Cups and Lids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cups and Lids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The cups and lids market was valued at USD 28.62 billion in 2020, and it is expected to reach USD 36.23 billion by 2026, at a CAGR of 4% over the forecast period 2021 - 2026. The increasing demand for packaged food across the world and people preferring smaller portions of products while they are on the move, along with convenient packaging, have transformed the packaging industry at a global level, and it is expected to affect the market during the forecast period positively.

Key Highlights

• In recent years, there was a surge in demand for cups and lids in the packaging industry, primarily driven by the increasing demand from specialty beverages, such as coffee and milkshake.
• The properties of cups and lids products, such as lightweight, smooth rolled rims for a comfortable and safe surface, snap-fit, easy removal, leak-resistance applications, and cost-effectiveness, are also the significant forces contributing toward the market growth.
• Paper cups gained wide acceptance due to their significant properties, such as easy-to-use, hygienic, safe, and functional. They meet the needs of modern life cost-effectively. According to Ecoffee Cup, more than half-trillion of disposable cups are manufactured annually around the world. According to Paper Cup Alliance, 2.5 billion cups are sold in the high streets of the United Kingdom every year. According to the estimates from the paper and recycling sector, 50 billion cups are used annually in the United States.
• Moreover, the increasing penetration of coffee chains, such as Starbucks, Costa Coffee, and Tim Hortons, across the world, is the most significant growth driver for the market studied. According to the studies done by Good News Network, each year, Starbuck uses 250 billion to-go cups that serve coffee and tea.
• However, with the outbreak of COVID-19, the cups and lids market is expected to be hit severely in the short-run as production has come to an abrupt end, and the entire packaging supply chain is disrupted because of the global shutdown. But, in the long-run, with businesses normalizing and food-service industry on the rise, the market is expected to rebound back.

Key Market TrendsFood Service Segment to Witness Significant Growth

• The past decade has witnessed a significant change within the foodservice industry as the consumers have shifted toward higher-quality food and convenience.
• Ongoing significant concerns, such as environmental and climate change issues, are becoming a major selling point for customers. Some major outlets across the world are choosing to create a zero-waste kitchen by avoiding disposables products and using innovative products that are recyclable, to use all parts of their food.
• The foodservice industry is one of the prominent end-user industries that hold a significant share in the cups and lids market. The growth of online food delivery services augmented the demand for food cups and portion cups. According to the US Census Bureau, the total foodservice sales in the United States amounted to USD 6.02 million.
• Home Food delivery applications are also booming, and it is changing the entire landscape of brick-and-mortar stores and restaurants. The growing population of students and working-class people, who don’t have enough time on their hand for a home-cooked meal, are the primary users of these services. This major factor is likely to drive the demand of the market.

North America is Expected to Hold the Largest Market Share

• The North American region is witnessing food trends from the consumers that favor convenience and smaller packages for single servings and the growing focus on specialty beverages, which are driving the market growth in this region.
• Moreover, some additional factors fueling the market growth in this region includes the rapidly changing lifestyles of people, change in the food consumption habits, and the growing demand for a single serving, convenient packaging solution.
• The rapid expansion of the foodservice industry in this region is also expected to drive the demand for these products over the forecast period. According to the International Franchise Association, the number of quick-service restaurants franchise establishments in the United States reached 194,723 in 2018 as compared to 190,649 in 2017.
• Moreover, the region is home to one of the quick-service giant McDonald's, and the majority of its outlets are based in the United States. According to McDonald's, the number of McDonald's restaurants in the United States in 2018 was 13,905 and 1,472 in Canada.

Competitive Landscape

The cups and lids market is highly competitive due to the presence of many large and small players in the market, supplying their products in the domestic and international markets. The market appears to be fragmented in nature. Major players in the market are adopting strategies like product innovation and mergers and acquisitions to increase their market offerings and stay competitive in the market landscape. Some of the major players in the market are Reynolds Consumer Products, Huhtamäki Oyj, Greiner Holding AG, and Solo Cup Operating Corporation, among others.

• January 2020 - Huhtamaki acquired the assets and operations of Mohan Mutha Polytech Private Limited (MMPPL) in India. The acquisition is expected to speed up its growth in India by improving its capability to serve the customers in South India.
• Jul 2019 - Huhtamaki launched its new compostable Bioware impresso double-walled hot cup. This new cup in a mixed sleeve of white and green designs utilizes the unique Impresso bubble emboss, which provides better insulation and a tactile touch for the holder.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Georgia
Pacific LLC
Clondalkin Group Holdings
Greiner Holding AG
Huhtamaki Oyj
Printpack Inc.
Solo Cup Operating Corporation
WinCup Inc.
Graphic Packaging International LLC
Mondi Group
Airlite Plastics Company
Reynolds Consumer Products
Michael Procos SA
BioPak UK
Paper Cup Company
Greiner AG
ECO Products Europe
Brendos Ltd
Berry Global
Dart Container

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