Global sales of paper cups are valued at USD 13.8 billion in 2024 and are expected to reach a revenue of USD 21.5 billion in 2034. Revenue is set to increase at a CAGR of 4.5% during the forecast period, from 2024 to 2034. Bulk bag dischargers generated revenue worth USD 13.0 billion in 2023. It is expected to record a Y-o-Y growth of 5.6% in 2024.
Beverages is the dominant segment in paper cups industry with more than 70% value share. All-pervading hot and cold drinking habits for beverages, which include coffee, tea, and soft drinks, have been reported, mainly within the emerging culture of takeaways and being on the go.
Disposable cups are an absolute necessity for cafes, restaurants, and food delivery services, which is a result of an increased desire for quicker servings of beverages, especially within an urban setting. Environmental factors have also resulted in a shift towards paper cups instead of plastic cups for hot beverages. Consequently, the paper cup market relies highly on beverages and is the largest and most stable segment of paper cups.
Global Paper Cups Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 13.0 billion |
| Estimated Size, 2024 | USD 13.8 billion |
| Projected Size, 2034 | USD 21.5 billion |
| Value-based CAGR (2024 to 2034) | 4.5% |
The commercial segment is leading in the paper cup market with a value share of more than 63%. This is primarily because of their heavy usage in cafes, restaurants, hotels, and fast-food chains. As there has been a huge growth in take-away of beverage and food delivery services, the need for disposable cups has grown massive in a very short period.
The other large consumers are big events, corporate offices, and catering services. Because of increasing pressures on companies to find more environmentally friendly packaging solutions, demand from the commercial world for paper cups will continue to remain strong and secure the material's position at the top of its own league.
The paper cups industry could possibly see encouraging growth in the forecast period. It is estimated to present an incremental opportunity of USD 8.4 billion and is expected to surge 1.6 times the current market value through 2034.
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The above table presents the expected CAGR for the global paper cups market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.7%, followed by a slightly low growth rate of 4.4% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.7% (2023 to 2033) |
| H2 | 4.4% (2023 to 2033) |
| H1 | 4.3% (2024 to 2034) |
| H2 | 4.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.3% in the first half and remain relatively moderate at 4.8% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed a increase of 50 BPS.
Installation of Vending Machines at Numerous Locations to Propel Sales of Paper Cups
It is tough and nearly impossible for retailers and brand owners to have a corporal store in every place that generates high demand for beverages. One of the most commonly used methods adopted by brand owners to solve this problem is vending machines. The popularity of vending machines is hence increasing the sales of paper cups, as during the process, disposable cups are required.
In public places, there is less possibility of cleaning these cups and reusing them to avoid the adoption of single-use paper cups. Since vending machines are gradually becoming technologically advanced in terms of user experience, they are expected to gain high traction in numerous regions such as North America, Europe, and Asia Pacific.
The introduction of smart interaction options in new systems has effectively increased consumer trust. Manufacturers of different paper cups, such as paper teacups, paper coffee cups, and cupcake paper cups, are aware of this transition and are currently focusing on enhancing their production infrastructure and capacity to meet the burgeoning demand.
Focus on easy and convenient drinking methods will primarily boost the market for paper cups in the next ten years.
Emphasis on the Growing On-the-go Beverage Consumption across the Globe
The opportunities created by ‘away-from-home’ consumption of beverages are larger than most people would like to think. Fast-paced lifestyle has influenced the food and beverage consumption patterns of consumers to an extent, wherein, a study found that, an average American experiences nearly 22 away-from-home situations where he/she buys food/drinks.
This creates lucrative opportunities for the growth of the paper cups market, which manufacturers must focus on. In the coming years, the focus of manufacturers on the millennial population is likely to intensify.
The growing millennial population is expected to be a key driver to the growth of the global paper cups market, as millennial have been known to experience nearly twice the number of away-from-home situations as compared to adults. To expand their businesses, manufacturers of paper cups must know what the modern consumer wants, and anticipate how their preferences may change over time.
Manufacturers of paper cups are expected to focus more on the design and appearance of their products, to target specific consumers. For instance, high-quality printing on paper cups has a high consumer appeal.
Increasing Intolerance in Several Countries against the Use of Single-use Plastic Products
Plastic takes hundreds of years to recycle and therefore, is not favoured by many countries and organizations. In fact, BBC has plans to ban all single-use plastics by the end of 2020. In the last few years, there has been a prominent increase in awareness regarding environmental issues associated with disposable coffee cups, especially those lined with Polyethylene.
In 2016, France became the first country in the world to put a complete ban on disposable plastic cups and plates. According to a new French law, 50% of all disposable tableware must consist of biologically sourced materials, which can be composted at home. This law will be implemented from 2020. While many have supported this transition, several associations, such as Pack2GoEurope, believe that it violates EU laws on free movement of goods.
Principal Consultant
The global paper cups industry recorded a CAGR of 2.8% during the historical period between 2019 and 2023. The growth of paper cups industry was positive as it reached a value of USD 13.0 billion in 2023 from USD 11.7 billion in 2019.
The global paper cups market, in historic period, increased with an increasing number of consumers opting for a good ecological alternative to plastic. The tendency was further supported by rising environmental awareness and a tight approach from the side of governments toward plastic waste reduction.
Another push for demand in the disposable cups came from the food delivery sector. Following the pandemonium, more reliance on the same has been found among quick-service restaurants, cafes, and roadside food stalls, especially in urban cities. There were some challenges, however, which the industry faced largely in the form of fluctuation in the raw material prices, mainly paper pulp.
The critical one was deforestation. Innovation in sustainable sourcing as well as recycling techniques helped mitigate these issues. Consumer expectation for sustainable packaging solutions also prompted companies to focus on biodegradable and compostable variants and widen the product range.
Going forward, paper cups market is going to further go upwards. Demand for sustainable products is going to increase furthermore with stringent global environmental regulations and corporates compelled further to enforce green practices. Takeaway culture will also expand in developing economies, including India and Southeast Asia.
Additionally, investments in advanced materials such as plant-based and recyclable coatings are also on the rise, poised to enhance the performance of paper cups, making them more desirable to consumers and businesses. The companies are also anticipated to invest in improving recycling infrastructure to minimize the carbon footprint of disposable cups.
The forecast period would be more competitive as new entrants and existing players innovate to capture a higher share of the market. Further, consumer preferences are changing, and along with this change is the fact that technological ones will make the industry practice more sustainable. Another key factor will be partnerships between manufacturers and recycling firms in order to reduce the waste.
Tier 1 companies include market leaders that correspond capturing significant market share between more than 10-15% in the global market. High production capacity and a wide product portfolio characterize these market-leading firms. These players are characterized by substantial manufacturing experience concerning a range of products for different applications and geographic penetration, backed by a strong consumer base.
These companies manufacturing the products have products on offer with a wide range and with state-of-the-art technological innovations, coupled with adherence to regulatory imperatives that offer nothing but the best quality. Tier 1 prominent companies include Huhtamaki Oyj, WestRock Company, Dart Container Corporation, and International Paper Industries etc., which contributes more than USD 300 million of revenue.
The companies in Tier 2 include mid-size players present in specific regions, and highly influencing the regional market contribute 8 to 10%. Such players are characterized by a limited international presence and well-maintained market knowledge. In the case of such market players, the technology is good, and the regulatory compliance is ensured, though advanced technology with wide global reach may not be there.
While other prominent companies in tier 2 include Nippon Paper Industries, Pactiv Evergreen Inc (Pactiv LLC), Georgia-Pacific LLC, etc. contributing USD 100 to 300 millon.
The rest are very small companies operating at the local presence and serving niche markets having revenue in few billion. These companies are notably oriented to the fulfillment of local market demands and are consequently classified within the tier 3 share segment. They are players on a very small scale, and have very limited geographical reach.
Within this context, Tier 3 contributing less than 100 million can be described as an unorganized market-a generic term applied to that part of the industry, which has less structure, and formalization compared to the organized competitors.
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The section below covers the industry analysis of the paper cups market for different countries.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.1% |
| Germany | 1.5% |
| UK | 1.8% |
| Brazil | 4.0% |
| India | 5.2% |
| China | 4.5% |
| Japan | 3.0% |
| GCC Countries | 4.3% |
| Canada | 3.3% |
The United Kingdom is projected to create an incremental growth opportunity of USD 136.8 million during the forecast period. Increasing consumption of coffee, which is considered to be one of the most popular beverages in the country, is projected to drive sales of paper cups.
As per data provided by the British Coffee Association, the consumption of coffee per day in the United Kingdom is USD 98 million cups each day, whereas 70% of British consumers drink at least two cups of coffee per day. Coffee consumption is eventually expected to impact the global market for paper cups as the beverage is served either in small units or through vending machines.
Paper cups are required to serve and drink coffee. This is likely to propel the rate of coffee consumption, thereby pushing sales in the United Kingdom.
During the forecast period, India is expected to reach USD 1,009.1 million. India's paper industry is growing as a result of the low cost of its raw resources. With economic growth, a significant increase in paper consumption is projected.
The paper industry in India produced about 5% of the world's paper and estimated turnover of the industry is over USD 9.5 billion, according to figures from the Indian Paper Manufacturers Association (IPMA). In the next ten years, it is anticipated that the country's growing paper sector will dominate the paper cup industry.
The section contains information about the leading segments in the industry.
| Application | Hot Beverage |
|---|---|
| FCAGR | 4.1% |
The on-going growing demand for tea and coffee, today, is greatly contributing to the growth of the sales of disposable cups for hot beverages. The upswing in the on-the-go lifestyle, café culture, and the growth of takeaway and delivery segments have triggered the requirement for single-use cups, convenient in nature.
Furthermore, the sustainability trend has resulted in an upsurge in paper cups, a more eco-friendly alternative to plastic. The customizing aspect for branding and hygiene especially after the pandemic will enhance their usage.
As consumption of coffee and tea is going to move upwards in the coming days all over the world, disposable cups will always be in demand. The targeted segment is predicted to hold around 65% of the market share in beverages application.
| End Use | Food Service |
|---|---|
| FCAGR | 4.0% |
The food service segment is expected to record a CAGR of 4.0% during the forecast period. Manufacturers are concentrating on expanding their ranges of paper cups to fulfill high demand from on-the-go consumers. They are also focusing on making unique designs to enable optimal consumer convenience.
Online food service platforms are gaining the attention of consumers, and food services are hence providing single-use cups, bowls, and plates for use. There is improved production of to-go paper cups, especially for beverages such as coffee. In terms of sales, Burger King, Subway, Starbucks McDonald’s, and Taco Bell are the leading five quick service restaurants.
McDonald’s is a leading brand that adapts the use of paper cups and other products. As per the reports, McDonald’s 71% of its packaging is made from paper and Starbucks reported that 47% of its packaging is fiber-based. The idea is to ensure a high degree of consumer convenience in line with the needs of modern consumers, which will positively drive the paper cups market.
The competition in the paper cups market is extremely tight, with the top three players like Huhtamaki, Dart Container, and Georgia-Pacific leading markets with innovation in their products and eco-friendly packaging.
Companies of smaller sizes are growing rapidly as well by offering compostable or biodegradable ones. Customization and branding to cafes and restaurants are other areas of competition. Sustainability and pricing remain high factors for changing dynamics in the market.
Recent Industry Developments in Paper Cups Market
In terms of capacity, the industry is divided into 4 oz, 8 oz, 12 oz, 16 oz, 20 oz, and other capacities. All capacities are classified as single wall, double wall, and ripple wall.
In terms of material, the industry is segregated as paperboard, kraft paper, and molded fiber.
The industry is classified by coating as PE coating, PLA, water based barrier, and bio based.
The industry is classified by distribution channel as direct sales, retail, distributors, and online. Retail is classified as hypermarket, supermarket, convenience, and specialty store.
The industry is classified by application as beverages, and food. Beverage is classified as cold and hot. Food is classified as spreads, sausages, dressings, confectionary, and dairy. Dairy is further classified as ice cream, yogurt, and drinks.
The industry is classified by end use as commercial use, institutional use, and household use. Commercial use is classified as hotels & café, full service, restaurants, quick service, restaurants, venue catering, mobile food vendors, and bakery and Patisserie. Institutional use is classified as school, college, office, hospitals, airports, railways.
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global paper cups industry is projected to witness CAGR of 4.5% between 2024 and 2034.
The global paper cups industry stood at USD 13 billion in 2023.
The global paper cups industry is anticipated to reach USD 21.5 billion by 2034 end.
Western Europe is set to record the highest CAGR of 2.9% in the assessment period.
The key players operating in the global paper cups industry include Huhtamaki Oyj, WestRock Company, Dart Container Corporation, International Paper Industries etc.
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