GCC Paper Cup Market Size

GCC Paper Cup Market Analysis

The GCC paper cup market is valued at USD 351.88 million in the current year and is expected to attain a CAGR of 3.40% during the forecast period to reach USD 437.26 million in the next five years. The recyclability of paper cups is one of the key factors driving the growth of the paper cup market. These cups can be recycled indefinitely because they are made of paper. Manufactured on par with environmental regulations, users benefit from the cost advantages of packaging while eliminating disposal concerns. It helps the vendors to contribute to the sustainability goals through their products.

• The rise in tea, coffee, and soft drinks consumption on account of a considerable increase in the population is one of the key factors catalyzing the demand for paper cups in the region. The burgeoning food and beverage (F&B) industry and the escalating order for disposable packaging in quick service restaurants (QSRs) to minimize the risk of leakage and spillage of different food products and beverages positively influence the market. The emerging trend of social gatherings on special occasions also drives the country's need for disposable plates, cups, and other containers.
• The environmental damage caused by plastic cups has led various organizations to encourage the utilization of paper cups due to their eco-friendly nature, which has positively impacted the global paper cups market. Moreover, on account of increasing awareness about cleanliness and hygiene, consumers consider disposable paper cups safer than reusable cups, as they are exposed to high heat during manufacturing, killing bacteria and rendering the product practically sterile.
• Increasing adoption of disposable cups to serve hot and cold beverages in quick-service restaurants is likely to drive their demand in the coming years. In addition, the rising usage of such cups for drinking water in several commercial and residential parties is expected to conduct their demand.
• Significant and broad-based inflation (including raw materials, labor, distribution, and energy), the decline in consumer demand, availability of raw materials, and movements in currency rates are considered relevant short-term business risks and uncertainties in the operations. Geopolitical, general political, economic, and financial market conditions, as well as potential further escalation of the geopolitical crisis, can also adversely affect the implementation of the strategy and business performance and earnings. The COVID-19 pandemic disturbed the trading conditions, operating environment, and demand for the products.
• The outbreak of the COVID-19 pandemic had a considerable impact across various industries, including the packaging industry, as the widespread lockdown and restriction on workforce utilization in factories significantly impacted demand and production. A significant portion of the need for paper cups was mainly from coffee shops, on-the-go restaurants, and others.