The global neoprene coffee sleeves market is expected to register a market value of US$ 21.6 billion in 2023 and is projected to accumulate a valuation of US$ 35.1 billion by exhibiting a CAGR of 4.9% in the forecast period 2023 to 2033. The neoprene coffee sleeves market registered a growth of 3.5 % CAGR in the historical period 2018 to 2022.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 21.6 billion |
| Projected Market Value in 2033 | US$ 35.1 billion |
| Growth Rate (2023 to 2033) | 4.9% CAGR |
The increasing demand for neoprene coffee sleeves is fuelled by a rising trend in the food industry, especially amongst small eateries and food outlets employing high-quality disposable cups. The rising trend of using disposable cups and spoons instead of plastic ones is further propelling the product demand. The personalization of neoprene sleeves in hotels is projected to open a new door for market expansion in the coming years.
Paper disposable cups are witnessing a high demand currently. This results from a change in the standard of living and a dire need for sanitary beverages. Also, restrictions regarding plastic use are another factor benefiting the market growth.
There are various ongoing campaigns that explain the importance of removing plastics from the surroundings. Due to this, plastic coffee cup sleeves will see a total boycott in the next few years. Thus, this will present new opportunities for the manufacturers to concentrate on neoprene coffee cup sleeves which will prove to be a boon for the industry’s growth.
People are preferring 100% hygiene while traveling, especially in the post-pandemic times. This change in behavior has led to a paradigm shift. Due to this, glass and ceramic cups are being replaced by biodegradable paper coffee cups. This reduces the chances of germs getting transferred from one person to another.
On the other hand, small and medium enterprises do buy or gift things to their employees using customized neoprene sleeves. This helps in the brand advertisement along with imparting a great impression on the employees. Many employees develop an emotional bond with the brand, which helps in making a permanent consumer base. Overall, it’s a win-win situation for workers as well as for the manufacturers.
Along with this, the rapid expansion of developing economies due to globalization, there is a high product demand all over the hospitality sector which is helping the market to grow. Furthermore, the thriving market of tourism is leading to the expansion of various dependent sectors. Similarly, it will benefit the neoprene coffee sleeve market as well.
In addition, inflating the disposable income of people is leading to an increase in spending on quality served food, especially on drinks. During traveling and leisure time, tourists and visitors prefer hygienic food & beverages. With the rising demand for disposable products and consumers are less preferring the use of plastic disposables which is becoming a crucial factor, that will ignite growth in the market, across the globe.
Companies are adopting the practice of branding on coffee cup sleeves; this provides them an edge to promote their brand at a low cost while providing the product with the advantage of long exposure time and wide reach. Also, the printing of QR codes on coffee cup sleeves allows the tracking of user counts which will further spur growth in the market.
There will be a high demand for attractively designed coffee sleeve cups, especially for gifting purposes during the festival season. This will be a new tapping area for companies in the coming years. Consumers are opting for customized cup sleeves for their use rather than regular ones; they are customizing coffee cup sleeves that are made of leather, wool, and other materials.
Apart from this, International regulatory agencies are imposing partial plastics bans. This step will fuel the adoption of disposable cups, which will lead to more demand for neoprene coffee sleeves in the forecast period. The flourishing growth in the tourism sector will enable the local vendors to impress more visitors by employing coffee cup sleeves bearing their trademarks.
Region-wise, the Asia Pacific is expected to dominate the market by accumulating 44% market share by end of the forecast period. The growth is attributed to thriving growth in the food & beverage industry, rising awareness regarding the use of plastic products use, and a strong presence of tourism hotspots.
The market in North America is expected to create substantial growth opportunities for the neoprene coffee sleeves market, which could an attribute to rising product consumption, especially during frequent outings and rising concerns about product hygiene in the region.
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Recent developments and breakthroughs in technology, mergers, acquisitions, collaborations, and partnerships within the companies involved in manufacturing neoprene coffee sleeves are expected to create lucrative opportunities for market growth during the forecast period.
The global neoprene coffee sleeves market is expected to increase at a growth rate of around 4.0% to 5.0% during the forecast period
Revenues in the café and restaurants end-use segment of the neoprene coffee sleeves market grew a robust 4% year over year in 2021. The demand for café and restaurant end-use segments increased by 5% between 2020 and 2021, giving the neoprene coffee sleeves market year-over-year growth of 4.5% in 2021, according to the FMI.
Principal Consultant
The rapid change in the lifestyle of consumers due to economic prosperity has directly influenced the growth of the neoprene coffee sleeves market. Over the period, food and beverage dining and takeaways from cafes, and restaurants have increased the demand for neoprene coffee sleeves which is cylindrical that fit perfectly around the coffee cup.
The neoprene coffee sleeves are made up of polychloroprene which is a synthetic polymer similar to rubber. It acts as a solution for the consumers to enjoy the hot coffee comfortably by keeping their hands cool while holding the hot beverage. Usually, the beverage cups are made up of thin plastic, paper, etc.
which transfers heat easily that helps boost the growth of the neoprene coffee sleeves market. With increasing awareness regarding hygiene and sanitization, consumers have become selective about packaging solutions. The growth of the drive-in orders, and takeaways are fueling the demand in the food & beverage industry which directly affects the neoprene coffee sleeves market.
Many café and restaurant owners rely on double-walled cups for heat protection but this increases the expenditure. Instead, usage of neoprene coffee sleeves has resulted to be proven as a cost-effective solution to reduce heat conduction between the coffee and hands.
They provide a comfortable, durable, and non-slip feel, by providing an additional layer of protection acting as an accessory even during transit. The neoprene coffee sleeves market has a higher density that tends to have a higher potential for transferring heat.
Neoprene coffee sleeve unlike a single time use accessory, can be reused and recycled until the coffee sleeve is torn or externally damaged which attracts the go green consumers. Also, they are light in weight to carry, highly durable and impact resistant which makes them valuable for avoiding any spillage of the drink due to external pressure.
The coffee sleeve also acts as a great advertising opportunity for the brand owners to promote their café, restaurant through an innovative packaging solution since it places the brand in the hands of the consumer. It is expected to drive better results than the traditional billboards, flyers with high recall rates that fuel the sales of the coffee cup impacting the neoprene coffee sleeve market.
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Neoprene coffee shrink is a synthetic rubber that is made up of petroleum feedstock which is expensive in some countries that may negatively impact the cost expenditure and also the market. The availability of substitutes such as silicon rubber, thermoplastic is expected to hinder the growth of the neoprene coffee sleeves market.
Key global players in the neoprene coffee sleeves market are:
Key players in the Asia Pacific region of the neoprene coffee sleeves market are:
The neoprene coffee sleeve market is aided by the food & beverage industry that is growing at a steady pace specifically in the Asia Pacific region such as China and India. The rapid change in the lifestyle habits in the developing countries are contributing towards the growth of the neoprene coffee sleeve market as they are starting to prefer disposable cups rather than glass or ceramic cup specifically during transit.
The presence of the majority of key players in the neoprene coffee sleeve market is high in China which accounts for a major share in manufacturing across the globe. North America, Europe are also anticipated to grow significantly in the neoprene coffee sleeve market as the consumption of on-the-go beverages is accounted to be high in these regions.
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Neoprene Coffee Sleeves Market
