Paper Cups Market-Forecast(2024 - 2030)

The Paper Cups market size is forecast to reach USD 12.24 billion by 2029, after growing at a CAGR of 4.2% during the forecast period 2024-2029. A paper cup is a disposable made of paper that, once lined with plastic or wax, prevents liquid from leaking out or soaking into the paper. Paper cups are manufactured from a sustainable resource. The cups are supposed to be constructed of food-grade paper, which is hygienic. It is capable of storing both hot and cold liquids for an extended period. Paper cups are used for various purposes. Amid global restrictions on single-use plastics and increased initiatives to remove plastic from packaging, paper-based packaging goods have emerged as a viable replacement. Over the last several years, the food service industry has increasingly used paper cups. The rising popularity of fast-service restaurants in emerging economies, as well as the adoption of a takeaway culture to meet the need for convenience, will increase paper cup demand throughout the projection period.

The report “Paper Cups Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Paper Cups.

By Type: Hot Paper Cups, Cold Paper Cups.

By Wall Type: Single Wall Paper Cups, Double Wall Paper Cups, Triple Wall Paper Cups.

By Coating: PE Coated Paper Cups, PLA Coated Paper Cups, Water Base Barrier Coating.

By End User: Quick Service Restaurants, Offices and Educational Institutions, Residential, and Others.

By Geography:  North America, South America, Europe, APAC, RoW

• In 2023, Consumers in the UK are becoming more and more accustomed to receiving their high-quality coffee in an elegant and useful manner, whether it comes from a self-serve vending machine or a barista. A new Go-Vend hot vending cup design has been introduced by Bunzl Catering Supplies from partner supplier Go-Pak.

• The growth of the food and beverage industry, including coffee shops, cafes, restaurants, and takeaway outlets, presents opportunities for the paper cups market. As the number of food service establishments increases, so does the demand for disposable packaging solutions like paper cups.

• Some of the major food and beverage firms are switching to paper cups because of growing environmental concerns. For instance, In addition to navigating the COVID-19 health issue, Dunkin' has kept pushing important environmental efforts to properly serve people and the environment. IN 2020 Dunkin' announced that all of its locations worldwide had switched from polystyrene foam cups to paper cups. Paper cups with two walls now stand in for the foam ones at Dunkin' Donuts locations around the United States.

Hot Paper Cups dominated the market in 2023. Hot paper cups are extensively used in various settings such as cafes, restaurants, fast-food chains, offices, events, and households. Firstly, the growing customer desire for sustainable and environmentally friendly products has fueled demand for paper hot cups, which are biodegradable and easily recyclable. Growing environmental consciousness, as well as bans on plastic cups in several places, have encouraged market development. Furthermore, the growing food service business, notably the coffee shop culture, has greatly boosted demand for paper hot cups. For instance, The number of coffee shops in the United States has increased by 2.4% over the previous five years, with 65,410 already in operation and 17,537 expected by 2025.

Double Wall Paper Cups occupied a dominant position in the market in 2023. Double wallpaper cups are comprised of two layers of paperboard with an air space between them. This structure makes them solid, durable, and ideal for hot beverages like coffee and tea. It offers superior insulation, keeping hot beverages heated for longer and cold beverages chilled for longer. The growth of the food service industry, including cafes, coffee chains, and restaurants, is fueling demand for disposable packaging solutions like double-wall paper cups. 

As the global food service sector continues to expand, particularly in emerging markets, the market for double wallpaper cups is expected to grow. On March 14, 2024, IMEX Vision announced the launch of Adama, a line of entirely sustainable paper cups for hot and cold beverages in the quick service and takeout categories.  The cups are made with APP Group's (APP) Foopak Bio Natura base paper, which is PFAS-free, curbside recyclable, and compostable. The new product range will include a variety of hot and cold cup sizes in both single and double-wall types, as well as sustainable molded fiber lids.

Quick Service Restaurants occupied a major share of the paper cups market in 2023. Paper cups serve as a valuable marketing tool for QSRs to promote their brand and engage with customers. Custom-printed cups with logos or promotional messages reinforce brand identity and create a memorable experience for consumers, contributing to brand loyalty. 

QSRs serve a large volume of beverages to customers daily, including coffee, tea, soft drinks, and other beverages. As a result, they require a steady supply of disposable cups, including paper cups, to meet the demands of their customers. The global market value of the quick service restaurant (QSR) business is estimated to be $257.9 billion in 2020. The QSR sector is expected to reach a value of $690.80 billion by 2026. Busy lifestyles and the growing preference for convenience have fueled the popularity of QSRs. Consumers often opt for quick and easy meal options offered by QSRs, leading to increased foot traffic and higher beverage sales, driving up the demand for paper cups.

The APAC region in the paper cups market is anticipated to hold a major share during the forecast period (2024-2029). According to the Paper Cup Manufacturer Association Bangladesh (PCMAB), The continuous rise in public awareness of the usage of eco-friendly products has resulted in a more than six-fold increase in the market for single-use paper cups across the nation. After the pandemic, monthly sales of paper cups have increased to almost 20 crore from just 5 crore.

The Asia Pacific region is home to a significant portion of the world's population, including densely populated countries such as China, India, and Japan. Rapid urbanization and changing lifestyles in these countries have led to increased consumption of food and beverages, driving demand for disposable packaging solutions like paper cups.

Many countries in the Asia-Pacific region are implementing regulations to reduce the use of single-use plastics. This has led to a surge in demand for paper cups as a sustainable alternative for serving beverages. For instance, India has announced the ban on single-use plastics enforced on July 1, 2022. With rising awareness about environmental issues like plastic pollution, there's a growing preference for eco-friendly alternatives such as paper cups. Consumers actively seek products that have minimal environmental impact, leading to increased demand for paper cups.

Government policies raise awareness among businesses and consumers about the environmental impact of plastic pollution. This increased awareness fosters a shift in consumer preferences towards eco-friendly alternatives like paper cups. Governments frequently start public awareness campaigns to draw attention to the harm that plastic waste does to the environment. This leads to increased consumer demand for products with paper packaging, seen as a more eco-friendly choice. 

Many governments have implemented bans or restrictions on single-use plastics. These bans create a void that paper packaging can fill, leading to increased demand for paper-based alternatives. For Instance, On January 14, 2022, the Italian Legislative Decree 196/2021 (the "Italian Decree") that implements the Single-Use Plastic Directive ("SUPD") came into effect.

Increased awareness among consumers about the environmental impact of plastic pollution has led to growing demand for sustainable packaging options. Consumers are more likely to choose products packaged in eco-friendly materials like paper cups, driving market demand and encouraging businesses to adopt environmentally responsible practices.

The global coffee culture has experienced tremendous growth in recent years, with an increasing number of coffee shops, cafes, and specialty roasters opening up in urban areas worldwide. These establishments serve a variety of coffee beverages, often in paper cups for takeaway orders. For instance, In 2020, Starbucks had 32,660 stores worldwide, making it the largest coffee shop corporation in the world. 29,324 shops were reported globally in 2018. Starbucks' yearly growth has nearly doubled over the past ten years.

According to the National Coffee Association (NCA), 66% of Americans drink coffee each day, more than any other beverage. This high level of consumption translates to a considerable demand for coffee cups, with paper cups being the primary choice for serving hot beverages like coffee. The global rise of coffee culture, influenced by the proliferation of coffee chains, cafes, and specialty coffee shops, has led to increased consumption of coffee beverages. Consumers, particularly in urban areas, are embracing coffee as a social and cultural phenomenon, fueling the demand for paper cups used for serving coffee.

Many of the chemicals used to impart waterproof properties to paper cups, such as poly-fluoroalkyl substances (PFAS), are persistent in the environment and can accumulate in ecosystems over time. PFAS chemicals have been linked to adverse health effects and environmental contamination, leading to growing concerns among consumers.

In August 2023, A study conducted by the University of Gothenburg and published in the journal Environmental Pollution highlighted the environmental impact of paper cups, particularly when not disposed of properly. One of the primary challenges facing the paper cups market is the issue of sustainability. While paper cups are often perceived as environmentally friendly, they are lined with a thin film of plastic to prevent them from absorbing liquids or disintegrating when hot liquids are poured into them. This plastic lining poses significant environmental concerns, as it can have detrimental effects on aquatic ecosystems.

The University of Gothenburg study focused on the impact of paper cups, especially those not disposed of properly, on aquatic midge larvae. The findings revealed that the plastic lining in paper cups can leach harmful chemicals into the environment, posing a threat to aquatic life.

In 2023, Major players in the paper cups market are Huhtamaki Oyj, Kap Cones Private Limited, Graphic Packaging International, Go-Pak, Dart Container Corporation, Konie Cups International Inc., International Paper Benders Paper Cups, Phoenix Packaging Operations, LLC., Eco-Products Inc. and Others.

 On 8th January 2024, With the announcement of a three-year strategic agreement with H&M Distribution, Go-Pak Group took a significant step towards improving customer service by emphasizing delivery efficiency, strengthening dependability, and aggressively lowering carbon emissions.

 On 14th September 2022, Huhtamaki and Stora Enso introduced The Cup Collective, a brand-new paper cup recycling program. The operation intends to recycle thrown-away paper cups and recover their value on an industrial scale; it is the first of this sort in Europe. The scheme will first be rolled out throughout the Benelux.

 Yogurt in paper cups was unveiled by Chobani in 2021. Cold brew coffee, coffee creamers, and other dairy products like oat milk may now be purchased in paper packaging. The business pledges to continue searching for paper-based plastic packaging substitutes.