Paper Cups Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.03 Billion |
| Market Size (2029) | USD 16.96 Billion |
| CAGR (2024 - 2029) | 3.87 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Middle East and Africa |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Paper Cups Market Analysis
The Paper Cups Market size is estimated at USD 14.03 billion in 2024, and is expected to reach USD 16.96 billion by 2029, growing at a CAGR of 3.87% during the forecast period (2024-2029).
The demand for paper cups has increased over the past few years due to increased international pressure to replace single-use plastic with sustainable materials in the food and beverage industry and to create efficient waste management and recycling systems for environmentally friendly products.
- Various government initiatives and regulations call for reduced carbon footprints, providing a robust push for packaging manufacturers to sell eco-friendly paper cups. As per the survey presented by the packaging manufacturer Mondi on 6,000 European adults, around 73% and 68% of the population from France and Germany, respectively, gave more importance to sustainable packaging. Therefore, the consumption of paper is also increasing globally.
- The beverage industry is growing worldwide, and it is expected to play a significant role in the paper cups market. As the beverage industry develops and provides a greater variety of drinks, the need for carriers also increases. There is a growing demand for to-go and home delivery options. This transition includes packaging producers with several options for meeting innovative packaging needs in the food and beverage industry.
- Quick service restaurants (QSRs) offer low-cost food options, focusing on the speed of service. The relationship between quick service restaurants and sustainability has been steady. The growing consumption of beverages and fast food due to the fast-paced lifestyle in the cities of the most developed countries has led to new coffee shops and quick service restaurants. This trend is gradually penetrating developing regions. In addition, people's rising inclination to eat outside as part of their leisure activities adds to growth.
- Paper coffee cups are incinerated or sent to landfills since most paper recycling machines cannot recycle them properly. The hindering process involved in recycling, like separating the plastic liner from the paper cup and chemically sterilizing them, needs advanced machinery.
- This is expected to increase the company's operating expenses and reduce profit significantly. Hence, recycling these paper cups poses a significant indirect threat to the environment, thereby acting as a major challenge to the growth of the market studied.
- However, the food service industry heavily relies on disposable cups and scorching beverages like coffee and tea. The food service industry's growth suggests an expanding market for coffee shops and similar businesses, contributing to the demand for paper cups. In the post-pandemic era, people continue using single-use paper cups, keeping hygiene in mind.
Paper Cups Market Trends
The Quick Service Restaurants (QSRs) Segment Holds a Significant Market Share
- Quick service restaurants offer fast service for food items prepared with minimal time. QSRs are also known as fast-food restaurants, and the growing number of QSRs globally has boosted the demand for paper cups. According to the International Franchise Association, QSRs offer economical menu options and are likely to expand due to strong demand for food deliveries.
- Fast food and fast-service restaurants are becoming popular across the globe as they offer convenient food options and speed of service to individuals. Furthermore, the growing consumption of beverages and food in restaurants, coupled with the busy lifestyle of millennials, has led to significant growth of quick service restaurants globally.
- The increasing popularity of the franchise model is also boosting the number of quick service restaurants. According to the International Franchise Association, franchise outputs in the QSR industry were projected to increase by 2.5% in 2023, boosting the market’s growth.
- Quick service restaurants use disposable paper cups for serving hot or cold beverages. The paper cups are single or double poly-coated or wax-coated, offering rigidity and leakage protection for beverages. These cups vary in patterns, colors, sizes, and shapes, depending on the restaurant's servings.
- The rise in sustainable packaging trends in QSRs has led to the growing trend of take-out food and beverage options and delivery options. Increasing consumer awareness regarding single-use packaging has also prompted companies to invest in alternatives that minimize environmental impact.
- For instance, in April 2024, New York Fries (NYF), a Canadian quick service restaurant, partnered with SOFi Products, a Canada-based manufacturer of paper cups and lids, to provide a paper cup that is 100% compostable and biodegradable.
- According to AFRY and Suzano PaperLine, the global consumption of paper is expected to increase from 417 million metric tons in 2021 to 476 million metric tons in 2032. This spike in paper consumption is anticipated to be bolstered by the demand from the packaging industry, which primarily includes disposable paper cups. This constant demand rise for sustainable paper packaging is likely to continue during the forecast period, driving the paper cup industry forward.
Middle East and Africa to Witness Major Growth
- The Saudi Arabian paper cups market is expected to grow significantly due to increased travel and social media usage, exposing a significant segment of Saudi society to Western culture. Technology and increasingly relaxed social norms have amplified freedom of choice, benefiting the hospitality industry by facilitating a growing consumer base, sales, and transaction volumes.
- The growth of the food and beverage service market in Saudi Arabia creates an environment for expanding the paper cups market by increasing demand, promoting sustainability, fostering product diversification, facilitating branding opportunities, and potentially driving regulatory changes favoring eco-friendly packaging solutions. According to the General Authority for Statistics (Saudi Arabia), the revenue of the food and beverage service market in Saudi Arabia is estimated to amount to USD 16.03 billion in 2025 compared to 2020, which was USD 14.46 billion.
- Rising awareness of environmental issues may influence consumer preferences toward eco-friendly packaging options. Paper cups are biodegradable and renewable, aligning with the sustainability concerns of environmentally conscious consumers. As the CPI increases and consumers become more price-sensitive, businesses may prioritize environmentally friendly packaging solutions like paper cups to appeal to this growing market segment.
- According to Statistics South Africa, as of February 2024, the Consumer Price Index (CPI) in South Africa, an economic indicator providing information on the change of prices over time, was measured at 113.9 points regarding food and non-alcoholic beverages. This was an increase of 1.1 points from the previous year.
- Egypt's urban population is increasing as more people migrate to cities for better opportunities. Typically, a higher demand for disposable food and beverage containers is observed in urban areas due to the prevalence of fast-paced lifestyles and the popularity of cafes, restaurants, and street food vendors. Thus, this trend contributes to the growth of the paper cups market.
Paper Cups Industry Overview
The paper cups market is semi-consolidated, leading to several small players entering the emerging markets. However, the market remains relatively consolidated in developed economies compared to developing economies. The key players operating in the paper cups market include Huhtamaki oyj, Kap Cones Private Limited, Graphic Packaging International LLC, Dart Container Corporation, and Converpack Inc.
- In January 2024, Go-Pak Group, a manufacturer of paper cups and other food service packaging products, announced a three-year strategic partnership with H&M Distribution, marking a pivotal milestone in enhancing customer service by prioritizing delivery efficiency, bolstering reliability, and actively reducing carbon emissions.
- In September 2023, Graphic Packaging International announced its plans to build a facility in Waco, Texas, to produce recycled paperboard, a responsible packaging alternative. The plant is slated to ramp up production in 2026. The Waco facility will leverage the industry's modern technology to produce recycled paperboard to package standard products ranging from cereal to pasta. When complete, the cutting-edge facility is anticipated to recycle fiber from about 15 million paper cups daily, increasing the company's capacity to provide high-quality recycled paperboard to customers across the United States.
Paper Cups Market Leades
Huhtamaki oyj
Kap Cones Private Limited
Graphic Packaging International LLC
Dart container corporation
Converpack Inc.
*Disclaimer: Major Players sorted in no particular order
Paper Cups Market News
- February 2024: Linstol, a European company, partnered with Smart Planet Technologies, a United States-based company, to introduce a paper cup innovation designed for cold beverage consumption in flights called the Super Cool Cup. The Super Cool Cup leverages a patent-pending mineralized barrier coating technology to create an eco-friendly, recyclable, and compostable cup.
- January 2024: Biffa launched a nationwide recycling service for hot and cold takeaway drink cups, and the company provides all the help a business needs, from compliance advice to cup disposal points, bags, and bins.
Paper Cups Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of the Current Geo-political Scenarios on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for On-the-go Consumption of Beverages
5.1.2 Recent Innovations Have Aided Shelf Life
5.2 Market Challenges
5.2.1 Recyclability-related Concerns in the Form of Disposal and High Levels of Fragmentation are Expected to Affect Profit Margins
6. MARKET SEGMENTATION
6.1 By Cup Type
6.1.1 Hot Paper Cups
6.1.2 Cold Paper Cups
6.2 By End User
6.2.1 Quick Service Restaurants (QSRs)
6.2.2 Institutional
6.2.3 Other End Users
6.3 By Wall Type
6.3.1 Single Wall Paper Cups
6.3.2 Double Wall Paper Cups
6.3.3 Triple Wall Paper Cups
6.4 By Geography***
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 France
6.4.2.3 Germany
6.4.2.4 Italy
6.4.2.5 Spain
6.4.3 Asia
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.5.1 Brazil
6.4.5.2 Argentina
6.4.5.3 Mexico
6.4.6 Middle East and Africa
6.4.6.1 Saudi Arabia
6.4.6.2 South Africa
6.4.6.3 Egypt
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Huhtamaki oyj
7.1.2 Kap Cones Private Limited
7.1.3 Graphic Packaging International LLC
7.1.4 Dart Container Corporation
7.1.5 Converpack Inc.
7.1.6 Go-Pak UK Ltd (SCGP Packaging)
7.1.7 Benders Paper Cups
7.1.8 Hotpack Global
7.1.9 Tekni-Plex Inc.
7.1.10 CEE Schisler Packaging Solutions
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Paper Cups Industry Segmentation
The study tracks the demand for paper-based cups in terms of revenue (USD). The scope of the study is limited to paper cups only. The study tracks the market size in revenue for the respective end-user industry verticals in the respective countries from the listed product types. The study factors in the impact of geopolitical factors on the paper cups market, key themes, and end user-related demand cycles.
The paper cups market is segmented by cup type (hot paper cups, cold paper cups), end user (quick service restaurants, institutional, and other end users), wall type (single wall paper cups, double wall paper cups, and triple wall paper cups), and geography (North America [United States, Canada], Europe [United Kingdom, France, Germany, Italy, Spain, Rest of Europe], Asia-Pacific [China, Japan, India, Australia, and Rest of Asia-Pacific], Latin America [Brazil, Argentina, Mexico, and Rest of Latin America], Middle East and Africa [Saudi Arabia, South Africa, Egypt, and Rest of Middle East and Africa]). The market sizes and forecasts are provided in value (USD) terms for all the above segments.
| By Cup Type | |
| Hot Paper Cups | |
| Cold Paper Cups |
| By End User | |
| Quick Service Restaurants (QSRs) | |
| Institutional | |
| Other End Users |
| By Wall Type | |
| Single Wall Paper Cups | |
| Double Wall Paper Cups | |
| Triple Wall Paper Cups |
| By Geography*** | |||||||
| |||||||
| |||||||
| |||||||
| Australia and New Zealand | |||||||
| |||||||
|
Paper Cups Market Research FAQs
How big is the Paper Cups Market?
The Paper Cups Market size is expected to reach USD 14.03 billion in 2024 and grow at a CAGR of 3.87% to reach USD 16.96 billion by 2029.
What is the current Paper Cups Market size?
In 2024, the Paper Cups Market size is expected to reach USD 14.03 billion.
Who are the key players in Paper Cups Market?
Huhtamaki oyj, Kap Cones Private Limited, Graphic Packaging International LLC, Dart container corporation and Converpack Inc. are the major companies operating in the Paper Cups Market.
Which is the fastest growing region in Paper Cups Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Paper Cups Market?
In 2024, the Middle East and Africa accounts for the largest market share in Paper Cups Market.
What years does this Paper Cups Market cover, and what was the market size in 2023?
In 2023, the Paper Cups Market size was estimated at USD 13.49 billion. The report covers the Paper Cups Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Paper Cups Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What's driving the Paper Cups Market growth?
One of the major factors driving the market growth is the rising demand for paper cups in the increasing trend of consumption of on-the-go beverages, takeaway & delivery.
What are the key challenges in the Paper Cups Market?
The key challenges in the Paper Cups Market are a) Limited availability of raw materials b) Shift towards remote work and c) Consumers' preference for sustainable alternatives
What's driving the Paper Cups Market growth?
One of the major factors driving the market growth is the rising demand for paper cups in the increasing trend of consumption of on-the-go beverages, takeaway & delivery.
Paper Cups Industry Report
The global paper cups market is poised for notable growth in the upcoming years, propelled by an increasing emphasis on sustainability and the shift away from single-use plastics. The growth of this market is further supported by the rising consumption of coffee and tea, fast-paced lifestyles, and the convenience offered by disposable cups for on-the-go consumption. Additionally, innovations in paper cup manufacturing, such as the development of recyclable and compostable cups, are meeting the demand for eco-friendly options. The food and beverage sector, particularly the quick service restaurants (QSR) segment, is a significant driver of demand for paper cups. The Asia Pacific region is emerging as a key market, driven by rapid urbanization, a growing middle-class population, and increasing disposable incomes. Statistics for the Global Paper Cups Market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Paper Cups analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
