Disposable Paper Cups Market is expected to reach US$ 11,039.14 Million by 2028

Regulations to Promote the Use of Paper-Based Solutions Drives Disposable Paper Cups Market 

According to our latest market study on “Disposable Paper Cups Market to 2028 – COVID-19 Impact and Global Analysis – by Material (Air Pocket Insulated, Poly-Coated Paper, Wax-Coated Paper, and Others) and End-User (Food Service, Retail, and Institutional & Industrial),’’ the disposable paper cups market was valued at US$ 8,714.28 million in 2021 and is projected to reach US$ 11,039.14 million by 2028; it is expected to grow at a CAGR of 3.4% from 2021 to 2028.

Plastic is causing a significant harm to the environment by getting clogged in oceans, rivers, and other water bodies or end up in the landfills. Plastic biodegrades in about 400 years in landfills and in the seas, it breaks into smaller pieces, which are referred to micro-plastic. Chemicals such as bisphenol A (BPA) and PS oligomer present in plastic may be hazardous even in small amounts, and aquatic life and birds may mistake micro-plastics for food, therefore plastic is therefore a major threat to the environment, regardless of its size. Many governments and regulatory bodies across the globe are promoting the use of paper-based packaging solutions to minimize their plastic footprints. For instance, to reduce the plastic footprint, the Chinese government has set restrictions on the packaging industry for utilizing plastic in packaging products. The government enacted a ban on single-use plastic cups and containers used by various beverage and fast food companies in January 2020 and encouraged them to use sustainable paper-based packaging solutions. Moreover, the European Union also regulates the use of single use plastic products. According to the EU, single-use plastic products such as cutlery, plates, straws, cups, and food and beverage containers, among other items, cannot be sold in EU Member States if sustainable alternatives are readily available. Furthermore, the Indian government has also banned the use of disposable plastics and is encouraging manufacturers to use paper packaging products. Such regulations are expected to potentially boost the disposable paper cups market growth across various regions. Although disposable paper cups are sustainable alternatives to plastic cups, they are hard to recycle. To make disposable paper cups leak-proof, they are lined with polyethylene. Because paper cannot hold hot or cold beverages for an extended period of time, disposable paper cups have an inner plastic liner to prevent leaks. When these paper cups are recycled, however, the plastic liner must be removed from the paper, which is a time-consuming and complicated process. As a result, majority of paper cups wind up in landfills, generating massive amount of waste. Hence, this factor may hinders the disposable paper cups market growth.

Disposable Paper Cups Market Breakdown – by Region

Huhtamaki; Dart Container Corporation; Duni Group; Graphic Packaging International, LLC; F Bender Limited; Seda International Packaging Group; CEE Schisler Packaging Solutions; Grupo Phoenix; SCG PACKAGING; Reynolds Group Ltd. are among the key players operating in the global disposable paper cups market. These companies have a widespread global presence, which allows them to serve a large range of customers, subsequently contributing to the expansion of their disposable paper cups market share. They focus on product launches and geographical expansion to expand their product range in specialty portfolios. Thus, strategic product developments by major players further drive the disposable paper cups market growth. For instance, in February 2019, Dart Container Corporation announced the opening of a research and development facility with an area of 260,000 square-foot in Michigan, US. The new facility was launched to improve speed and capacity of production as well as expansion of the company’s Machinery and Tooling Manufacturing (MTM) function. On the other hand, in October 2018, Duni Group acquired BioPak Pty Ltd, a Pacific supplier of sustainable packaging. The US$ 45.16 million deal led Duni Group to acquire 75% shares of BioPak Pty Ltd. The acquisition was made in order to expand further into Asia-Pacific. Thus, such strategic developments by the key industry participants further drive the disposable cups market growth worldwide.

Impact of COVID-19 Pandemic on Disposable Paper Cups Market

Most of the economies such as the US, Canada, Brazil, Germany, France, India, China and others have recorded the highest number of COVID-19 confirmed cases. The crisis adversely affected the manufacturing sector in the region due to a restricted supply chain, raw material shortage, and shutdown of manufacturing units. In addition, the overall disruptions in manufacturing processes and research and development activities restrained the disposable paper cups market growth. However, the strong foothold of various foodservice giants like Starbucks and McDonalds that offered take-out as well as home delivery services even during lockdowns in the region created a positive demand for disposable paper cups, further surged the disposable paper cups market growth worldwide.

Many fast food joints such as McDonalds, Starbuck, Dunkin Donuts, among others halted their ‘Bring Your Own Cup’ campaign to ensure customer as well as employee safety due to the ongoing COVID-19 pandemic and started providing beverages in disposable paper cups. This factor provided lucrative opportunities to the manufacturers of disposable paper cups and generated significant demand for disposable paper cups. However, there was shortfall in product supply in the initial months of the outbreak due to shutdown of manufacturing units and extended lockdowns which created a demand and supply gap. The global marketplace is recovering from its losses and manufacturers are permitted to operate with full capacity. Manufacturers are able to overcome the demand and supply gap due to revival of their operations. Moreover, due to rising vaccination rates across the globe, the disposable paper cups market is expected to witness a significant growth in the coming years. 

The report segments of disposable paper cups market as follows:

Based on material, the disposable paper cups market is segmented air-pocket insulated, poly-coated paper, wax-coated paper, and others. Based on end user, the disposable paper cups market is segmented into food service, retail, and institutional & industrial. Based on geography, the disposable paper cups market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.

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