The cup sleeves market is projected to grow from USD 347 million in 2025 to USD 519.1 million by 2035, registering a CAGR of 4% during the forecast period. Sales in 2024 reached USD 333.1 million, reflecting steady demand driven by rising consumption of on-the-go beverages and growing focus on sustainable packaging.
This growth is driven by increasing consumer demand for takeaway beverages, the expansion of the food service industry, and a heightened focus on sustainable packaging solutions. The proliferation of coffee shops, quick-service restaurants, and food delivery services has led to a surge in on-the-go beverage consumption, thereby boosting the demand for cup sleeves.
In response to the escalating demand for sustainable packaging, leading companies are investing in eco-friendly cup sleeve solutions. The Beekman Group announced that an affiliate of Beekman Investment Partners II, LP completed the divestiture of BriteVision, the custom print and paper cup sleeve division of MesmerizeMedia LLC, to Vidya Brands Group, a family of companies that specialize in packaging, printing, and converting products for small to midsize growth-oriented enterprises.
Michael Ellis, President and COO of Mesmerize stated, “Vidya Brands Group is the ideal partner for the next chapter of BriteVision’s growth. Vidya has a strong track record in the packaging business, and we look forward to seeing the division’s future success.”
The cup sleeves market is witnessing a shift towards sustainable and innovative solutions. Manufacturers are focusing on developing cup sleeves using biodegradable and recyclable materials to reduce environmental impact.
Innovations such as heat-sensitive indicators and smart QR-coded sleeves are emerging, enhancing user experience and offering interactive branding opportunities. These advancements align with the growing consumer preference for eco-friendly and functional packaging.
Looking ahead, the cup sleeves market is poised for sustained growth, driven by the increasing demand for sustainable packaging and the expansion of the food and beverage industry. Companies that invest in eco-friendly materials, innovative designs, and customization are likely to gain a competitive edge. As environmental regulations become more stringent and consumer awareness of sustainability grows, the adoption of compostable and recyclable cup sleeves is expected to become a standard in the industry.
Paper and paperboard materials are set to lead the cup sleeves market by 2025, accounting for an estimated 56.4% market share, as brands and consumers continue to shift toward eco-conscious packaging solutions. These sleeves are widely used by cafés, QSR chains, and beverage retailers for hot drinks like coffee and tea, offering effective insulation and a tactile, organic feel that complements both artisan and branded beverage offerings.
One of the biggest advantages of paper and paperboard sleeves lies in their ability to support high-quality printing, which enables impactful branding, promotional messaging, and personalized designs. Their recyclability and composability make them a strong choice for businesses looking to align with environmental regulations and meet sustainability goals without sacrificing functionality or cost-efficiency.
With many suppliers now offering sleeves made from recycled content or certified paper sources (such as FSC or PEFC), paperboard sleeves are emerging as a low-impact, high-visibility packaging option. Their wide availability, ease of customization, and compatibility with automated sleeve dispensers further enhance operational efficiency for foodservice providers.
As the demand for disposable yet sustainable beverage accessories grows, paper and paperboard cup sleeves are expected to retain their dominance in both premium and high-volume service environments.
Protective sleeves are expected to be the top-performing product type in the cup sleeves market, with a projected 61.2% market share in 2025, owing to their seamless combination of protective utility and high-impact visual design.
These sleeves conform tightly to the shape of the cup using heat application, delivering a polished and tamper-evident fit that enhances both aesthetics and consumer trust. Used extensively in ready-to-drink beverages, retail promotions, and cold drink packaging, protective sleeves allow for full-body, 360-degree graphic coverage making them a favored choice for brands seeking shelf distinction. They also offer superior moisture resistance and durability, particularly in refrigerated or mobile service environments where conventional paper sleeves may degrade.
Manufacturers are increasingly integrating protective sleeves with recyclable materials and eco-friendly inks to balance performance with sustainability. Additionally, tamper-evident features like perforation lines and sealed edges are now standard, providing added safety assurance in both commercial retail and takeaway formats.
From functional protection to marketing versatility, protective sleeves serve as a high-value packaging component that supports brand identity, compliance, and convenience. As beverage packaging continues to evolve toward experiential and secure design, protective sleeves are set to remain the preferred solution for premium and fast-moving beverage brands worldwide.
Challenges
Sustainability and Environmental Regulations
As awareness of environmental conservation continues to rise globally, the cups sleeves market will come under increased pressure to decrease the usage of non-recyclable materials. Most conventional cup sleeves are made from polyethylene-coated paper or foam that are hard to recycle and go to landfills.
Stringent regulatory environment against single-use plastics and non-biodegradable packaging materials by governments and environmental organizations make compliance challenging for manufacturers. To do so, they will need to invest in alternatives for example, recycled paper, plant-based fibers, and compostable coatings that provide heat insulation and durability.
Opportunities
Growth in Customization and Branding
Takeaway culture, the online food delivery trend, and the growing consumption of specialty coffee are presenting new and monetarily attractive opportunities for sleeve cup printing. Cup sleeves have become more than just a practical accessory for businesses. Digital printing, augmented reality (AR) features, and eco-friendly inks for personalized cup sleeves take brand visibility and customer experience to the next level. Organizations that adopt these brand management approaches will have a greater competitive advantage in the ever-expanding food and beverage sector.
The United States cup sleeves market is witnessing steady growth, owing to the rising demand in sustainable and customized solutions for packaging. Thanks in part to the growing trend of takeaway drinks from such establishments as coffee shops, quick-service restaurants (QSRs), and convenience stores, cup sleeves have become a must-have accessory for hot beverages.
The gradual transition towards emerged as a major growth driver as biodegradable and recyclable cup sleeves become increasingly prevalent. Marketing plays a role too, with chains using personalized and themed cup sleeves for branding and advertising purposes in the country.
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 3.6% |
The cup sleeves market is growing in the United Kingdom owing to a robust coffee culture and heightened adoption of eco-friendly packaging on the regional front. From major coffee chains to independent cafés, everyone is adopting compostable paper cups and recycled paper cup sleeves to avoid regulatory fines, avoid sustainability-conscious customers, or both.
The portable cup holders is a new trend in the market and has been spurred by environmental awareness campaigns. In addition, beverage brands use seasonal and promotional cup sleeve designs to increase customer engagement and boost sales.
| Country | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 3.4% |
Germany, France, and Italy are among the leading countries in both the demand and supply for cup sleeves in the European region. The region is also enforcing stricter sustainability regulations, encouraging the use of compostable and non-plastic materials for the cup sleeves. The growing prevalence of specialty coffee cafes and takeaway beverage service also drive the market.
The sale of premium and artistic cup sleeves that cafés and restaurants use as a branding tool also contributes to sales. Additionally, on account of the rising adoption of reusable and fabric-based cup sleeves, especially in the urban areas, the growth trends of the market will be further influenced.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 3.5% |
The cup sleeves market in Japan exhibits slow growth due to tea and coffee consumption in the country. The market is seeing a rise in popularity for sleek, quality, and innovative cup sleeve designs, especially in upscale coffee shops and tea houses.
In Japan, eco-friendly initiatives are also driving companies to switch to biodegradable packing materials including cup sleeves. That demand is bolstered by the trend of brands and artists teaming up to create limited-edition cup sleeves.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 3.6% |
The market for cup sleeves in South Korea is growing, driven partly by the nation’s café culture, along with an increase in consumers’ preference for stylish, collectible cup sleeves. Most often, beverage brands introduce seasonal and K-pop-themed cup sleeves each year, driving huge demand in the market.
Cup sleeve solutions that are recyclable and reusable are becoming a priority among businesses because of sustainability. Bubble tea and specialty coffee are also propelling the growth of the market.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 3.5% |
Huhtamaki (20-25%)
As the global leader in sustainable cup sleeves, Huhtamaki develops innovative insulation technologies and premium branding solutions that drive performance in the food and beverage industry.
Pactiv Evergreen (15-20%)
Pactiv Evergreen is a key player in custom-printed and heat-insulating cup sleeves, catering to global coffeehouse chains and fast-food service providers.
International Paper (10-15%)
International Paper specializes in highly durable and recyclable cup sleeves, integrating advanced material technology to reduce environmental impact.
Benders Paper Cups (8-12%)
Benders Paper Cups focuses on cost-efficient, embossed cup sleeves, enhancing grip and user comfort for takeaway beverages.
Detpak (5-10%)
Detpak is committed to sustainable innovations, producing compostable and FSC-certified cup sleeves to support environmentally conscious businesses.
Other Key Players (30-40% Combined)
Some of the trends in the cup sleeves market are anticipated reusable cup sleeves, biodegradable coatings and better customization options for promotional campaigns. Other players include:
The overall market size for the cup sleeves market was USD 34,700 million in 2025.
The cup sleeves market is expected to reach USD 51,900 million in 2035.
The cup sleeves market is expected to grow at a CAGR of 4.0% during the forecast period.
The demand for the cup sleeves market will be driven by increasing global coffee consumption, rising demand for sustainable and eco-friendly packaging solutions, growing popularity of takeaway beverages, and the expansion of quick-service restaurants (QSRs) worldwide.
The top five countries driving the development of the cup sleeves market are the USA, China, Germany, Japan, and the UK
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Cup Sleeves Market
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