Paper Cups Market Size, Share & COVID-19 Impact Analysis, By Type (Hot Paper Cups and Cold Paper Cups), Wall Type (Single Wall Paper Cups and Multiple Wall Paper Cups), and End-User (Households, Quick Service Restaurants (QSR), and Others), and Regional Forecast, 2023-2030

The global paper cups market size was valued at USD 9.90 billion in 2022 and is projected to grow from USD 10.43 billion in 2023 to USD 12.94 billion by 2030, exhibiting a CAGR of 3.1% during the forecast period.

Cafes and restaurants use disposable paper cups to instantly serve their customers coffee, tea, soup, and other beverages. These products are available in different shapes, sizes, and colors. They prefer custom-printed disposable food service products to portray their brand information and build restaurant service sales. Growing demand for paper cups, plates, trays, spoons, and other disposable food service products in restaurant settings accelerates the paper cup market growth.

• According to the data published by Green Piece Organization, in 2020, Starbucks’s Japanese coffee chain establishments utilized 39.3 million and 50.4 million disposable paper cups in its dine-in and takeaway services, respectively.


• In the financial year 2022, Graphic Packaging International, a paperboard mill company, sold around USD 1.8 billion of food service disposable products to restaurants, households, and other customers globally.

COVID-19 IMPACT

Closure of Restaurant Establishments During COVID-19 Pandemic Impacted Product Demand

Incidences of closure or limited operations of restaurant and café establishments during the multiple waves of the COVID-19 pandemic significantly impacted the consumption rate of paper-based tableware in many countries globally. In addition, the packaging industry’s supply chain disruption was due to the COVID-19-related lockdown restrictions which hampered the product demand internationally. However, reopening the quick-service restaurants (QSR) after loosening COVID-19 lockdown restrictions supported the consumption rate of disposable food service products. Furthermore, significant usage of insulated disposable cups at healthcare establishments during the pandemic supported the global market growth.

• As per the data published by the National Restaurant Association, in 2020, around 80,000 restaurants were temporarily or permanently closed in the U.S. due to the COVID-19 pandemic. In addition, as per the government of British Columbia’s information services center, around 13,000 restaurants in Canada were permanently closed due to the COVID-19 pandemic. 


• According to the data published by the Paper Cup Manufacturer Association Bangladesh (PCMAB), after the first wave of the COVID-19 pandemic, around 200 million paper cups were sold every month across Bangladesh, compared to 50 million before the pandemic.

LATEST TRENDS

Rising Demand for Eco-friendly and Recycled Paper-based Disposable Cups

Shifting restaurant and hotel consumers’ preference from plastic and foam-based cups to eco-friendly beverageware to avoid waste generation from their food service operations will favor the paper cup industry's growth. Recently, paper mills have focused on building recycling facilities to significantly use recycled paper material in their products. These companies' initiatives will likely create newer growth opportunities in the paper cup market. According to the data published by the State of Oregon Department of Environmental Quality, in 2021, U.S.-based paper and paperboard mills utilized 32.9 million tons of recovered paper in their products, a 4.7% increase over the previous year.

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DRIVING FACTORS

Growing Coffee and Tea Consumption to Drive Product Demand

Growing coffee and tea consumption among people to improve energy & stamina is simultaneously driving the global demand for paper coffee cups. In addition, rising demand for takeaway food services and increasing consumption of ready-to-drink beverages among the global population is accelerating the paper cups market growth. 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.    

Rising Commercial Infrastructural Settings to Support Product Consumption

Rising commercial infrastructural settings, such as, educational institutions, food catering, restaurants, health clubs, and others, will likely support consuming foodservice disposable products and drive market growth. In addition, increasing demand for custom-printed double-wall beverage ware among official settings is accelerating global product demand. According to the data published by the Department of Statistics, Government of UAE, in 2021, 30,000 UAE-based food outlets generated hotel, restaurant, and institution industry revenues of USD 12.3 billion, 17% up over 2020.

RESTRAINING FACTORS

Availability of Substitute Products to Hamper Market Growth

The availability of disposable cups of materials other than paper & paperboard, such as, foam, plastic, ceramic, stainless steel, and others, is hampering the market growth. In addition, increasing household consumer demand for reusable tableware products to minimize the disposition of tissue paper, wipes, cups, plates, and other paper products is impacting global product demand.

SEGMENTATION

By Type Analysis

Cold Paper Cups Held a Major Market Share Due to its Lightweight and Affordability 

The global paper cups market analysis can be conducted based on hot and cold beverage cups. In 2022, the cold segment exhibited a major market share due to the lightweight and affordability of such products over their counterpart. In addition, restaurant and hospitality clients’ preference for cost-effective cold beverage ware is accelerating the segmental growth.

However, increasing demand for custom-printed hot beverage ware among corporate establishments and settings related to public events supports the hot segmental growth. Due to an extra layer of textured patterns and wax material in the hot paper cups, they are sold by the manufacturers at higher prices than cold ones.

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By Wall Type Analysis 

Significant Production of Single Wall Cups Over Counterpart Results in Single Wall Cups Segment to Lead Market

The market is segregated into single and multiple-wall paper cups based on the wall type.

The single-wall cups segment holds a major market share due to the significant companies’ focus on producing cost-effective and eco-friendly single-wall products globally. For instance, BioPak, a sustainable products maker, is producing premium-based Single Wall BioCup products made of plant-based bioplastic (Ingeo™) that can lower carbon emission levels up to 75% compared to plastic-based ones.

In addition, increasing consumption of flavored dairy beverages and continual usage of single-wall products in serving milk-based beverages at restaurants & cafes will likely drive segmental growth. Manufacturing single-wall bowls requires lesser energy and paper material usage over double & multiple-wall cups.

The double-wall segment will grow considerably due to the increasing usage of double-layered products in serving hot coffee & tea at cafes. Furthermore, coffee shops’ preference toward using multiple wall cups to portray their brand image through such products is mainly driving the multiple wall cups segment growth.

By End-User Analysis

QSR Holds Significant Segmental Share due to Considerable Product Usage 

Based on end-user, the market is segregated into households, quick-service restaurants (QSR), and others. Significant quick-service-restaurants (QSR) segmental share is attributed to the considerable consumption of disposable cups during dine-in and takeaway food service activities in these settings. In addition, increasing demand for printed food service disposables among fast food and quick-service restaurant settings is accelerating segmental growth.

Growing party & festival celebration trends and evolving at-home food catering services will likely support the consumption of disposable tables among households and drive household segmental growth. Others segment include various end-users such as offices, educational institutions, hospitals, hotels, etc. Growing hospitality and corporate infrastructural facilities support the product demand in these settings.

REGIONAL INSIGHTS

The international market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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North America was valued at USD 4.87 billion in 2022. The region holds a major market share due to the significant consumption of food service disposables among the household & restaurant settings in the U.S. and Canada. For instance, in 2022, Huhtamäki Oyj, a Finnish consumer packaging company, sold around USD 1,584.78 million of tableware, food service, and consumer goods packaging products in North America.

Besides, increasing imports of disposable beverage ware for food service usage in Canada and Mexico support the market growth in these countries. According to the data published by the Department of Statistics, Government of Canada, in 2021, around USD 112.35 million of cups and cones made of paper & paperboard were imported for local consumption in Canada.

Double-wall disposable tableware is widely used among fast-food restaurants due to the higher durability of such products. The rising number of food caterers and restaurant settings in China, India, and Southeast Asia will likely support the consumption of disposable products and drive the Asia Pacific region’s market growth. According to the data published by the China Catering Association (CCA), the number of food service catering firms in China increased from USD 1.22 million in 2017 to USD 2.36 million in 2020. Furthermore, evolving party and festival celebration trends among households and office settings in India and Southeast Asia are accelerating the consumption of such products in the region.

In addition, high demand for such products during coffee serving activities at coffee shops mainly results in Europe’s considerable market growth. As per the surveyed data published by Essity AB, a hygiene and personal health company, in 2022, more than 3.2 billion Britons consume paper-based cups annually. A growing restaurant chain in Middle Eastern countries such as UAE and Saudi Arabia which is driving the product consumption rate in these countries as well.

Consumers' accessibility to cost-effective disposable tableware, such as, cups, plates, spoons, and other products, supports the South American market growth.

KEY INDUSTRY PLAYERS

Production Capacity Building to Build Key Players’ Business Expansion

Nowadays, key players such as Graphic Packaging International, LLC., Dart Container Corporation, and others are focusing on building the production capacity of paper recycling to produce sustainable paper cups and lower their production costs. These company’s efforts will support their business operations. For instance, in February 2023, Graphic Packaging International, LLC. Invested USD 1.0 billion to increase its North American recycled paperboard capacity from 4.2 million to 4.4 million tons. The company can produce around 15 million paper products daily with such an investment. 

LIST OF KEY COMPANIES PROFILED:

• Graphic Packaging International, LLC. (U.S.)


• Dart Container Corporation (U.S.)


• Georgia-Pacific Consumer Products LP (U.S.)


• THE PRINTED CUP COMPANY (U.K.)


• Jiangsu Yinwang New Material Technology Co., Ltd. (China)


• Huhtamäki Oyj (Finland)


• Pactiv LLC. (U.S.)


• Greiner Packaging International GmbH (Austria)


• Hotpack Packaging Ind. LLC. (UAE)


• Genpak LLC. (U.S.)


• Konie Cups International Inc. (U.S.)


• Grupo Phoenix Capital Limited (U.S.)


• Bender Limited (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• In May 2023, Manjushree Packtek Pvt. Ltd. acquired Jallan Polypack, an Indian sustainable paper cup packaging company, to strengthen its portfolio of technology-based packaging solutions in India.


• In March 2023, WinCup, Inc., an Atlanta, U.S.-based foodservice disposable manufacturer, launched a range of plastic-coated paper cups with material derived from canola oil in the U.S.


• In June 2022, Tea Time, an Indian network of tea franchise outlets, partnered with ScrapQ Hub, a scrap aggregator company, to recycle and reuse scrap material to produce plastic-lined paper cups.


• In October 2021, the Atlanta, U.S. government partnered with ten municipalities, including 350,000 area residents, to collect and recycle paper cups. These governmental initiatives will strengthen the local recycled paper cup industry.


• In September 2020, Georgia-Pacific Consumer Products LP. partnered with the Foodservice Packaging Institute (FPI), a Virginia, U.S.-based food packaging association, to achieve an opportunity to recycle mixed paper bales from the U.S.-based McDonald’s and Starbucks outlets. This initiative will help the company produce recycled products.

REPORT COVERAGE

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The market research report provides a detailed international market analysis and focuses on crucial aspects, such as key companies, key product types, and distribution channel areas. Besides this, the report on the paper cups market outlooks insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report outlines several factors that have contributed to the growth of the market in recent years.

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