to surge the market demand with the rise in disposable income of the developing regions of the world and the high disposable income of the citizens of the developed regions of the world. This has further boosted the growth of the coffee industry as well due to the evolving coffee-drinking customers, bringing on innovations in coffee products resulting in a variety of coffee drinks ranging from iced beverages to coffee shakes and classic coffee options.

The increasing family income and middle-class population in the emerging economies of the world, providing a huge customer base, are further augmenting the market demand. Due to the increasing number of coffee drinkers, companies nowadays are focusing on the interests of the millennial population worldwide.

Furthermore, with the growing adoption of busy lifestyles among the millennials, these younger generations are interested in consuming convenience food and beverages such as ready-to-drink coffee, including pre-made coffee, that is easy to carry along. Also, with the growing trend, it is easier to find coffee machines in gas stations, in addition to ready-to-drink coffee product variants in convenience stores for customers on the move.

The use of biodegradable paper cups is contributing to a surge in market demand during the forecast period with the growing trend of the adoption of eco-friendly commodities.

The utilization of biodegradable paper cups that are 100% biodegradable is fueling the market demand in the forecast period as it is considered an exceptional packaging alternative with no harmful impact on the environment and thus contributes to lowering the carbon footprint. The utilization of these cups is attributed to their safety, and hence it has been observed that several coffee shops worldwide have started using them on a wide scale. Manufacturers utilize wood pulp, plant material, or bamboo to manufacture biodegradable paper cups. Also, most of the paper is derived from recycled paper waste and materials that are completely environmentally friendly.

Market Developments:

November 2021: Stora Enso's latest invention, UltraThinPE TecTM, drastically lowers the proportion of plastic layer in the Food Service Board (FSB) and products like single-use paper cups. Stora Enso has manufactured the thinnest polymer coating for FSB products on the market with the assistance of UltraThinPE TecTM. This accomplishment enables the creation of paper cup designs containing less than 5% plastic.
August 2021: Chobani announced the launch of a new paper cup packaging for its yogurt products. The paper cup from Chobani is comprised of renewable, ethically sourced materials, including 80% paperboard. To preserve the integrity of the goods, the cup features a thin plastic liner.
December 2020: Brandbase announced the launch of a new paper cup named the Jungle Cup®. The new Jungle Cup® achieves the Flustix certified plastic-free accreditation by replacing the inner plastic lining with a thin water-based membrane material. The lids are made of bagasse, an organic substance that may be composted at home and is a fibrous byproduct of crushing sugarcane or sorghum stalks to release their juice.

Impact of COVID-19 on the Paper Cups Market

With the continuous spread of the novel coronavirus infections across the world, the global paper cups industry has been negatively impacted as there have been changes in people’s way of going to work, drinking coffee or tea, and buying other items. The increasing emphasis on work-from-home, home quarantine initiatives, and reduced public gatherings to prevent the transmission of COVID-19 infection has resulted in a decline in market growth in 2020. However, with the increasing trend for food delivery and takeaways, the market demand is expected to increase. Additionally, with most countries starting to lift their COVID-19 protocols, the market demand for fast food and eateries is anticipated to increase multifold, which would positively influence the paper cup market.

Market Segmentation:

By Design

Printed Paper Cups
Non-Printed Paper Cups

By Application

Hot Beverages
Cold Beverages
Ice Creams
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Italy
Others
Middle East and Africa
UAE
Israel
Saudi Arabia
Others
Asia Pacific
Japan
China
India
South Korea
Taiwan
Thailand
Indonesia
Malaysia
Singapore
Cambodia
Brunei
Laos
Myanmar
Philippines
Vietnam
Others