Europe Biodegradable Cups Market Size

Europe Biodegradable Cups Market Analysis

The Europe Biodegradable Cups market (henceforth, referred to as the market studied) is expected to register a CAGR of 6.35% during the period, 2021-2026 (henceforth, referred to as the forecast period).

With an outbreak of COVID-19, many companies have begun shifting away from the sustainability goal of banning plastic. Some studies suggested that the virus can be passed on through cardboard and plastic, which has resulted in increased usage of single-use materials across the supermarkets to wrap products.

• To truly capture the potential for biodegradable cup packaging, the region needs to have an adequate composting and collection infrastructure to support the use. Currently, very few municipalities across the world have such infrastructure. However, with the increasing awareness, investment, and ban on single-use plastic, this is likely to ascend, creating an ample amount of opportunities for the existing and new market players. Partnering for such activities can create strategic opportunities for vendors operating in the market space.
• Currently, Europe leads the market, owing to substantially higher landfill disposal costs (calculated by adding together landfill taxes plus landfill gate fees), coupled with awareness and plastic bans. Owing to the exceptional characteristics and benefits of biodegradable plastic packaging, the scope for new entrants is rapidly increasing in the European region.
• According to the European bioplastics, the biodegradable plastics altogether, including PLA, PHA, starch blends, and others, account for over 55.5% (over one million tonnes) of global bioplastics production capacities. The production of biodegradable plastics is anticipated to increase to 1.33 million in the year 2024, especially due to PHA's significant growth rates.
• The region is also witnessing entry of new players that are introducing highly biodegradable cups in the market. For instance, in January 2020, Lavazza Professional introduced a new recyclable and biodegradable product known as KLIX Eco Cup that is manufactured using paper sourced from sustainably managed forests. The product is created in partnership with manufacturer Kotkamills, was made available in KLIX vending machines from February 2020, serving a wide range of hot drinks brands, with more to come throughout the year.The new KLIX Eco Cup is unique due to a special patented water-based dispersion barrier board that enables the cups to be recycled with normal paper waste, just like office paper. Such innovations combined with increasing partnerships is expected to spur the market growth during the forecast period.