Global Foodservice Disposable Distribution System Market to Surpass US$ 78.15 Billion by 2025

Published On : May 28, 2018

Global Foodservice Disposable Distribution System Market was valued at US$ 56.75 billion in 2017 and is expected to reach US$ 78.15 billion by 2025, witnessing a CAGR of 3.61% over the forecast period (2018 – 2025), according to Foodservice Disposable Distribution System Market Report, by Product Type (Tableware Disposables, Finger Food Disposables, and Durable Plastic Glasses), by Distribution Channel (Wholesale and Retail), and by Application (Restaurants, Bars and Pubs, Clubs, Foodservice Providers and Caterers, and Others). Growing demand from QSRs is a major factor driving growth of the food service distribution systems market. According to Coherent Market Insights, the global QSR market was valued at US$ 720.9 billion and is expected to witness CAGR of 4% during the forecast period (2018-2025). These QSRs offer takeaway and also home delivery options, which has led to high demand for disposables distribution systems such as disposable tableware. Additionally, fast food joints such as roadside food trucks, which do not generally offer seating facilities and do not have dishwashing options available demand disposables, which is another factor aiding in growth of the market.

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Key Trends and Analysis of the Foodservice Disposables Distribution System Market:

  • Among product types, disposable tableware segment such as plates is expected to hold majority share in the market in 2017 and is further expected to maintain its dominance during the forecast period. Rising number of fast food joints offering takeaway services is a major factor driving growth of the segment. Additionally, growing demand for recyclable tableware is further expected to support growth of the segment. Furthermore, option of custom printed plates and bowls offered by different manufacturers is further expected to aid in growth of this segment.
  • Disposables made from paper and plastics held majority share in the market in 2017. One of the major driving factor for growth of the paper disposable plates is due to its biodegradable nature. Additionally, easier recycling option compared to plastics is further stimulating segment growth. On the other hand, plastic disposables such as cups and glasses are widely used for beverages. One of the major driving factor is it requires less energy for manufacturing. However, ban on using plastic by several countries has impacted the segment growth for plastic disposables. For instance, France banned the use of plastic cups, plates, and cutlery in 2016. Furthermore, EU plans to ban the use of single-use plastics to reduce pollution, which is expected to impact the market growth in the region.

Key Takeaways of the Market:

  • Asia Pacific is a lucrative market for foodservice disposables distribution system over the forecast period. According to Agriculture and Agri-Food Canada, the Chinese food service industry was valued at US$ 414.7 billion in 2014 and the fast food sector representing 23% of the sales in the same year. International food chains are focusing on expanding In Asia Pacific and this is expected to boost the market growth in this region. For instance, leading brands of food chains such as Little Caesars, Sarpino’s Pizzeria, Hesburger, and Ice Cream Lab are planning to enter in the India market in the near future. Furthermore, focus on store expansion by leading food chains in smaller cities is also expected to drive growth of the quick service restaurant market and further creating additional demand for disposable distribution systems. For instance, McDonald’s plans to open 2,000 new stores over the next five years in China and over 45% of its stores are expected to be located in smaller cities. Additionally, with increasing disposable income among the populous in the region and growing demand for on-the-go products, demand for disposable products in food service distribution systems is expected to rise. According to National Bureau of Statistics, China, the per capita disposable income increased by 9% in 2017 compared to its previous year.
  • Technological advancement and product innovation are key factors, which are expected to drive market growth during the forecast period. Packaging manufacturers are introducing disposables made of materials that are alternative to plastic, aluminum, and paper. For instance, Pappco, a manufacturer of ecofriendly food packaging products is using Bagasse, the fibrous remains after extraction of sugarcane juice to manufacture disposable products. The sugarcane remains are remolded to a paper form, which is then used to make disposable cups, glasses, and plates providing an eco-friendly alternative to plastics. The company also offers disposable food packaging products made of other alternative materials such as bamboo and leaves of Areca palm trees.

Some of the key manufacturers operating in the global foodservice disposables distribution systems market are Dispo International, EFG Foodservice, First Pack, Go-Pak Group, MBS Wholesale Ltd, Party & Paper Solutions Ltd., and others.

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