PAPER CONE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Paper Cone Market size is expected to reach US$ 13.18 billion by 2030, from US$ 8.05 billion in 2023, at a CAGR of 7.3% during the forecast period. Paper cones refer to conically shaped containers made using paper and cardboard. They are widely used for serving food products like ice creams, cupcakes, cookies, candies, snacks, etc. Paper cones are renewable, recyclable and biodegradable. Key factors driving market growth include rising demand from F&B industry and increasing preference for sustainable packaging solutions.

The Paper Cone Market is segmented by cone type, capacity, sales channel, end-use industry and region. By cone type, the market is segmented into paper cup base cones, ice cream cones, vuvuzela cones, drinking straw cones and others. The paper cup base cones segment will exhibit significant growth during the forecast period owing to wide application scope across end-use industries.

Paper Cone Market Regional Insights

• North America is the largest market for paper cones, accounting for over 25% of the global market share. The growth of this market is driven by the increasing demand for paper cones from the textile and yarn industries in the region. The United States is the largest market for paper cones in North America, followed by Canada and Mexico.
• Europe is the second largest market for paper cones, accounting for over 20% of the global market share. The growth of this market is driven by the increasing demand for paper cones from the food and beverage industry in the region. Germany, France, and the United Kingdom are the largest markets for paper cones in Europe.
• Asia-Pacific is the fastest growing market for paper cones, accounting for over 35% of the global market share. The growth of this market is driven by the increasing demand for paper cones from the textile and yarn industries in the region. China, India, and Japan are the largest markets for paper cones in Asia-Pacific.

Figure 1. Global Paper Cone Market Share (%), by Region, 2023

Paper Cone Market Drivers

• Rising demand from F&B industry: The rising demand for paper cones from the food and beverage (F&B) industry is a major factor driving the growth of the paper cone market. The F&B sector utilizes paper cones for packaging various food items like ice creams, cupcakes, candies, chocolates, and others. The surging consumption of on-the-go and ready-to-eat foods globally is resulting in high demand for paper cones as a sustainable and convenient packaging solution. Various F&B brands are increasingly adopting paper cones for brand differentiation and enhancing consumer experience. The innovation in cone shapes, sizes, printing techniques further aids the adoption of paper cones in F&B applications.
• Increasing demand for sustainable packaging: The growing consumer inclination towards eco-friendly and sustainable packaging solutions is boosting the demand for paper cones. Paper cones are renewable, recyclable and biodegradable. Unlike plastic packaging, paper cones do not release any greenhouse gases during decomposition. The stringent regulations on single-use plastics have forced F&B companies to adopt eco-friendly paper packaging, which is catalyzing the paper cone market growth. Moreover, various brands are using paper cones for promoting their sustainability credentials.
• Rapid growth of online food delivery services: The rapid penetration of online food delivery services such as food delivery apps is contributing to the rising adoption of paper cones. Paper cones allow secure transportation of food items mitigating any leakage or contamination issues. The flourishing online food delivery industry is expected to create lucrative sales opportunities for paper cone manufacturers. The growing consumer preference for convenient and ready-to-eat meal options coupled with expanding online and mobile food delivery services will continue to propel market growth during the forecast period.
• Launch of innovative paper cone products: The introduction of innovative paper cone designs catering to changing consumer preferences is aiding the paper cone market growth. Manufacturers are developing advanced printing techniques to offer visually appealing and customizable cone designs. The launch of edible paper cones presents lucrative growth opportunities to leverage the clean-label and natural food trends. Some companies are also launching compostable and water-resistant paper cones made using organic materials. Such innovations will continue to boost product adoption across diverse end-use industries.

Paper Cone Market Opportunities

• Untapped markets in developing economies: The emerging economies in Asia Pacific, Latin America, and Middle East & Africa offer lucrative expansion opportunities for paper cone manufacturers. These regions exhibit high growth potential attributed to the expanding F&B and e-commerce sectors. The rising internet penetration and digitalization in developing countries is expected to promote retail and online food delivery services, creating high demand for paper packaging solutions like cones. Companies are establishing manufacturing facilities in emerging markets to cater to the escalating paper cone demand and gain a competitive edge.
• Rising adoption in emerging application areas: The widening application scope of paper cones across industries such as textiles, agriculture, construction presents remunerative opportunities for manufacturers. Paper cones are gaining traction as cost-effective and sustainable packaging solutions for seeds, fertilizers, textile cones, interior designing cones, party props, and others. Market players are also targeting the retail and e-commerce spaces to boost product adoption for packaging various items. The development of customized cone designs aligned with application requirements will enable manufacturers to expand their customer base and increase sales.
• Development of eco-friendly paper cone solutions: Sustainability is a crucial factor influencing packaging purchase decisions. Consumers are demanding eco-friendly paper packaging solutions. Manufacturers are investing in R&D activities to introduce paper cones manufactured using renewable materials such as bamboo fiber. Developing compostable and water-resistant paper cones using organic coatings is an opportunity to differentiate product offerings. Market players can also leverage technologies like digital printing to provide fully-recyclable paper cones without any mixed material barriers. The introduction of such green solutions will help companies gain a competitive edge in the market.
• Strategic partnerships and acquisitions: Strategic collaborations, mergers, and acquisitions allow paper cone manufacturers to improve production capabilities, expand product portfolio, enter new markets and enhance distribution network. Acquiring emerging start-ups specializing in sustainable packaging provides access to advanced technologies for developing eco-friendly paper cones. Partnerships with e-commerce and online food delivery platforms can help generate additional revenue streams. Companies can also collaborate with leading F&B brands to develop customized cone designs and printing techniques, catering to evolving consumer preferences.

Paper Cone Market Trends

• Growing adoption of biodegradable paper cones: With rising environmental concerns, F&B brands are increasingly adopting biodegradable paper cones manufactured using natural materials like bamboo fibers. These cones decompose faster than conventional paper cones. Manufacturers are leveraging technologies like digital printing to provide fully biodegradable cones without affecting print quality or recyclability. Market players are also aiming for sustainability certifications to attract eco-conscious consumers. The trend of biodegradable paper cones made from renewable resources will continue gaining prominence during the forecast period.
• Focus on customization of paper cones: Brands are continuously seeking custom-printed paper cones that align with their product's branding and aesthetic. Catering to growing customization demand, manufacturers are expanding their printing capabilities to offer short-run bespoke designs per customer specifications. Advances in digital printing technology allow quick turnaround of small batches with custom prints, shapes, colors and food-safe coatings. Some companies also provide on-demand services to design and deliver custom cones suited for customer applications within 48 hours.
• Automation in paper cone manufacturing: Leading players are adopting automated production systems to optimize costs and improve product quality as well as output. Robotic handling and automatic paper cone making machines are enhancing productivity and consistency while reducing labor costs and material wastage. Manufacturers are also implementing cobots, sensors, barcode scanners and other Industry 4.0 technologies to minimize human error and achieve faster QC and inspection. The trend of process automation and digitization will continue transforming paper cone manufacturing.
• Emergence of smart packaging solutions: Integration of smart technologies such as sensors, QR codes and RFID with paper cone packaging enables brands to provide enhanced consumer engagement and supply chain visibility. Smart paper cones allow consumers access to detailed product information via scanning QR codes through smartphone apps. Additionally, real-time monitoring of product location, condition and integrity across supply chain is possible. Although in the nascent stage, smart cone packaging offers potential growth opportunities in the foreseeable future.

Paper Cone Market Restraints

• Availability of alternative packaging solutions: Paper cones face stiff competition from alternative packaging solutions like plastic cones, foil wrappers, boxes, bags and others. Plastic cones are moisture-resistant and offer high durability. Shifting consumer preference towards plastic packaging in some applications may hinder the paper cone market growth. However, the popularity of paper cones can be attributed to the rising anti-plastic sentiment among consumers and brands.
• High production cost of paper cones: The complex manufacturing process involving pulping, bleaching, shaping, drying and printing results in high production costs of paper cones. The additional food-grade coatings further increase costs. This makes paper cones more expensive than plastic cones. Manufacturers need high investments in R&D and advanced machineries to develop affordable paper cone solutions. This can restrict adoption among price-sensitive consumer segments.
• Complexities in recycling paper cones: The presence of mixed materials like plastic coatings, dyes, adhesives on printed paper cones creates certain challenges in recycling. Sorting and separating different materials make the recycling process complex. This can result in higher rates of paper cone wastage diminishing the sustainability quotient. Market players need to ensure easy recyclability by minimizing material mixing while catering to aesthetic needs.

Recent Developments

New product launches

• In March 2022, Huhtamaki launched fiber-based ice cream cones made from renewable wood fibers offering enhanced sustainability.
• In January 2021, Conitex Sonoco launched compostable paper cones made using potato starch and other renewable materials.
• In November 2020, Tubettificio Senese introduced edible ice cream cones manufactured using tapioca starch and natural flavors.

Acquisition and partnerships

• In June 2022, Sonoco partnered with Delivering Good to provide paper cone packaging for humanitarian aid applications.
• In April 2021, Paper Machinery Corporation acquired Southeastern Paper Converting Machine Co. to expand paper cone production capacities.
• In January 2020, Raeed Company partnered with Two Scoops to develop customized paper cones for ice cream branding.

Figure 2. Global Paper Cone Market Share (%), by Sales Channel, 2023

Top companies in Paper Cone Market

• Conitex Sonoco
• Tubettificio Senese S.r.L
• Sunnytexcone India (P) Ltd
• Jaalouk & Co
• Savio Texcone Private Limited
• FAVRETTO
• Bharath Paper Conversions
• Saroja Texcone
• Pacific Cones
• MANDAHAR GROUP OF COMPANIES
• Royal Paper
• ZHEJIANG ETERNAL SILICONE AND PLASTIC CO., LTD,
• New Toyo International Holdings Ltd
• Sonoco Products Company
• Yasar Group

*Definition: The Paper Cone Market refers to the industry comprising of manufacturers offering conically shaped paper packaging products used for serving various food items and other consumable goods. Paper cones provide convenient handling and consumption of on-the-go foods like ice creams, cupcakes, candies, snacks, etc. They are renewable, recyclable and biodegradable. Key applications include food service outlets, confectioneries, households, textiles, agriculture and others. The growing consumer inclination towards sustainable packaging solutions is the major factor driving the paper cone market growth globally. Leading manufacturers are innovating in terms of bespoke designs, digital printing, automation, and biodegradable materials to gain competitive advantage.

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