Paper Cups Market Size, Market & Industry Analysis, By Type (Hot Paper Cups and Cold Paper Cups), By Wall Type (Single Wall Paper Cups and Multiple Wall Paper Cups), By End User (Household, Quick Service Restaurants (QSR), and Others), and Regional Forecast, 2025-2032

The global paper cups market size was estimated at USD 11.00 billion in 2024. The market is projected to grow from USD 11.52 billion in 2025 to USD 16.28 billion by 2032, exhibiting a CAGR of 4.42% over the forecast period.    

Paper cups are disposable cups made from paper, usually with a thin lining or coating of plastic or wax, preventing liquid from leaking out or soaking into the paper. Expansion of prominent foodservice brands globally, such as McDonald's and Starbucks, that extensively use the product to serve beverages, boosts global market expansion. Rising single-use plastic ban initiatives throughout countries are also expected to trigger the product demand in the forthcoming years. Key players operating in the market include Huhtamäki Oyj, WestRock, Graphic Packaging International, LLC, SCG Packaging Public Company Limited, and Dart Container Corporation.

MARKET DYNAMICS

Market Drivers

Growing Coffee and Tea Consumption to Drive Product Demand

Growing coffee and tea consumption among individuals globally to improve energy and stamina drives the global paper cups market growth. For instance, according to surveyed data published by the National Coffee Association (NCA), in 2023, around 65% of Americans drink coffee every day, compared to 62% in 2020. Furthermore, a high amount of tea is consumed by numerous individuals globally as it is rich in antioxidants, enhances focus, and reduces stress. For instance, as per the German Tea Association (Deutscher Teeverband e.V.), in 2024, individuals in Germany consumed approximately 67.2 litres of tea per person, including black & green teas (27.1 litres) and herbal and fruit infusions (40.1 litres). Numerous individuals prefer to purchase tea and coffee from cafés or coffee shops when they are outside their homes. These establishments use the product for the packaging of their beverages, whether for dine-in or takeaway orders.

Increasing Number of Social Events to Boost Product Demand

The number of social events and celebrations is increasing across countries due to changing lifestyles, increasing income, and social media influence. This factor triggers demand for the product, which is highly used to serve beverages in social gatherings. Event planners and caterers buy the product in bulk to provide services mainly in events such as office parties and weddings, typically involving a large number of guests. For instance, in 2023, the International Caterers Association (ICA), a U.S.-based organization promoting the catering industry, surveyed more than 70 caterers in the country. As per the survey, corporate events and weddings are the key events driving the industry’s growth and produce the largest revenue for catering companies. In this respect, rising number of such events will contribute to paper cup sales in the coming years.

Market Restraints

Easy Availability of Substitute Products to Hamper Market Growth

The wide availability of cups developed using other materials, such as foam, plastic, ceramic, stainless steel, glass, and others, impedes global market expansion. Several end users globally prefer these alternatives due to their multiple advantages. For instance, stainless steel cups are highly durable and resistant to bacteria. Plastic cups are also durable and economical and can be used for both hot and cold beverages. Furthermore, glass and ceramic cups are aesthetically appealing and available in multiple attractive designs. These benefits of substitute products increase consumer’s inclination towards them and impact product demand. In addition, disposable paper cups are not typically preferred for daily use across households all over the globe. Residential end users prefer reusable tableware developed from materials such as steel, glass, and ceramic for everyday use, which further affects paper cup sales.

Market Opportunity

Increasing Interest in Recyclable Products to Provide Growth Opportunities

Growing paper cup recycling initiatives throughout countries increase the product’s appeal as a sustainable item and assist in meeting rising consumer expectations, positively influencing global paper cups market growth. For instance, in May 2024, NextGen Consortium, a U.S.-based initiative emphasizing reducing waste from foodservice packaging and the Foodservice Packaging Institute (FPI), a U.S based association announced that several paper mills in the country including Newman and Company, Inc, PaperWorks Industries, Milwaukee, and Greif Mill Group will accept single-use PE coated paper cups for recycling. This development brings the total number of paper mills accepting paper cups across North America to over 40. In another instance, in December 2022, The Cup Collective, a Europe-based initiative for recycling paper cups, was introduced in Brussels, Belgium. The programme collects used paper cups and recycles them into secondary products.

Paper Cups Market Trends

Rising Demand for Eco-friendly Products to Boost Product Sales

Numerous food and beverage industry players are shifting their preference from plastic and foam-based cups to eco-friendly drinkware for beverages to limit the environmental impact of their operations. In addition, the rising demand for eco-friendly and sustainable products among environmentally conscious individuals globally boosts the demand for sustainable drinkware. These are one of the key market trends providing opportunities to the players. The product is environmentally friendly as it is compostable, recyclable, and developed using renewable resources. Several players throughout countries, including Conver Pack, Canada Brown Eco Products Ltd, Benders Paper Cups, and Thoran Paper Products, are providing the product to cater to the growing demand for sustainable products. The rising consumer knowledge regarding plastic pollution has also resulted in end users shifting from plastic to paper cups.

SEGMENTATION ANALYSIS

By Type

Growing Popularity of Various Cold Beverages to Boost Cold Paper Cup Demand

The global market is bifurcated into cold cups and hot cups, based on type.

The cold cups segment dominated the market in 2024. The increasing popularity of various cold beverages, including smoothies, cold brew, iced coffee, and bubble tea, notably among younger demographics, triggers the adoption of cold cups. In addition, numerous individuals across countries prioritizing a healthy lifestyle prefer takeaway cold drinks such as probiotic juices, coconut water, and fruit & vegetable smoothies that are healthy, contributing to the segment’s expansion.

The hot cups segment will grow at the highest CAGR over the forecast period. Growing consumption of hot beverages such as tea and coffee daily from restaurants and cafés favors the segment’s growth. These beverages are highly demanded during winters and in regions with colder climates, further supporting the product’s sales. Moreover, branded coffee settings globally, including Costa and Starbucks, heavily use hot cups to provide better services.

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By Wall Type

Cost Efficiency of Single Wall Cups to Support Segment’s Growth

The global market is divided into single wall cups and multiple wall cups, based on the wall type.

The single-wall cups segment dominated the market in 2024. Lower material and product costs make single wall cups available at lower costs compared to their counterpart, which increases their adoption among budget-conscious end users, including offices, mid-scale catering service providers, and local coffee shops. Moreover, the product is preferred in fast-paced consumption settings such as conferences, airports, and corporates where users typically don’t hold the paper cup for long time. 

The multiple wall segment will grow at the fastest rate in the coming years. Multiple-walled cups provide better insulation than single-layered cups, making them a preferred option for hot beverages. The sturdiness and durability of these cups also reduce the possibility of spills and leaks. Moreover, they are highly used for takeaway drinks by quick-service chains and fast food businesses.

By End User

Increasing Use of the Product for Delivery and Takeaway Services by QSRs to Favor Segment Expansion

The market is segmented into households, quick service restaurants (QSR), and others, based on end-user.

The quick service restaurants (QSR) segment dominated the market in 2024. Quick service restaurants highly use the product as they are suitable for delivery and takeaway services. The product allows these establishments to provide rapid and efficient services, as they are not required to be washed. Furthermore, paper cups offer a branding opportunity to QSRs by providing a surface to print logos and designs, such as limited-edition drinks. In this respect, the rapid growth of quick service restaurants throughout countries is likely to fuel sales of the product in the forthcoming years.

The households segment holds the second-largest market share. The product is highly used for social gatherings and parties in households, as they are easy to dispose of and are considered a hygienic option for guests. As the product is not reused, it eliminates the risk of the spread of germs. Furthermore, household consumers are increasingly opting for customized paper cups with specific messages and designs for celebrations and birthday parties.

Paper Cups Market Regional Outlook

By region, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America dominated the global paper cups market share in 2024. Growing environmental awareness among individuals, coupled with the presence of prominent market players across the region, fuels the market growth. Moreover, the fast-paced lifestyle in the region has increased demand for on-the-go beverages, such as coffee, tea, and soft drinks, increasing paper cup sales. The U.S. is the most prominent domestic market. Increasing coffee consumption and growing adoption of the product across quick-service restaurants in the U.S, owing to rising sustainability commitments, boosts the product demand. For instance, in May 2020, Dunkin' Donuts LLC, a U.S.-based coffee & doughnut company, announced that 100% of its restaurants had transitioned from polystyrene foam cups to paper cups. According to the company, it has replaced foam cups with double-walled paper cups across all its U.S. restaurants.

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Europe

Europe is expected to grow significantly throughout the forecast period. The rising government focus on sustainability across Europe, coupled with the implementation of directives banning or restricting the use of single use plastics on the market of EU Member States, fuels the product’s adoption. Paper cup recycling initiatives contribute to the rising product adoption in the region. For instance, in April 2025, Keep Wales Tidy, a U.K.-based environmental charity, introduced an AI-based paper cup recycling initiative in Cardiff, U.K. Under the initiative, individuals buying beverages in paper cups from retailers such as McDonald’s, Costa Coffee, Caffè Nero, Pret, and Greggs can scan the used cups with the Bower app and return them to the store.

Asia Pacific

Asia Pacific will grow at the fastest CAGR during the forecast period. The high presence of coffee and tea-consuming populations across India, China, and Japan, coupled with a growing fast-food & takeaway culture owing to rising urbanization and busy lifestyles, fuels Asia Pacific paper cup market growth. Governments across the region are implementing strict regulations to reduce plastic waste, and many companies are actively seeking eco-friendly alternatives to plastic packaging, aligning with sustainability goals, which further fuels market growth. Paper cups, especially those made from biodegradable and recyclable materials, are gaining significant popularity across the Asia Pacific.

South America

High beverage consumption across the region accelerated demand for the product and favors regional expansion. For instance, coffee consumption is deeply rooted in South American culture, with Brazil being one of the top coffee consumers globally. According to the Brazilian Coffee Industry Association, 21.7 million coffee bags were consumed in 2023 across Brazil. Moreover, the rising trend of on-the-go coffee and increasing availability of takeaway services across specialty coffee shops & local cafés boost product demand. The increasing awareness regarding the presence of various harmful chemicals in plastic cups and their potential to leach into drinks is further expected to trigger demand for paper cups made using chemical-free and organic materials in the near term.

Middle East & Africa

Increasing number of food and music festivals and sports events across the region escalates beverage consumption among attendees and tourists, propelling paper cup sales. For instance, in February 2024, the Bahrain Tourism and Exhibition Authority, a government agency, launched its 8th Bahrain Food Festival, which had over 227,000 attendees. Several key market participants are focusing on boosting their production to cater to increasing product demand. For instance, in February 2023, Hotpack, a UAE-based food packaging solutions company, launched its new manufacturing facility in Qatar. According to the company, the new facility will produce a wide range of products, including paper cups and paper bags.

COMPETITIVE LANDSCAPE

Key Industry Players

Developing the Product in New Designs and Providing Customization Services by Prominent Players to Boost Sales

Intense competitive rivalry characterizes the global market. International prominent market players leverage their strong brand loyalty and presence to stay ahead of the competition. Consumers across countries are increasingly demanding the product that are both functional and fashionable. Thus, industry participants can develop the product in multiple attractive designs, features, and colors. The strategy will assist companies in attracting more customers and accelerate sales. Providing customization or personalization services and developing the product featuring a specific design or logo as per customer requirements also helps manufacturers expand their customer base.

Major Players in the Market

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Huhtamäki Oyj, WestRock, Graphic Packaging International, LLC, SCG Packaging Public Company Limited, and Dart Container Corporation are the prominent players in the market. The global market is fragmented, with the top 5 players accounting for around 32% of the market share.

List of Key Companies Profiled

• Dart Container Corporation (U.S.)
• THE PRINTED CUP COMPANY (U.K.)
• Huhtamäki Oyj (Finland)
• Hotpack PHotpack Packaging Ind. LLC.ackaging Ind. LLC. (UAE)
• SCG Packaging Public Company Limited (Thailand)
• Bender UK Limited (U.K)
• Graphic Packaging International, LLC. (U.S.)
• Georgia-Pacific Consumer Products LP (U.S.)
• WestRock (U.S)
• Pactiv Evergreen Inc. (U.S)

KEY INDUSTRY DEVELOPMENTS

• July 2025: WinCup, Inc., a U.S.-based company producing disposable foodservice products, acquired ConverPack Inc., a U.S.-based company producing cold and hot paper cups.
• April 2025: Spartanburg County, U.S, launched a paper cup recycling initiative through which more than 125,000 households in the region can recycle cold and hot paper cups.  
• February 2025: Graphic Packaging International, a U.S.-based packaging products company, redesigned its insulated paper cup, Cold&Go, to address challenges such as excessive condensation and poor insulation faced by stores and restaurants when serving cold drinks. The re-engineered product keeps beverages colder for a longer period and ensures less condensation and comfortable handling.
• August 2024: Hotpack, a UAE-based food packaging solutions company, launched its new online retail store, Eco Store, exclusively offering eco-friendly products.
• November 2023: SOFi Products, a U.S.-based paper products company, launched its new biodegradable paper cup for hot beverages, SOFI Hot Cup.

Investment Analysis and Opportunities

The paper cups market analysis report provides comprehensive investment analysis and opportunities in the paper cup industry to offer investors and business leaders actionable insights, seeking innovative packaging solutions. The report also highlights potential investment opportunities, including new product launches, growing production capacity, strengthening retail presence, regional analysis, and geographic expansions.

REPORT COVERAGE

The market report analyzes the market in-depth and highlights crucial aspects such as prominent companies, market segmentation, including type, wall type, and end-user. Besides this, the research report also provides insights into the global market trends and highlights significant industry developments by key players.

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Report Scope & Segmentation