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.
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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.
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.
- Up to 150 ml
- 151 to 350 ml
- 351 to 500 ml
- Above 500 ml
- Cold Beverage Cups
- Hot Beverage Cups
- Departmental Stores
- Online Sales
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific