Paper Cups Market to Expand 1.5X by 2028
Amidst the existing concern of 'white pollution', industry executives are proactively embracing sustainable business practices as regulatory requirements and consumer demands multiply. Packaging converters, in particular, are making bold commitments to enhance both, the sustainability of their packaging and to reimagine their packaging formats fundamentally. Paper cups offer consumers a convenient and hygienic product derived from sustainably-managed renewable resources. Tech-driven transformations are enabling the industry to spur advancements in the recycling of paper-based products to counter plastic pollution. As per an FMI study, worldwide consumption of paper cups will value around US$ 10 Bn in 2023.
Paper Cups Market- Key Research Findings
- Nearly 306 Bn units of paper cups were consumed in 2019.
- Modern, on-the-go, high-frequency, and variety-seeking consumers are expected to drive the demand for paper cups. The market is projected to record a CAGR of 4.4% during the forecast period (2020-2028).
- Hot beverage cups remain highly preferred cup types, contributing more than 65% to the global paper cups market value.
- Manufacturers of paper cups are likely to witness remunerative growth opportunities, as regulatory bodies across the world decide to levy taxes on plastic products.
- Investing in the manufacturing of paper cups is likely to yield positive returns.
- The Asia paper cups market is expected to register a CAGR of 5.8% during 2020-2028.
- China has been at the forefront, with a meteoric growth in the production as well as consumption of paper cups over the last decade.
- India represents a largely under-penetrated paper cups market, given the recent economic boom. However, as per FMI analysis, India is expected to experience the highest growth in the paper cups market in the Asia Pacific region.
Key Factors Shaping Paper Cups Market
Increasing Footfalls in Public Places Fuelling Demand for Paper Cups
In many countries of Asia Pacific and North America, footfall in public places, such as bus stops, airports, railways, and others, has been increasing at a significant pace, due to various factors such as increasing migration of people from foreign countries and the resulting increase in population. Therefore, the demand for products, such as from the foodservice industry, has been on the rise in these regions. This development is expected to play a pivotal role in the growth of the global paper cups market during the forecast period. In an effort to modernize and enhance customer experience, brand owners are expected to generate substantial demand for paper cups.
Convenience Provided by Vending Machines to Drive Demand for Paper Cups
Vending machines are commonly found in places, such as airports and railway stations. They save consumers the hassle of standing in long queues and are quite user-friendly. The increasing popularity of vending machines will help create more demand for paper cups. The impact of advancements in vending technology has led to the advent of intelligent vending machines, the demand for which is increasing at a good pace in regions such as Europe and North America.
Quarantines Due to COVID-19 Limit Market Growth
The COVID-19 pandemic is spreading at an unprecedented rate compelling governments across the world to declare national lockdowns, in addition to self-isolation and social distancing. It is not only an economic shock, but a shock to business models and consumers’ behaviour. The problems occurring due to the pandemic will be of greater magnitudes compared to the present situation. As the COVID-19 pandemic continues to hold its influence given that the global population is self-quarantined for a few months ahead, this will have an adverse effect on the paper cups market.
Paper Cups Market: Structure Analysis
- Huhtamaki Oyj, Westrock Company, Georgia-Pacific LLC, and International Paper Company are amongst the leading paper cup manufacturers.
- These key players are manufacturing printed paper cups to enhance their aesthetic appeal. Engraving is a common practice, especially for leading companies operating in the paper cups market. Huhtamaki Oyj. recently developed a new paper cup concept, which enhances its existing line of premium paper cups.
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Report Metric |
Details |
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Base Year Considered |
2019 |
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Actual Estimates/ Historical Data |
2016 - 2019 |
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Forecast Period |
2020 - 2028 |
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Forecast Units |
Value (USD) Mn |
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Segments Covered |
Cup Capacity, Cup Type, Sales Channel, End User, and Region |
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Regions Covered |
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, and MEA |
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Key Players |
Huhtamaki Oyj, Westrock Company, Georgia-Pacific LLC, Dart Container Corporation, Genpak LLC, Nippon Paper Industries Co., Ltd., Pactiv LLC., Lollicup USA, Inc., Coveris Holding S.A., and International Paper Company. |
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Report Coverage |
Revenue Forecasts, Company Share, Competitive Landscape, Growth Factors, and Trends. |
Manufacturers Target Foodservice Packaging for Outsized Returns
Paper cups are becoming a huge success in compostable foodservice packaging. Outside of restaurants, foodservice packaging is enabling public foodservice establishments such as hospitals, sports stadiums, nursing homes, schools, and universities to serve myriads of consumers daily with enhanced flexibility. FMI finds that, around 6 out of 10 paper cups are utilized in foodservice packaging. The trend will scale up in the near term as sustainability norms continue to gain stringency. Furthermore, the usage of paper cups in institutional settings and household applications is expected to slide gradually.
North America Continues its Hegemony, APAC Market to Boom
Paper cup manufacturers would stay glued to North America, which accounts for over one-third of total revenue growth. Governments in the region are enforcing strict regulations in response to rising plastic waste generation. However, North America is likely to lose some share to Asia Pacific (APAC) over the time ahead. Evolving lifestyles and increasing preference for convenience food & beverages are significantly responsible for this transition. As such, the paper cups market in APAC will hit US$ 3 Bn by 2024.
Stakeholders Must Capitalize on Vending Machines
Establishing a physical store at every high-demand area is unfeasible and troublesome for retailers and brand owners. As such, they are banking on vending machines to address the problem. Vending machines are commonplace at railway stations and airports, and preclude consumers from the hassle of waiting in long queues. Growing popularity of vending machines is likely to bode well for the paper cups market. With technology at the center, intelligent vending machines are making foray, especially in developed regions, which are further complemented by smart interaction features for better consumer experience. Paper cup manufacturers must capitalize on this transition in order to capture value at stake.
151 to 350 ml capacity paper cups hold leading value share
351 to 500 ml capacity paper cups to gain traction
Hot beverage cups stay highly preferable
Cold beverage cups to see adoption increase
Distributors account for greater sales
Sales via supermarkets to surge
High consumption in foodservice packaging
Usage in institutional settings to drop
How Growth will Unfold
Market players continue to remain reliant on distributors for the sales of paper cups. By 2028, distributors will generate over 40% total returns to shareholders, which, however, is expected to drop in the coming years. Paper cup manufacturers are thus allocating their capital to supermarkets and departmental stores, as they offer a wide range of ready-to-eat (RTE) food, and contain a separate eat-in area. Together, both these sales channels would register a valuation of over US$ 6 Bn by 2028.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
A recent market report published by Future Market Insights on the paper cups market provides global industry analysis of 2014-2019 and forecasts for 2020-2028. The report offers a comprehensive assessment of the most important market dynamics. After conducting thorough research on the historical as well as current growth parameters of the paper cups market, the growth prospects of the market are obtained with maximum precision.
Paper Cups Market Taxonomy
The global paper cups market is segmented in detail to cover every aspect of the market and present complete market intelligence to the readers.
Cup Capacity
- Up to 150 ml
- 151 to 350 ml
- 351 to 500 ml
- Above 500 ml
Cup Type
- Cold Beverage Cups
- Hot Beverage Cups
Sales Channel
- Supermarkets
- Distributors
- Departmental Stores
- Online Sales
End User
- Foodservice
- Institutional
- Households
Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific
- MEA
What's Included
The report begins with an executive summary of the paper cups market, which includes a summary of the key findings and statistics of the market. It includes dominant segments in the global paper cups market, along with key facts about paper cups. It also includes graphical representation of the segments according to market size and growth rate.
Readers can find detailed taxonomy and definition of the paper cups market in this chapter, which will help them understand basic information about paper cups available in the market. This section also highlights the inclusions and exclusions, which help readers to understand the scope of the paper cups market report.
This section explains the global market volume analysis and forecast for the paper cups market between the forecast period of 2020-2028. It includes the detailed analysis of the historical paper cups market, along with an opportunity analysis for the future. Furthermore, this section explains the global market value analysis and forecast for the paper cups market between the forecast period of 2020-2028. Readers can also find the absolute opportunity for the current year (2019 - 2020), and an incremental opportunity for the forecast period (2020 - 2028). In addition to this, this section also highlights the average pricing analysis of different machine types of paper cups in different regions across the globe. The weighted average pricing at the manufacturer-level is analyzed in this section.
This chapter explains the key macroeconomic factors that are expected to influence the growth of the paper cups market over the forecast period. This section also highlights the opportunity analysis for the paper cups market along with macroeconomic factors. This chapter also highlights the key market dynamics of the paper cups market, which includes the drivers and restraints. This section also includes Porter’s analysis, forecast factors, and value chain analysis.
Based on cup capacity, the paper cups market is segmented into up to 150 ml, 151 to 350 ml, 351 to 500 ml, and above 500 ml. In this chapter, readers can find information about key attractive segments during the forecast period.
Based on cup type, the paper cups market is segmented into cold beverage cup and hot beverage cup. In this chapter, readers can find information about key segments during the forecast period.
This chapter provides details about the paper cups market on the basis of supermarkets, distributors, departmental stores, and online sales.
This chapter provides details about the paper cups market on the basis of foodservice, institutional, and households.
This chapter explains how the paper cups market is expected to grow across various geographical regions such as North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, and MEA.
This chapter includes a detailed analysis of growth of the North American paper cups market, along with a country-wise assessment that includes the U.S. and Canada. Readers will also find some of key points on the basis of estimated market size and consumption of paper cups.
Readers can find detailed information about several factors, such as the pricing analysis and the regional trends, which are impacting the growth of the Latin America paper cups market. This chapter also includes the growth prospects of the paper cups market in leading countries in Latin America such as Brazil, Mexico, and the Rest of Latin America.
Important growth prospects of the paper cups market based on system type, product type, application, and end-use in several countries such as Italy, Germany, France, UK, Spain, and Rest of Europe are included in this chapter.
Russia, Poland, and Rest of Eastern Europe are the leading countries in the Eastern Europe region that are the prime subjects of assessment to obtain the growth prospects of the Eastern Europe paper cups market in this chapter. Readers can find detailed information about the growth parameters of the Eastern Europe paper cups market during the forecast period of 2020-2028.
This chapter highlights the growth of the paper cups market in East Asia by focusing on China, India, Japan, ASEAN, Australia &New Zealand, and Rest of APAC. The section also highlights data points regarding the growth of the paper cups market in Asia Pacific.
This chapter provides information about how the paper cups market is anticipated to grow in major countries in the MEA region such as the GCC Countries, South Africa, Turkey, Northern Africa, and the Rest of MEA during the forecast period 2020 - 2028.
In this chapter, readers will find a comprehensive list of all leading manufacturers in the paper cups market, along with detailed information about each company, including company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Dart Container Corporation, Huhtamäki Oyj, Pactiv LLC, WestRock Company, Coveris Holdings S.A., Genpak LLC, Lollicup USA Inc., Nippon Paper Industries Co., Ltd, International Paper Company, and Georgia-Pacific LLC.
This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the paper cups report.
This chapter helps readers understand the research methodology followed to obtain various conclusions, as well as, important qualitative and quantitative information, about the paper cups market.
How the research was conducted?
Primary Research
Primary research interviews with key opinion leaders and other participants were conducted for data collection and validation of the below information:
- Key Segments in the Paper Cups Market
- Market Share Analysis
- Average Selling Price (US$) and Market Growth
- Market Size
- Key Trends & Developments
- Competition & Key Vendor Strategies
Secondary Research
- Industry Journals
- Beverage Industry Growth
- Foodservice Packaging Industry Growth
- Annual Reports/SEC Filings/Investor Presentations
Primary Interview Splits
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