The global paper cups market size was valued at USD 87.36 Billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.35% from 2022 to 2030. The market for paper cups is driven by changing lifestyles and changing eating habits of consumers. Moreover, increase in popularity of coffee shops and fast food outlets across developed countries is also projected to foster market growth. Furthermore, growing fast food industry across developed countries is further projected to uplift paper cup market growth over the forecast period. Continuous innovation by key players in the paper cups market will positively shape the industry in the near future.
Global Paper Cups Market: Regional Insights
Regionally, North America is expected to dominate the global paper cup market over the forecast period owing to the presence of favorable government policies regarding the increasing plastic waste on landfill. For instance, the Canadian Council of Ministers of the Environment (CCME) launched a Canada-wide strategy on zero plastic waste, and the government successfully released its first phase of the zero plastic waste implementation plans (CCME, 2019). Hence, the region may continue to contribute in implementing sustainable solutions along the way, thus boosting the regional market growth.
Europe is also expected to witness strong growth in the near future and this is attributed to the shifting focus of manufacturer of packaging industry towards bio-based packaging, among other alternatives. Additionally, growing demand for flexible packaging solutions across various end-user industries is again fueling regional market growth.
Figure 1. Global Paper Cups Market Share (%), By Region, 2021
Global Paper Cups Market Drivers:
Growing demand for on-the-go consumption of beverages is primarily driving growth of the paper cups market. For instance, according to the research "Functional Food, Beverage, and Supplements 2020" by The Hartman Group, 56% of adults use functional beverages to cure or prevent a specific condition. Hydration (34%), energy (18%), overall prevention (15%), and immunity were among the top conditions mentioned by consumers (13%). Manufacturers are responding to these requests by introducing new products that emphasize their health benefits and are packaged in recycled or recyclable paper cups.
Increasing innovation in paper cups market by key manufacturers is again projected to propel market growth. For instance, in July 2021, Lecta launched EraCup Natural, a recyclable, biodegradable and plastic-free paper-based solution for single-use cups. The material is ideal for hot and cold beverage cups and on-the-go disposable containers.
Global Paper Cups Market Opportunities:
Key manufacturers in the market are focusing on introducing highly functional but thin packaging that need multi-layer solutions with resistance to chemical and temperature, in order to withstand the harsh sterilization and wet-filling processes. Such development of products is projected to provide significant growth opportunities for market players in the near future.
Strong growth of smart packaging solution around the globe is projected to bring bright market opportunities in the market over the forecast timeframe. Smart packaging solution include technologies such as antimicrobial materials and temperature control packaging, desiccants and oxygen scavengers, labels, and devices that monitor the environmental conditions to ensure that the product is safe.
Global Paper Cups Market Trends:
Growing popularity of take-away services in the food &beverage sector is projected to spur the market over the forecast period. Hectic and busy lifestyle of consumers is again creating demand for easy disposable paper cups. Trend of take-away service will continuous to grow in the near future due to increasing employment across developing countries.
Rapid growth of online food delivery service due to growing digitalization worldwide is a rising trend in the market. Bio-degradable paper cups are gaining traction in the market as they offer 100% eco-friendly solutions for beverage packaging and have high demand from developed countries such as North America and Europe. These trends are projected to expand the market size over the forecast period.
|Base Year:||2021||Market Size in 2021:||US$ 87.36 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||6.35%||2030 Value Projection:||US$ 140 Bn|
Graphic Packaging International, Dart Container Corporation, Konie Cups International Inc., Huhtamaki OYJ, Kap Cones Private Limited, Eco-products Inc. (Waddington North America), Phoenix Packaging Operations LLC, Detmold Group, Benders Paper Cups, Georgia Pacific LLC (Koch Industries Inc.), Go-Pak UK Ltd, and Genpak LLC (Great Pacific Enterprises Inc.)
|Restraints & Challenges:||
Global Paper Cups Market Restraints:
Recyclability issues associated with the paper cups is a prime factor expected to hamper the global paper cups market growth. For Instance, according to an update in August 2021, Starbucks produces 4 billion single-use paper cups each year. They are, unfortunately, not recyclable in most regions. Starbucks has been unable to deploy a truly recyclable solution despite making ambitious sustainable packaging goals in 2008, nearly 13 years ago.
Increasing market share of plastic cups is another key factor expected to hinder the market growth. For instance, according to the recent survey, plastic cups still have a share of 80%, with the rest 20% being paper cups. This is a very small number.
Figure 2. Global Paper Cups Market Share (%) in terms of Values, By Material Type2021
Global Paper Cups Market Segmentation:
The global paper cups market report is segmented into cup type, end user, wall type, and geography
Based on cup type, the market is segmented into Hot Paper Cups and Cold Paper Cups. Out of which, Hot Paper Cups is expected to dominate the global market over the forecast period and this is attributed to the growing consumption of coffee, tea, and hot chocolate worldwide. The hot paper cup is partially coated with PE resins and have anti blocking and thermal insulation. According to International Coffee organization, Coffee is one of the most popular beverages on the planet. Around 166.63 Billion 60-kilogram bags of coffee were consumed globally in 2020/2021, up slightly from 164 Billion bags the previous year. This will create the demand for coffee shops and directly impact the use of hot paper cups in the stores to deliver hot beverages.
Cold Paper Cups segment is also expected to witness significant growth in the near future and this is owing to the growing consumption of soft drinks and juice worldwide. According to Coco Cola Sustainability report 2020, the company serves around 1.9 billion customers and consumers every day, and the company has around 7 Billion vending machines worldwide. To dispense the soft drink from the vending machine, the company uses paper cups. As a result, the growth in the overall production capacity is projected to augment the adoption of the paper cup packaging across the world.
Based on end user, the market is segmented into Quick Service Restaurants, Institutional, and Other End Users. Out of which, Quick Service Restaurants is expected to dominate the global market over the forecast period and this is attributed to the growing trend of eating out in urban cities across different regions. This trend was most observed among the millennial age group of 25 to 40 years.
Moreover, Quick-service restaurants are entering into partnership with different food chains. Such partnership is projected to increase the demand for paper cup packaging. For instance, in April 2021, Popeyes fast-food restaurant chain partnered with Gulf First Fast-Food Company to organize and promote the Popeyes brand in Saudi Arabia. The territory was given to Gulf First as an exclusive master franchise and development arrangement.
Institutional segment is also expected to witness significant growth in the near future owing to the growing preference of this segment towards recyclability and biodegradability of packaging solution. According to the survey conducted by the Institute for Scientific Information on Coffee, nearly two- thirds (61%) of European workers said that they drink coffee at work. The workers believe that it promotes creativity, concentration and even prevents workplace accidents.
Based on wall type, the market is segmented into Single-Wall Paper Cups, Double-Wall Paper Cups, and Triple-Wall Paper Cups. Out of which, Single-Wall Paper Cups is expected to dominate the global market over the forecast period and this is owing to the fact that they uses less energy and less paper to produce. Thus, they are more environmental friendly. According to BioPak Company, because of the lighter weight and smaller carton size of a single-wall cup, transportation-related emissions will be decreased as well, which leads to a 55% reduction in paper board, 44% in paperweight, 29% reduction in carton size, 20% reduction in carbon print
Double-Wall Paper Cups segment is also expected to witness significant growth in the near future is owing to their durability and rigidity which is creating its high demand across food &beverage industry.
Global Paper Cups Market: Key Developments
In May 2021, Graphic Packaging Holding Company stated that its successful partnership with International Paper Company came to an end. International Paper's membership interests in Graphic Packaging International’s partners were exchanged for an equal number of shares of Graphic Packaging’s common stock in the last installment. As a result, Graphic Packaging owns the partnership entirely.
Global Paper Cups Market: Key Companies Insights
The global paper cups market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global paper cups market are Graphic Packaging International, Dart Container Corporation, Konie Cups International Inc., Huhtamaki OYJ, Kap Cones Private Limited, Eco-products Inc. (Waddington North America), Phoenix Packaging Operations LLC, Detmold Group, Benders Paper Cups, Georgia Pacific LLC (Koch Industries Inc.), Go-Pak UK Ltd, and Genpak LLC (Great Pacific Enterprises Inc.)
*Definition: Paper cups are cups made of paper, often lined with wax or plastic to prevent leakage. They are widely used in the world. Some types of paper cups are made from recycled paper.
A paper cup is a disposable cup made of paper, often lined with wax or plastic, to keep liquids from leaking. These cups are widely used around the world. Paper cups are also often made from recycled paper. The environmental impact of these cups is less than those of other types of cups, and they are also an environmentally friendly option. Paper cups became more popular after the Spanish flu epidemic of 1918, which killed fifty-to-one million people.
The growth of paper cups market can be attributed to the growing environmental awareness. Several countries around the world are implementing initiatives to reduce plastic waste and promote sustainable eating. For instance, countries like the U.S. and France have banned the use of single-use plastic cups. Also, increasing number of quick service restaurants and cafes is again expected to foster market growth. Moreover, rising popularity of take-away services in the food and beverage sector is further projected to augment market growth.
On the other hand, concern associated with the recyclability of paper cups as they have plastic coatings is expected to hamper the market growth.
Key features of the study: