The global beverage coaster market is estimated to account for USD 1.5 billion in 2024. It is anticipated to grow at a CAGR of 3.5% during the assessment period and reach a value of USD 2.1 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Global Beverage Coaster Market Size (2024E) | USD 1.5 billion |
| Projected Global Beverage Coaster Market Value (2034F) | USD 2.1 billion |
| Value-based CAGR (2024 to 2034) | 3.5% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
Sustainable Material Demand in Developed Countries to Accelerate Adoption
Sustainable materials are not a thing of the future now. Every industry in each and every sector is coming up with ways to introduce these materials in their day-to-day operations. In the beverage coaster market, too, manufacturers are investing comprehensive research hours into developing materials that cause little to no harm to the environment. By doing so, these companies not only lower their carbon footprint but also improve their brand image in the general populace.
Several brands are also bringing different strategies to the market to make their coaster more sustainable. For instance, in 2022, Patina Restaurant Group at Disney Springs launched the “Seeds for Sustainability” campaign. This aimed to offer plantable drink coasters embedded with wildflower seeds for Earth Month. These coasters, replacing disposable cardboard ones, supported pollinators.
These coasters, made from various materials, are well-suited for bars and restaurant chains, looking to make a statement of sustainability and eco-friendliness.
Several countries are concerned about the waste the hospitality sector produces every year. In scenarios like this, sustainable beverage coasters prove to be a boon for players in the market. These companies also print engaging marketing campaigns on these coasters as customers often take them home. This way, they get to market their product offerings in the most cost-effective way.
Tech-advancements in Coasters to Drive Demand
Hospitality establishments such as hotels, bars, restaurants, casinos, etc., extensively use coasters. They use them to protect surfaces and enhance branding efforts. There are several other purposes, too, for which these coasters are being highly sought after.
For instance, Robiotic, recently, came up with smart coasters that let the bartender know when the customer needs a refill. These coasters use membrane sensors to detect glass levels to notify. At the end of the cycle, these coasters also provide consumption data to beverage vendors.
Several companies have also introduced smart coasters which can predict the contents of the drink. For instance, Laval-based Alco Prevention Canada, a company that specializes in drug testing, recently came up with a new coaster that can detect the presence of date-rape drugs in drinks. They achieved this feat in partnership with a Florida-based company.
E-commerce Proliferation in Developing Countries to Accelerate Market Growth
With the coming of e-commerce platforms, manufacturers, even the smaller ones, are able to reach a wide consumer base very effectively. Consumers also benefit from this as they get to choose from a plethora of coaster options before making the purchase. With international shipping, even brands from across borders can cater to the demands of consumers. This trend is true for countries like India, China, and China, where e-commerce growth has been significant.
Consumer Awareness Regarding the Protection of Furniture Surfaces to Help the Market Grow
Consumers invest significantly in their furniture, as it is bringing a sophisticated look to the overall house. Beverage spills is a significant challenge in maintaining the longevity and attractiveness of these furniture.
To avoid this, consumers often take interest in buying coasters which not only protects their furniture but enhances the overall look of them. Beverage coasters made from wood, or which are handmade are some of the most common ones found in houses. This approach can be observed in regions with particularly high per capita income.
Expanding Hospitality Sector Also Becomes a Major Contributor
The hospitality sector, which witnessed a major blow during the pandemic, is making an outstanding comeback. The sector which was already valued at USD 4.1 trillion in 2022, grew at a CAGR of 7% and has in just one year reached a whopping USD 4.6 trillion. These figures are good news for manufacturers as the sector is the largest consumer of beverage coasters.
Coasters, in the hospitality sector, are used for various purposes, the result of which their demand in this sector is staggering.
| Use | Description |
|---|---|
| Brand Promotion | Custom branding and special offers to engage customers. |
| Customer Experience | Protects surfaces and provides comfort; interactive features like QR codes for menus and promotions. |
| Sustainability Initiatives | Eco-friendly materials and waste reduction through innovative designs. |
| Operational Efficiency | Smart coasters that monitor drink levels and data collection for optimizing inventory. |
| Thematic Decor | Custom designs for events and themes to enhance ambiance. |
| Health and Safety | Maintains cleanliness and hygiene, especially important post-COVID. |
Principal Consultant
Sourcing Sustainable Materials
With consumer expectations for coasters made from biodegradable, recyclable, or compostable materials, rising, it has become very difficult for manufacturers in this industry to source raw materials. This challenge often leads to production halts and, thus, supply delays.
Even if these manufacturers source sustainable raw materials, there is a very high possibility this might increase the overall costs of the product. Beverage coasters, priced above a certain level, lose their appeal to consumers who may not be willing to pay a premium for what they perceive as simple items.
Competition from Cheap Alternatives
The market also competes with alternative products like napkins and drink holders. These products are cheaper, more durable, convenient, and easy to manufacture. In scenarios like this, it is very practical that small to medium-sized establishments may switch to napkins and drink holders from coasters. While these alternatives might not provide the same functional and aesthetic features as a coaster does, financial restrictions alone can play a crucial role here.
Beverage coasters are made from a wide spectrum of materials. On the basis of materials, the market is often segmented into wood, paper, paperboard, tissue paper, foam, glass, and others. Businesses often prefer wooden coasters over other ones as:
Coasters, these days, are not just used for covering beverages anymore. Almost every other establishment is using the space available to them to promote their brand. These coasters allow digital printing, offset printing, flexography printing, Gravure printing, and screen printing. Here, digital printing dominates the industry as it is versatile, cost-effective, and allows for high-quality, detailed designs.
Beverage coaster finds its applications in a wide spectrum of industries such as food service outlets, pubs & lounges, restaurants, hotels, fast food joints, offices, households, and others. Food service outlets account for the largest share as coasters are essential for maintaining cleanliness and enhancing the customer experience.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The following section talks about the region-wise analysis of the beverage coaster market with a focus on prominent countries.
| Countries | CAGR (%) |
|---|---|
| India | 3.1% |
| China | 3.4% |
| United Kingdom | 2.8% |
India is blessed with one of the largest populations of youngsters in the world. This young demographic, thanks to corporatization, has very quickly adopted the Western drinking culture. Bars, discos, casinos, etc., these days, thus, generate an excellent demand for beverage coasters in India.
The hospitality sector in India is also very mature. These establishments are home to a plethora of tourists coming from various countries, which has prompted them to up their standards in terms of service and ambiance. Beverage coasters have, thus, become an essential component in these establishments.
Several companies are involved in the beverage coaster market in India. However, CoasterWorks, EcoCoaster, and CorkCraft are considered the leaders.
China, since the beginning of time, has been known for its handicrafts, which have had a profound impact on various sectors, including the beverage coaster market. Restaurant and bar chains in China, realizing the aesthetics of these handmade coasters have started including them on their tables. This adds a touch of elegance and cultural richness to dining and drinking experiences.
Some of the most prominent companies in China are Zhejiang Huayi Co., Ltd., Shenzhen Yuhong Crafts Co., Ltd., and Beijing Huilong Arts & Crafts Factory.
The drinking culture in the United Kingdom is very rich. On average, in 2022, 48% of adults drank alcohol at least one day each week. These figures are a testament to the deep-rooted social traditions surrounding alcohol consumption.
Not only this, the trend of bar-hopping, home parties, and luxury dining experiences has also prompted coaster manufacturers in the country to produce high-quality coasters. CoasterCraft and EcoDrink Coasters are key players in the beverage coaster market in the United Kingdom.
People in the United States are fond of collecting valuable items for their homes. This is evident in the fact that an average person in the United States spends hefty amounts on his financial income on home décor. Coasters are also an essential component as they elevate the overall aesthetics of the dining room. They can even be placed on personal bars and coffee tables. This tendency of people in the United States has made the country one of the most lucrative markets for beverage coasters.
Over the past few years, there has been a significant rise in the number of indigenous, small brands, manufacturing coasters in South Korea. These brands often draw inspiration from Korea's rich cultural heritage. They incorporate traditional designs, motifs, and materials into their coaster products. This regional knowledge helps them gain leverage over the multinational ones.
These start-ups have also brought customization to their product offerings, which makes them attractive to the younger demographic. Some of these companies are BambooCraft Korea, Hanbok Coasters, and K-Design Coasters.
To stand out in this fierce competition, coaster manufacturers are creating visually appealing coasters that feature unique designs, patterns, and colors. Some of them are also found to be incorporating local cultural elements and artistic styles. This helps them attract consumers looking for distinctive products. Many brands these days are also offering personalized coasters. This allows them to add their own designs, logos, or messages.
While the sustainability trend entered the market a long time ago, several businesses, especially those in underdeveloped parts of the world, still prefer conventional coasters as they are cheaper and more durable. Manufacturers must come up with a solution to capture this consumer segment as well.
Partnering up with local artists or designers can lead to exclusive collections that stand out in the market. This can also help them showcase their work in the most cost-effective way. While there are many brands vying for dominance in the market, KATZ Group holds approximately 70% of the total market share. This can be attributed to their prolonged presence, sustainable manufacturing practices, and global reach in the international marketplace.
The global beverage coaster market is segmented by material type, which includes paper, paperboard, tissue paper, foam, glass, and other materials.
In terms of printing technology, the market is segmented into digital printing, offset printing, flexography printing, gravure printing, screen printing, and other methods such as letterpress.
The beverage coaster market is further segmented by end-use, which includes food service outlets, pubs and lounges, restaurants, hotels, fast food joints, offices, households, and other applications.
The market can be segmented by region, encompassing North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
The market’s value for 2019 was estimated to be USD 1.2 billion.
The market is predicted to reach a size of USD 2.1 billion by 2034.
The market is anticipated to be valued at USD 1.5 billion in 2024.
The market is predicted to witness a CAGR of 3.5% during the forecast period.
India is set to be a promising country, with a CAGR of 3.1% over the next ten years.
Explore Packaging Insights
View Reports
Beverage Coaster Market
