The global bagasse bowls market is expected to rise at a CAGR of ~5.8%, during the forecast period.
The bagasse bowls market is expected to witness a soaring growth in 2021 with revenues up 5.3% each year. A new forecast by FMI estimates that the bagasse bowls profit margin will nearly double between 2021 and 2031. The majority of demand for bagasse bowls is because of their biodegradable nature and minimum carbon footprint generation.
Bagasse bowls are manufactured using the bagasse that is commonly known as sugarcane waste. The bagasse bowls market is witnessing healthy growth in recent years, due to the change in the predicament of people over the negative effect of plastic on the environment. As the raw material used for manufacturing is plant waste, it creates a low carbon footprint in comparison to its plastic counterpart. In addition to all this, bagasse bowls are eco-friendly in nature and completely biodegradable.
Environment conservation authorities and governments are raising restrictions towards plastic being used as disposable tableware, which in turn will increase tremendous opportunities for prominent players in the market. These factors will augment the demand for bagasse bowls in the forecasted period.
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Key changes in environment conservation policies, increasing restrictions on plastic usage, general public becoming aware of their surroundings is causing a drastic shift which is increasing the usage of bagasse bowls in everyday life.
Foodservice providers are changing the trend via shifting towards biodegradable tableware such as wooden cutlery, paper plates and bagasse bowls. Increasing regulations banning plastic usage in food outlets has caused an upshift of change. Manufacturers will see a huge boom in demand for bagasse bowls during the forecast period.
An increase in food takeout and home delivery systems due to the rise of the millennial population and long working hours has resulted in a spike in the usage of biodegradable bagasse bowls. The big change caused due to cultural shift and outdoor eating has increased the usage of eco-friendly tableware which is easy to dispose of.
This change of eating habits not only of the younger generation but across different age groups will exponentially impact the bagasse bowls market in a positive manner.
The demand for eco-friendly and biodegradable solutions for tableware has constructed an optimum path for the bagasse bowls market. The increase in take-out and home delivery facilities in the food & beverage sector are expected to simultaneously impact a positive trend for bagasse bowls in the coming years.
This change is affected due to almost negligible carbon footprint generation from bagasse bowls and their biodegradable nature which in turn will raise the usage of bagasse bowls and this will drive the market growth.
Cheap pricing of plastic ware will always pose a challenge to the bagasse bowls market and the less availability of the product in the market will cause a hindrance in market growth.
However, giving provisions like tax reductions from the government to manufactures will, in turn, raise the production of bagasse bowls and decrease the cost price of a product, which in turn increases profitability for the players in Bagasse Bowls.
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The key competitors implement various strategies such as product launch, merger & acquisition, expansion, innovation and others to survive and compete in the market:
India will hold a major proportion of the bagasse bowls market by the end of the forecast period due to an increasing focus on using biodegradable materials such as bagasse products for the foodservice sector because of its durable, hygienic, safe and eco-friendly nature.
Other factors that will increase the country’s share in the global market will be its new rules and regulations on plastic usage which are focus on reducing non-recyclable plastic packaging. All these factors considered India will have a significant hold in the Bagasse Bowls market in future.
The market has witnessed a halt in trade due to the pandemic caused by the COVID-19 virus outbreak. The supply chain to gather raw material and supply of product was hampered as the restrictions were implemented across the globe. The food services sector generated high demand during a virus outbreak.
The rise in take-out facilities and home delivery systems abruptly increased the usage of bagasse bowls. In totality, the impact of the pandemic on the bagasse bowls market was moderate which successively bounced back by the end of the year 2021.