Straw Papers Market

Straw Papers Market Overview

Newly released data from straw papers market analysis shows that global market demand for straw papers is estimated to register a CAGR of ~5.7% during the forecasted period and reach thousands of tonnes by 2031. The increasing demand for sustainable packaging and cutlery solution from consumers across the globe is anticipated to drive the market growth.

Global Straw Papers Market: Market Outlook

Straw papers are commonly specialty papers that are categorized as food grade for their properties to not alter or interfere with the initial composition of food or beverage products.

The rising inclination of consumers across the globe towards sustainable packaging and cutlery solutions coupled with the consistent efforts of the national governments and international organizations to tackle the issue of drastically growing plastic waste is augmenting the demand for paper-based solutions.

Paper straws are easily disposable and biodegradable making them a favorable product to replace plastic straws. These factors are positively influencing the growth of the straw papers market.

What are the Key Trends Impacting Growth of the Straw Papers Market?

Paper straws are gaining tremendous popularity among many multinational fast food and beverage brands like Starbucks Corporation, McDonald's and Nestlé S.A. among many others. Many of these organizations have replaced plastic straws from their products with paper straws.

This helps these companies achieve their sustainability goals and attract more consumers that are averse to plastic packaging and cutlery products. The increasing adaption of paper straws by global players is one of the trends that is bolstering the market growth for straw papers.

How is Growing Recycled Paper Industry Reshaping the Straw Papers Market?

According to the report published by the Bureau of International Recycling  in 2020, around 420 million tonnes of paper and cardboard are manufactured every year, out of which over half is recycled.

Recycled paper is preferred by the manufacturers as it significantly reduces the emission of greenhouse gases which helps them reduce their carbon footprint, and it also takes around 70% less energy and water to manufacture recycled paper compared to manufacturing virgin paper from plants. These factors are driving the consumption of recycled paper in the straw papers market.

Ismail Sutaria

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

What are the Key Challenges that may Restrain Growth of the Straw Papers Market?

While the straw papers are biodegradable, the number of straws ending up at composting facilities is very less and that raises a concern regarding the increasing waste. However, there are straws available in the market made from glass and metal which are more sustainable alternatives and are reusable.

These are gaining popularity among the consumers as most of these straws are dishwasher friendly and the glass straws do not compromise the taste at all. The straw papers market growth might be restrained as a result of the increasing popularity of straws made from glass or metal.

Competitive Landscape

Key global players such as

• UPM-Kymmene Oyj
• BillerudKorsnäs AB
• Smurfit Kappa Group plc
• International Paper Company
• WestRock Company
• Sappi Limited
• Kotkamills Oy

among others are in the straw papers market.

Become a MarketNgage Insider

An unified Market Research Subscription Platform, built for today’s disparate research needs.

Sign-Up

What Strategies are the Key Players adopting to Increase their Market Share in the Straw Papers Market?

Key players in the straw papers market are adopting a combination of strategies to increase their market share. The key players in the market are making strategic partnerships with straw manufacturers across the globe in an attempt to enhance their geographical footprint. Launching innovative paper straws in partnerships with regional players is another strategy adopted by the manufacturers to increase their market share.

For instance, in December 2020, Nestlé Brazil introduced paper straws from SIG on all NESCAU carton packs. This move of changing to SIG’s paper straw is projected to prevent the use of up to 300 million plastic straws per year by Nestlé.

Further, in July 2019, together with the Paper Straw Co, BillerudKorsnäs AB launched the first functional 180° U-Bend straw, made out of paper.

What are the Key Opportunities for Straw Papers Market Manufacturers?

In the market for straws majority of the market share is covered by plastic straws which are readily available in abundance. The manufacturers of straws are using plastic material as it offers benefits like longer durability when in contact with liquid, no interference with the taste of the product and comparatively economical than the available alternatives.

The straw paper manufacturers have the opportunity to launch innovative paper solutions that can provide better physical characteristics. Innovation can be a game-changing opportunity for manufacturers that will provide them with an edge over competitors in the straw papers market and help to capture maximum market share.

Why will the India Generate Significant Opportunities for the Straw Papers Market Players?

The beverage industry in India is rapidly evolving as a result of the growing demand from the increasing urban population and rising per capita expenditure. Many multinational brands in the beverage industry are entering the Indian markets or increasing their geographical footprint in the country to capture the growing demand.

Further, the growing number of startups entering the beverage industry with new and innovative products is projected to support the growth of the beverage industry in the country. The rapid evolution of the beverage industry in the country is anticipated to create revenue-generating opportunities for the players in the straw papers market.

What is the Impact of the Pandemic on the Growth of the Straw Papers Market?

The repercussions of the COVID-19 pandemic on the straw papers market were not severe. However, the negative impact suffered on the growth of the target market was majorly due to the restriction on the logistics and supply of nonessential products.

The market scenario is changing and gaining pace rapidly with the ongoing ease of restrictions and lifting of lockdowns across the globe and is anticipated to expand at a higher CAGR compared to the period before the pandemic.

Key Segments of Straw Papers Market Covered in the Report

Based on Pulp Type:

• Virgin
• Recycled         

Based on Application:

• Straight
• U bend
• Telescopic

Based on End use:

• Fruit Juices
• Cocktails
• Milkshakes
• Soft Drinks
• Alcoholic Beverages
• Other Beverages

Based on the Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa