Paper cups are an environmentally friendly, disposable alternative to plastic cups. They are made of recycled paper coated with wax to prevent liquid from leaking out. They are widely used around the world. While they are not completely biodegradable, they do have several advantages. For one, they are completely recyclable. The process of making paper cups starts by harvesting trees. They are then transported to a specialist facility. The paper is then separated from the plastic coating using a process similar to the action of a washing machine. The paper is made with a great deal of water, and a large amount of water is required to separate the paper and plastic coating.

Market Statistics:

The Global Paper Cups Market is estimated to account for US$ 87.36 Billion in terms of value by the end of 2021.

Global Paper Cups Market: Drivers

Factors such as easy disposable of paper cups, hygiene, easy to use, and other functionality are driving growth of the paper cups market. Increasing number of on-the-go consumers and growing consumption of hot beverages such as tea and coffee among populations are other major factors expected to foster market growth. Moreover, various manufacturing companies are increasing production of capacity paper cups to cater to growing demand which is further projected to stimulate the market growth. For instance, in March 2021, Feenot Green Pak has installed a high-speed paper cup machine GH990.

Global Paper Cups Market: Opportunities

Governments around the world are taking initiatives to stop the plastics from being used in out-of-home packaging items. Single-use foodservice packaging products, such as plastic cups, have been recommended to be removed or banned across the world. For instance, there are many policies in the European Union and Australia to phase out single-use plastics by 2023. Moreover, Taiwan aims to do the same by 2030. Such initiatives are expected to hold potential growth opportunities for key players in paper cup market.

Global Paper Cups Market: Restraints

Outbreak of covid-19 impact has led to disruption in production and supply of paper cups due to lack of workforce and lockdown norms worldwide. The covid-19 had temporarily affected the market of paper cups in 2020.

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Global Paper Cups Market - Impact of Coronavirus (Covid-19) Pandemic

Due to the COVID-19 guidelines, several policies were implemented to restrict the spread of virus. Most of the factories were shut down. For Instance, in August 2020, Sirpur Paper Mills, a part of JK Paper Ltd, has temporarily closed its manufacturing facilities in India due to low demand caused by the coronavirus pandemic.  The resulting lockdowns in several sections of the country had lowered demand for the subsidiary’s paper packaging products.

Key Takeaways:

The global Paper Cups market was valued at US$ 87.36 Billion in 2021 and is forecast to reach a value of US$ 140 Billion by 2030 at a CAGR of 6.35% between 2022 and 2030.

Paper segment held dominant position in the global Paper Cups market in 2021, accounting for 93.54% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.

Global Paper Cups Market Trends:

Fast food chain service are taking initiatives to reduce plastic wastage on landfill and this ongoing trend is projected to uplift the demand for paper cups across service industry. For instance, in January 2021, Yum China, a licensee of Yum! Brands in mainland China and the operator of fast-food chain KFC and quick-service restaurant brand Pizza Hut launched a series of plastic reduction and sustainable packaging initiatives across its brands in line with the latest regulations in China. Packaging initiatives are expected to reduce approximately 8,000 metric tons of non-degradable plastics annually in 2020.

Continuous innovation by key manufacturer in the paper cups is emerging as a major trend in the market. For instance, in July 2021, Lecta launched EraCup Natural, a recyclable, biodegradable, and plastic-free paper-based solution for single-use cups. EraCup Natural is the first product in Lecta’s new range of functional papers, aligned with responsible consumption habits. The material is ideal for hot and cold beverage cups and on- the-go disposable containers.

Global Paper Cups Market: Competitive Landscape   

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.)


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