Paper Cups Market Growing at a of 4.5% CAGR by 2031 | Development Status, Competition Analysis, Type And Application

Press Release from Future Market Insights

Paper cups are used in food and beverage, household and institutional sectors. Their high utility across the spectrum can be attributed to their low-weight, eco-friendly nature, cost-effectiveness, and high recyclability.  Driven by growing emphasis on better consumer experience, the paper cups market saw steady growth rate of 4.5%   CAGR  between 2021 and 2031, reaching valuation of around  US$ 9210 million  by the end of the year. Future Market Insights (FMI) estimates that paper cups revenues grew by  4.3% year-on-year in 2021 owing to outbreak of COVID-19 pandemic and rising demand of on-the-go paper cups around the world.

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Amidst banning of single use plastics across the globe and growing efforts to eliminate plastic from packaging has led to emergence of paper based packaging items as a feasible solution. This has lead to adoption of paper cups in food service industry over past few years.

Rising establishment of quick service restaurants in emerging economies and adoption of take away culture to suit the need of convenience will drive the paper cups demand during the forecast period.

Increasing focus on developing recyclable, biodegradable and plastic free cups, high demand for packaged foods and incorporation of disposable products in online food delivery services will further accelerate the market growth.

Presence of fast food giants and rising awareness in western countries regarding harmful effects of plastic has boosted the adoption of paper cups in such region. Market players are emphasizing on penetrating emerging economies of Asia and Africa due to surge in opening of fast food joints, rise in millennial and working population and soaring popularity of dining out in these countries.

Emergence of online food services and adoption of on-the-go services will create opportunities for market growth. Increasing installation of modern vending machines in high crowd locations like railways and airport to provide better consumer experience will positively influence the market growth in upcoming years.

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Key Takeaways from FMI’s Paper Cups Market Study

  • The U.S. will drive the paper cups market in upcoming years due to establishment of modern food service industries in urban cities of the country. Increase in disposable income of people, and busy lifestyle will further accelerate the market growth.
  • Establishment of new fast food joints and coffee and beverage shops in GCC countries will boost the demand for paper cups in the region.
  • China will offer lucrative opportunities for paper cups market expansion. Improvements in recycling infrastructure, boosted tourism, and high consumption of tea and coffee will drive the paper cup market growth.
  • India paper cups market is forecast to experience substantial demand during the forecast period owing to improved standards of living, changes in consumer lifestyle habits, and ban of single use plastics in the country.
  • More than 65% of global paper cups market sales comprises of hot beverage cups owing to increasing demand of on-the-go coffee by millennials.
  • Emergence of eating out trend rather than eating home cooked meals will create an absolute dollar of opportunity worth more than US$ 1.4 billion over the forecast period.

 “Implementation of strict regulations on plastic waste generation WILL drive the sales of paper cups to reduce pollution. Rising demand for disposable and biodegradable packaging to cater to busy lifestyle will boost the paper cups market growth throughout the forecast period,” says the FMI analyst

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Competitive Landscape

Future Market Insight (FMI) explains the recent competitive scenario in the paper cups market along with different strategies employed by manufacturers to gain significant edge.

Key players in the paper cups market are focusing on new product development to gain popularity among end users.

For example, in December 2020, BrandBase introduced the world’s first plastic-free disposable coffee cup called “Jungle Cup” which biodegrades within 12 weeks without any external processing.

In January 2020, Lavazza Professional introduced biodegradable and recyclable cup especially for vending machines.

In July 2019, Huhtamaki announced its new 100% PEFC (Programme for the Endorsement of Forest Certification) certified paperboard made “Bioware Impresso” double walled hot cup as a part of its existing Bioware compostable range.

The report also states that manufacturers are also focusing on the expansion of businesses in the developing markets owing to booming fast food industry in those regions and partnering with new value chain participants to achieve sales growth. 

More Insights On The Global Paper Cups Market

In its latest report, FMI offers an unbiased analysis of the global paper cups market, providing historical data for the period of 2019-2028 and forecast statistics for the period of 2021-2031. In order to understand the global market potential, its growth, and scope, the market is segmented on the basis of cup capacity (up to 150 ml, 151 to 350 ml, 351 to 500 ml, and above 500 ml), cup type (hot beverage cups and cold beverage cup), sales channel (supermarkets, distributors, departmental stores, and online sales), end user (food service, institutional, and households), across seven major regions (North America, Latin America, Eastern Europe, Western Europe , Asia Pacific, and Middle East and Africa)

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