Paper Straw Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Paper Straw Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The market for paper straws is anticipated to register a CAGR of 14.39% during the forecast period. The increasing demand for paper straw papers across various end-user industries is anticipated to fuel market expansion.

• The growing demand for environment-friendly products is the key factor driving the market's growth. There are various government initiatives to reduce plastic use and stringent laws that restrict using conventional plastic materials in the production of utensils. Typically, paper materials are adaptable, changeable, light, strong, and recyclable. They can be made in a wide range of colors, forms, and sizes to satisfy the client's needs. The rapidly growing global food and beverage industry is acting as another growth-inducing factor.
• However, the high cost associated with paper straws and the availability of the low price substitute can hinder the market's growth. According to PacknWood, paper straws cost about USD 0.025, which is significantly higher than USD 0.005 for plastic straws.
• The COVID-19 pandemic has had a complex effect on the paper straw industry. The supply and demand of paper straws in the market were affected by the closure of food service establishments and restaurants and a disruption in supply chain management. However, the rising trend in online food ordering and the growing demand for paper straws in hospitals for the intake of liquid medications are driving paper straw sales.

• Consumers have become more aware of the adverse impact of plastic straws on the oceans and other water bodies. Plastic straws are an accessible and inexpensive option; however, the negative effect on the planet is significant, as they are non-decomposable. Moreover, plastic straws take years to disintegrate. Thus, the demand for paper straws is increasing continuously.
• The global consumption of plastic straws has skyrocketed in the last few years. However, the also-growing increased intolerance to plastic straws has increased consumer demand for biodegradable straws, and increased government reforms and regulations banning plastic straws provide a positive outlook for the growth of the market.
• The increasing demand for eco-friendly products and the growing public awareness are anticipated to augment the growth of the market during the forecast period. Consumer trends toward environmentally-friendly products are one of the critical drivers of the paper straw market.
• Attractive-looking single-use consumables have always been the focus of consumers. Thus, paper straw makers offer printed paper straws with catchy designs to increase consumer attention in the market. Paper straws made of three or four layers of paper and many additives around the mold are relatively more durable than the traditional paper straws. As a result, paper straws can meet the market demand for stable and sustainable alternatives to plastic straws and gain significant traction during the forecast period.

• The growing hospitality industry in the Asia-Pacific region is expected to fuel the growth of the market studied during the forecast period. The hospitality industry is a significant end-user of paper straws, and the growing number of grocery stores has significantly boosted the demand for paper straws.
• In the food and beverage sector, consumer behavior has changed substantially. In addition, growing online grocery delivery platforms in emerging markets such as India offer a return on investment of over 40%. This fierce fuels competition for food delivery platforms among food service companies that provide favorable growth opportunities for disposable foods such as paper straws.
• For instance, manufacturers of small packaged fruit juices and dairy products such as Parle Agro, Dabur, and Mother Dairy are resorting to imported paper straws despite higher costs to continue selling their products as the deadline for implementing the ban on plastic straws recently draws closer. The manufacturers, however, want the government to extend the implementation date of the ban till proper infrastructure for producing paper straws locally is developed, saying importing such straws is not economical.
• There is much potential for multinational food and beverage firms to build or extend activity in Asia-Pacific markets. The Asia-Pacific functional beverage market is witnessing strong growth due to the availability of various innovative varieties of drinks and growing demand from the millennial population. The busy lifestyle of the growing urban middle-class people in the region and the lack of energy and nutrients in an individual’s diet drive the demand for functional beverages. These are some key driving factors that create growth opportunities for the market.

The global paper straw market is fragmented, with firms vying for customers by offering competitive prices and cutting-edge products. Hoffmaster Group Inc., Transcend Packaging Ltd, and Huhtamaki OYJ are a few of the market's biggest companies. Due to R&D investments, new market efforts, global presence, production sites and facilities, production capabilities, and product launches, the market is competitive.

• July 2022: SIG India launched recyclable paper straws. SIG, a leading system and solution provider for aseptic carton packaging, launched a wide range of recyclable paper straws with various dimensions, shapes, and applications. As a potential solution to the massive environmental damage caused by plastic straws, and in line with the plastic ban in India, SIG’s paper straws offer the best biodegradable non-plastic alternative.
• September 2021: Nestle introduced sustainable paper straws for Milo, the chocolate beverage. This initiative, in partnership with the Indian Premier League (IPL) team Royal Challengers Bangalore (RCB), came ahead of the tournament’s resumption. Milo's beverage packs with paper straws are available across India. Nestlé aimed to eliminate 30 million plastic straws with this initiative. The company stated that it would also transition to paper straws in its Nescafé range of cold coffees.

• The market estimate (ME) sheet in Excel format
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