The paper cup market is projected to surge at a CAGR of 3.11% from a market value of USD2.587 billion in 2019 to attain a market value of USD3.109 billion by the end of 2025. Paper Cups are one of the types of disposable cups, these are made from paper and find extensive utility for serving food and beverages worldwide. The evolving lifestyle of people with the adoption of a busy lifestyle is driving the market demand for single-use cups, hence this saves time. The growing consumption of tea and coffee is further augmenting the market demand. Also, in commercial areas, one can find immense use of paper cups in tea stalls. Commercially, paper cups are usually wax-coated in order to prevent them from leakage or prevention from turning soggy. Hence, the waxy layer makes these cups durable and liquid-resistant. The growing consumption of fast food is further augmenting the market demand as beverages in the form of accompaniment do play an important role, and paper cups are highly useful for carrying beverages easily. Also, the growing awareness of sharing the same cups and containers are leading to the transfer of germs or diseases is further propelling the market demand and has encouraged people to adopt paper cups, significantly impacting the market growth in the forecast period. Furthermore, the growing trend of using eco-friendly products is driving the market demand in the forecast period. This is due to the fact that these cups have higher biodegradability in comparison to plastic or polystyrene disposable cups. The increasing foodservice industry is further propelling market growth in the forecast period. The growing paper industry is contributing to driving market growth in the forecast period.
Geographically, the North American region is estimated to hold a significant market share due to the high prevalence of the adoption of a busy lifestyle along with the habit of eating outside, while the Asia Pacific region is projected to witness high growth prospects during the course of the forecast period. Rapidly developing corporate culture along with the growing trend of consuming food and beverages outside the home environment has significantly impacted the market growth in this region, creating a high opportunity for revenue generation during the forecast period.
The prevalence of tea consumption is propelling market growth in the forecast period.
According to the Food and Agriculture Organization (FAO), it takes around 2 grams to prepare one cup of tea, while 10 grams to prepare one cup of coffee. As per the British Geographer, David Grigg, at the international level, three cups of tea are consumed for every one cup of coffee. It is clear that tea is widely consumed worldwide in comparison to coffee even though it is observed that green coffee is produced more than tea at the global level. Hence, tea consumption is projected to impede the market growth in the forecast period with prevailing consumer preference for consuming tea over coffee.
Tea is known to originate from China and has gained popularity in the last 2000 years, it is still an important beverage in Chinese society. At present more than 1000 varieties of tea are available in the market and more than 25 countries in the world are involved in tea cultivation.
According to the Tea Association of the U.S.A Inc., tea is the most widely consumed beverage at the global level after water. Around 80% of the households in the United States of America consume tea, on any given day, more than 159 million Americans drink tea.
In 2019, it was noticed that more than 3.8 billion gallons of tea were consumed by Americans. Black tea accounted to hold a share of 84%, green tea accounted for 15%, and the remaining 1% share was distributed among oolong, white, and dark tea consumption. The United States continued to be the third-largest tea importer globally followed by Russia and Pakistan. It is the only western country to grow in tea import and consumption.
The growing popularity of coffee among the younger generation is significantly the market demand in the forecast period.
Coffee drinking is gaining popularity at a significantly fast pace among the millennials. This increasing trend of coffee consumption among the younger generation is projected to surge the market demand with the rise in disposable income of the developing regions of the world and a high disposable income of the citizens of the developed regions of the world. This has further boosted the growth of the coffee industry as well due to the evolving coffee-drinking customers, bringing on innovations in coffee products resulting in a variety of coffee drinks ranging from iced beverages to coffee shakes and classic coffee options. The increasing family income and increasing middle-class population in the emerging economies of the world providing a huge customer base are further augmenting the market demand.Due to increasing coffee drinkers, the companies nowadays are focusing on the interests of the millennial population worldwide.
Furthermore, with the growing adoption of busy lifestyles among the millennials, these younger generations are interested in consuming convenience food and beverages such as ready-to-drink coffee including pre-made coffee which are easy to carry along. Also, with the growing trend, it is easier to find coffee machines in gas stations, in addition to ready-to-drink coffee product variants in the convenience stores for the customers on move.
Moreover, with the continuous spread of the novel coronavirus infections across the world, the global paper cups industry has been negatively impacted as there have been changes in the people’s way of going to work, drinking coffee or tea, and buying other items. The increasing emphasis on work-from-home, home quarantine initiatives, and reduced public gatherings in order to prevent the transmission of COVID-19 infection has resulted in a decline in the market growth in 2020.
The use of biodegradable paper cups is contributing to a surge in the market demand during the forecast period with the growing trend of the adoption of eco-friendly commodities.
The utilization of biodegradable paper cups that are 100% biodegradable is fueling the market demand in the forecast period as it is considered an exceptional packaging alternative with no harmful impact on the environment and thus contributes to lowering the carbon footprint. The utilization of these cups is attributed to its safety and hence it has been observed that several coffee shops worldwide have started using it on a wide-scale. Manufacturers utilize wood pulp, plant material, or bamboo for the manufacturing of biodegradable paper cups. Also, most of the paper is derived out of recycled paper waste and materials that are completely environment friendly.