The global paper cups market size was valued at US$ 5.5 billion in 2020 and expected to reach US$ 9.2 billion by 2030, poised to grow at a noteworthy compound annual growth rate (CAGR) of 4.4% from 2021 to 2030.
The global paper cups market is primarily driven by several factors such as rising trend of on-the-go consumption, growing plastics waste, rising consumption of soft drinks, growing penetration of quick service restaurants and cafes, and growing popularity of take-away services in the food and beverages sector. Paper cups are disposable in nature and is often coated with plastic and wax that prevents paper from soaking or prevents leakage and maintains the taste and aroma of the beverage. The rising usage of paper cups in the beverages industry for serving tea and coffee is significantly fostering the growth of the market across the globe. The high consumption of paper cups is majorly driven by the growing number of quick service restaurants across various regions.
The consumers prefer these disposable paper cups owing to the hygiene factor associated with it, easy disposal of paper cups, and rising number of on-the-go consumers across the globe. The rise in the number of employment resulted in busy and hectic lifestyle of the consumers. The busy schedule of the consumers propels them to opt for on-the-go consumption that allows them to save time. This is a major factor that fuels the demand for the paper cups among the global consumers. Further, the rapid growth of the online food delivery and take away services has fostered the demand for the paper cups that allows the seller the perfect and economical beverage packaging solutions. Therefore, the rising popularity of the food delivery services is expected to dive the growth of the market during the forecast period.
The rising demand for the bio-degradable paper cups is expected to drive the global paper cups industry in the forthcoming years. The conventional paper cups are generally coated with plastic. The associated problem with the industrial decomposing of synthetic polymer is a significant factor accountable for the increasing demand for the bio-degradable paper cups. Bio-degradable paper cups provides 100% eco-friendly solutions for beverage packaging and has a huge demand in the developed regions like North America and Europe owing to the increased awareness among the population regarding the negative impacts of plastic on the environment. Therefore, the growing demand for the bio-degradable paper cups is expected to propel the market growth in the foreseeable future.
Report Scope of the Paper Cups Market
|Market Size in 2020||US$ 5.5 Billion|
|Growth Rate||CAGR of 4.4% from 2021 to 2030|
|Revenue Projection||USD 9.2 Billion by 2030|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2021 to 2030|
|Segments Covered||Type, Wall Type, End User, Region|
|Companies Mentioned||Kap Cones Pvt. Ltd., International Paper Company, Huhtamaki Oyj, Phoenix Packaging Operations, LLC., Dart Container Corporation, Benders Paper Cups, Shanghai Xinyu Paper Cup Co. Ltd., Konie Cups International, Eco-Products Inc., DongyangKangbao Paper Cups Co. Ltd.|
By type, the hot paper cups segment led the global paper cups market with remarkable revenue share in 2020 and is anticipated to retain its dominance throughout the forecast period. This is attributed to the higher consumption of hot beverages among the global population. Further, the quick service restaurants and smaller beverage serving shops extensively use paper cups to serve hot tea and coffee, owing to its cheaper price and convenience associated with the use of paper cups.
On the other hand, the cold paper cups is estimated to be the most opportunistic market during the forecast period. This can be attributed to the rising popularity of on-the-go consumption of soft drinks, juices, and cold coffee among the busy consumers.
Wall Type Insights
By type, the double walled segment led the global paper cups market with remarkable revenue share in 2020 and is anticipated to retain its dominance throughout the forecast period. The double walled cup has two walls of paper with air pocket in between that facilitates comfortable holding when serving hot beverages like tea and coffee. Therefore, double walled is extensively used for serving hot beverages and the increased consumption of hot beverages is driving the demand for the double walled paper cups.
On the other hand, the single walled segment is expected to grow at a sustainable rate. Single walled paper cups are commonly used for serving and storing both hot and cold beverages across the globe.
By end-user, the commercial segment led the global paper cups market with remarkable revenue share in 2020 and is anticipated to retain its dominance throughout the forecast period. This is significantly attributed to the increased penetration of quick service restaurants and popular coffee chains across the globe. These two commercial spaces are the highest consumer of paper cups.
On the other hand, the industrial segment is growing at a considerable pace owing to the increasing adoption of disposable paper cups in schools, colleges, and other institutions for serving water and other beverages is a major driver of this segment.
Based on the region, Asia Pacific dominated the global paper cups market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period.This is attributable to the factors such as changing food habits of the consumers, rising urban population, and rising penetration of commercial spaces like quick service restaurants, coffee chains, fast casual restaurants, and rapidly growing food and beverages industry in the region. Asia Pacific is characterized by huge population, rising disposable income, and increased demand for various food and beverages products. This is the primary driver of the paper cups market in the region.
On the other hand, North America is estimated to grow at a sustainable rate over the forecast period. The growing awareness regarding hygienic food habits, increased awareness regarding environmental problems, and increased on-the-go consumption of beverage such as cold coffee, juices, and carbonated drinks are the major factors that are accountable for the growth of the paper cups market in North America.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In July 2019, Huhtamaki Oyj introduced a compostable double walled hot paper cup under its Bioware range. It provides a pure sustainable and compostable paper cup solution to the environment conscious consumers.
The various developmental strategies undertaken by various market players increases competition and contributes significantly towards the development of paper cups market.
Some of the prominent players in the paper cups market include:
By Wall Type
By End User
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