Market Trends of GCC Paper Cup Industry
Hot Paper Cup to Witness Significant Growth
- Hot paper cups are hugely demanded across the region, with the growing population, immense commercial and institutional infrastructure growth, and high spending capacity of the individuals. Also, the consumption of hot paper cups is spiked owing to the fast and hectic lifestyle of people in the region.
- As a growing number of premium and specialist operators raise the standard for quality, service, and choice throughout the region, Saudi Arabia and the United Arab Emirates have emerged as important centers for development and innovation. Paper cups are increasingly used to serve tea and coffee in the beverage sector, substantially impacting global expansion.
- In the past three decades, temperatures in the region have increased far more quickly than the global average. As precipitation has fallen, scientists believe droughts may become more frequent and severe. Due to the region's alarming worldwide warming and other environmental issues, users are concerned that everyday products must be environment-friendly.
- Paper cups are biodegradable because of the absence of plastic or styrofoam. These throwaway cups degrade quickly because of their disposable nature. The cups are constructed of water and wood pulp. There can be no doubt that it is the safest option for food and beverages industries.
- Also, offices and corporate centers in the Gulf Cooperational Council (GCC) are robust in places including Saudi Arabia, Qatar, the United Arab Emirates. These offices' cafeterias and breakout zones majorly use disposable hot paper cups.
- With the growth of tourist footfall in the region, there would be a recovery in demand for disposable cups for refreshers in hotels, restaurants, and malls. The rapid growth of industrial and commercial buildings, changes in the lifestyle of people would drive the growth of hot paper cups across the region over the forecast period.
- The United Arab Emirates' (UAE) hotel sector is expected to generate over USD 7 billion in revenue in 2026, according to Alpen Capital. A large user of throwaway goods like paper cups is the hospitality sector, which includes hotels, restaurants, cafés, and other places. The use of paper cups to serve clients' beverages is probably going to rise as the hospitality sector's income in the UAE rises. The GCC paper cup market may benefit from this growing demand.
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Quick Service Restaurants to Witness Significant Growth
- During the projection period, the quick-service restaurant industry is predicted to grow considerably in the region. The expansion of the market is largely fueled by shifting consumer tastes and an increase in the workforce. In the GCC, since there is frequently little entertainment, eating out is a rather frequent pastime. More than a third of visitors to malls come for meals rather than shopping. For both hot and cold beverages, most quick-service restaurants utilize disposable paper cups. As a result, paper cups are in high demand throughout the area.
- Additionally, the GCC's developing infrastructure which includes new highways, airports, malls, parks, and entertainment venues allows for the opening of several fast food and beverage companies. Additionally, increased road traffic increases demand for quick and ready-to-eat food and beverages.
- Many coffee shops and eateries now only provide carryout or curbside pickup. To ensure food delivery during the lockdowns, some businesses limited their in-store capacity and developed creative delivery methods. The need for paper cup solutions is expected to rise dramatically in the food and beverage sector. This is mostly due to the rising need for hygiene goods, which has made paper an attractive packaging option.
- The United Arab Emirates' gross domestic product was predicted by the International Monetary Fund (IMF) to increase consistently between 2022 and 2027 and reach USD 6,302.9 US (+13.19%). The country's overall productivity and the increase in consumer spending are both reflected in the gross domestic product. As the UAE's GDP increases, more economic activity and higher income levels are being experienced. People's increased discretionary income frequently causes them to spend more on goods and services. Consumers are more inclined to attend restaurants and other hospitality venues as a result of having more discretionary income, which raises the demand for items like paper cups. The GCC Paper Cup Market may expand as a result of this rise in consumer expenditure.
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