The global recyclable cups market is estimated to account for USD 578 million in 2024. It is anticipated to grow at a CAGR of 5.3% during the assessment period and reach a value of USD 974.2 million by 2034.
| Attributes | Description |
|---|---|
| Estimated Global Recyclable Cups Market Size (2024E) | USD 578 million |
| Projected Global Recyclable Cups Market Value (2034F) | USD 974.2 million |
| Value-based CAGR (2024 to 2034) | 5.3% |
Businesses all over the world are taking efforts to lower their carbon footprint. With the sustainability drive becoming more prominent, brands, especially those in the food and beverage sector, are increasingly turning toward recyclable cups. These cups not only help companies reduce their environmental impact but also improve their brand image. The demand for these cups is increasing as these companies are educating their customers about the benefits of using recyclable cups.
Event organizers and catering businesses have also become some of the largest consumers of these cups. These firms utilize recyclable cups at festivals, concerts, and sporting events to minimize waste. A significant number of participants also promote their sustainability initiatives using these platforms. For instance, in 2022, Live Nation Entertainment, announced that it will be using recyclable cups to reduce waste at its venues and festivals. The entity partnered with Turn Systems for this green initiative.
Even the hospitality sector is using these cups in dining areas, bars, and room service. By doing so, they are able to successfully cater to the demands of eco-conscious businesses and visitors. For instance, in 2024, the Napili Kai Beach Resort in Maui made headlines by becoming the first hotel in Hawaii to introduce fully compostable ‘Naked Cups’. This bold move was in accordance with the state's efforts to reduce plastic waste.
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The table exhibits the estimated CAGR for the global recyclable cups market over semi-annual periods between 2023 and 2024. The analysis provides organizations with a better understanding of the growth over the year by divulging crucial shifts in performance and growth patterns. The first half (H1) of 2023 spans from January to June. The second half (H2) includes July to December.
Figures presented in the below table exhibit the growth rate for each half from 2023 to 2024. The market is anticipated to grow at a CAGR of 5% in the first half (H1) of 2023. The second half of the same year is estimated to witness a surge in the CAGR at 5.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 5% (2023 to 2033) |
| H2 | 5.5% (2023 to 2033) |
| H1 | 5.3% (2024 to 2034) |
| H2 | 4.9% (2024 to 2034) |
Moving in the following period, from H1 2024 to H2 2034, the CAGR is projected to dip to 5.3% in the first half (H1) and then fall to 4.9% in the second half (H2).
From Stadium to Cafes: Corporations to Opt for Recyclable Cups for Sustainable Future
Several corporations, especially in developed economies, are making a switch to recyclable cups in an attempt to seek alternatives to single-use plastics. With an increasing interest in sustainable options, brands are investing a significant amount of their financial capital in these efforts.
For instance, in 2024, Ball Corporation, announced that it is aiming to expand its aluminum cups business from stadiums to food service and hospitality venues. Meant to be sturdier than plastic, the cups can be rinsed and re-used and recycled. They also expanded the line to five different sizes to accommodate various consumer needs.
Disposable Cups Made from Novel Materials to Gain Impetus
As the general populace gets more environmentally aware, brands are coming up with new ways to fulfil their demands. Players in the industry are experimenting with various materials like biodegradable plastics, plant-based materials, and recycled fibers to create disposable cups that minimize environmental impact.
GaeaStar, a start-up based in San Francisco and Germany, has recently introduced its 3D-printed, disposable clay cups to the United States. These cups are made from dirt, salt and a small amount of water. These terracotta cups, also known as ‘Kullads’ in India, get decomposed easily and can be again used to make cups.
Factors Slowing Down the Market Growth
Principal Consultant
The global recyclable cups industry was valued at USD 477.6 million in 2019. It grew at a CAGR of 4.1% during the historical period to reach a size of USD 561.4 million in 2023.
The market for recyclable cups in the last few years has not been that stable. The recent pandemic has a significant role in this. With several governments announcing strict lockdowns, many venues and restaurants had to temporarily shut down. These entities are the largest consumers of disposable cups.
However, it was also during this period that people become more aware of their personal hygiene. They prioritized health over sustainability. This led to a significant drop in demand. Companies, thus, struggled to maintain production levels. Another reason for this plunge in demand was trade restrictions and supply chain disruptions caused by the pandemic.
By the second wave, the market began to recover. As restrictions eased and trade bans uplifted, venues reopened with safety measures. Many businesses sought sustainable solutions to rebuild their image. Eco-friendly cups gained renewed interest among consumers and brands launched marketing campaigns highlighting eco-friendly practices.
During the third phase, the market showed strong growth. Consumer preferences shifted significantly towards sustainability as many people became more environmentally conscious during the pandemic. Responding to this, businesses increasingly adopted eco-friendly practices to attract customers.
Well-established players in the market have a vast consumer base. This is because of their prolonged presence and a vast consumer base which is spread across continents. These companies also make use of their enormous financial resources to carry out research and development activities. Some of these companies, thus, are able to bring regular updates in the market.
Companies in the second tier are the ones whose consumer base is restricted to a specific country or a region. These companies tie-up with local event organizing companies so that they can provide their cups to events and venues within their geographical area. This strategy helps them build strong relationships with local businesses.
Companies in the third tier usually are local companies. These companies have a very restricted consumer base, which allows them to provide excellent and fast-paced services. Their close relationships with local clients foster trust and loyalty. This can lead to repeat business and positive word-of-mouth referrals.
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The below section provides companies with an overview of the industry. It comprises a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the industry dynamics is estimated to help businesses understand the industry's complex nature.
India is estimated to dominate the country-wise growth in the industry during the forecast period with a predicted CAGR of 5.5%. China, Thailand, and South Korea are projected to follow behind India to become the key countries in the industry with anticipated CAGRs of 5.2%, 4.8%, and 2.8% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 5.5% |
| China | 5.2% |
| Thailand | 4.8% |
| South Korea | 2.8% |
| The United States | 3.1% |
India is poised to emerge as the dominating country in the recyclable cups market over the assessment period with a CAGR of 5.5%.
India in the past few years has been struggling with water-logged urban areas due to unorganized plastic waste. Hence, the government has banned the use of single-use plastic in many parts of the country. This has compelled a majority of companies, especially in the food and beverage sector, to switch to recyclable containers and cups.
For instance, Tea Time Group, India's largest network of tea franchise outlets, recently launched 100% biodegradable paper cups at the Nationwide Awards 2021 in Hyderabad. These cups are CIPET certified and made with plant-based films, ensuring they are eco-friendly and safe.
The recyclable cups market in China is estimated to grow at a CAGR of 5.2% from 2024 to 2034.
China, home to one of the largest populations, has become a lucrative hub for key players in the food and beverage industry. Restaurants, food chains, eateries, coffee outlets, etc., have already started introducing recyclable cups in their businesses to stand out. This has put China among the leaders in the industry.
The exposure to international brands and their sustainability goals have also inspired those in China to adopt these cups instead of the conventional ones.
The United States recyclable cups market is anticipated to grow at a CAGR of 3.1% during the forecast period.
The United States has always been a frontrunner when it comes to sustainability. This is due to its eco-conscious consumer base and strict regulations imposed by the government in several states. A significant number of companies, in the country have, thus, introduced these disposable cups in their product lines so that they cater to the demands of these consumers while enhancing their brand image.
For instance, McDonald's, recently, announced the introduction of four-flap cups for its Mini McFlurry, in the United States. This initiative aligns with the company's goal of using 100% renewable, recycled, or certified materials for primary guest packaging by the end of 2025. The four-flap cups, already in use in Canada and Indonesia, aim to improve sustainability while offering consumers a smaller, more manageable portion of the treat.
The section offers companies with insightful data and analysis of the two leading segments. Segmentation of these categories is predicted to help organizations understand the dynamics of the industry and invest in beneficial zones.
Plastic is predicted to emerge as a dominating material with a value share of 57.2% in 2024. In terms of end use, the commercial sector is estimated to lead with a value share of 51.9% in the same year.
On the basis of materials, the market is segmented into paper, plastic, polypropylene (PP), polyethylene terephthalate (PET), polyethylene (PE), polylactic acid (PLA), other plastics, bamboo, glass, and metal. Among these, plastic holds a majority share of 57.2%, as of 2024.
| Segment | Plastic (Material) |
|---|---|
| Value Share (2024) | 57.2% |
The demand for recyclable plastic cups has skyrocketed in the past few years. This is due to their ability to offer convenience for both consumers and businesses. These cups are lightweight, durable, and often less expensive than alternatives like glass or ceramic. This makes them ideal for events, parties, and takeout services.
Also, these cups are designed to minimize waste. They can be processed and reused, reducing the amount of plastic that ends up in landfills.
The end-use segmentation of the recyclable cups market includes commercial, household, and institutional use. Among these, the commercial segment accounts for 28.2% market share.
| Segment | Commercial (End Use) |
|---|---|
| Value Share (2024) | 28.2% |
Commercial spaces such as hotels and cafes are now actively looking for ways to make their service less harmful to the environment. This has generated an excellent demand for disposable cups. Apart from this, mobile food vendors and event organizers are also making use of these cups to adhere to their sustainability goals.
When compared to household and institutional uses, there is an observed dominance of these organizations. This is because of the limited awareness of the benefits of these cups in the underdeveloped and rural parts of the world.
The competition in this market is cut-throat. Companies in this market, especially the ones with a strong foothold, are focusing on innovation. Cups made from plant-based or recycled materials are their flagship product offerings. While sustainable cups are in the trend, end-users are shying away from using them due to their costs.
Some of the prominent companies in the market are Huhtamaki Oyj, Detmold Group, WestRock Company, and Dart Container Corporation
Industry Updates
The market includes a variety of materials such as paper, plastic, polypropylene (PP), polyethylene terephthalate (PET), polyethylene (PE), polylactic acid (PLA), other plastics, bamboo, glass, and metal.
Recyclable cups are available in various capacities, categorized as follows: up to 7 oz., 8 to 14 oz., 15 to 20 oz., and above 20 oz.
The end-use segmentation of the recyclable cups market includes commercial applications such as hotels and cafes, full-service restaurants, quick-service restaurants, venues and catering, and mobile food vendors. Additionally, there is a significant demand in institutional settings, including schools and colleges, offices, hospitals, and airports and railways.
The industry is spread across North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
The market is estimated to reach USD 578.9 million in 2024.
The market is predicted to reach a size of USD 974.2 million by 2034.
Huhtamaki Oyj, Detmold Group, WestRock Company, and Dart Container Corporation.
It is predicted to witness a CAGR of 5.3% during the forecast period.
India is projected to dominate with a CAGR of 5.5% during the assessment period.
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Recyclable Cups Market
