Paper Cups Market By Product Type (Hot Paper Cups and Cold Paper Cups), By Application (Tea and Coffee, Other Food & Beverages, and Chilled Food & Beverages), and Region - Global Forecast to 2028

The global Paper Cups market was valued at more than US$ 20 Bn in 2019, and is expected to register a CAGR of 3%. The global paper cups market report has been segmented on the basis of product type, application, and region.

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Paper cups are disposable containers, made up of paper and are cylindrical in shape. It is usually coated or lined, with either wax or plastic, in order to prevent leaking out or soaking of any liquid. Paper cups are available in different sizes and colors and are widely used across the globe.

A major factor driving growth of the global paper cups market is increasing demand from food and beverage industries for cheap and environment friendly packaging alternatives. Increasing demand from food and beverage industries is attributable to the increasing demand for packaged food and beverages across the globe. In addition, consumers prefer paper cups as they are light weight in nature and can be easily disposed of. Recent trends observed in hospitality sector, in particular restaurant industry, are home delivery services and take away services. Such trends are effect of rapid urbanization, coupled with changing lifestyle patterns, and is augmenting the demand for paper cup containers across the globe, which in turn is expected to drive growth of the global paper cups market, over the forecast period.

One of the primary factor contributing to growth of global paper cups market is implementation of stringent rules and regulation, by governments across the globe on usage of plastic containers, as plastic are non-biodegradable in nature and therefore causes pollution. Paper cups are used as alternatives to such plastic containers, due to high bio-degradable nature of paper.

In addition, increasing awareness about hygiene and sanitation across the globe is also driving demand for paper cups. Paper cups are preferred by consumers, as they are easily disposable and can be used only once. Paper cups also finds indispensable application in organizations, hospitals, educational institutions, etc., thereby driving growth of global paper cup market.

Factors such as availability of substitutes, increasing presence of small manufacturing firms and increasing competition are expected to have a negative impact on growth of global paper cup market over the forecast period. In addition, although paper cups are bio-degradable and are considered to be environment friendly, it can also have a negative impact on the environment. Basic raw material used in production of paper cup is wood, which means cutting down of trees, which has a negative impact on the environment. Moreover, the coating of paper cups constitutes polyethylene which is difficult to separate from paper cups during recycling process, causing production of very little recycle paper. Emission of harmful greenhouse gasses during the time of disposal of paper can also harm the environment. Moreover, lack of recycling infrastructure in many developing economies have resulted in generation of solid waste in landfills. All these factors can act as restraining factors to growth of the global paper cups market

Use of bio-plastics in place of polyethylene as coating on paper cups is expected to create lucrative revenue opportunities for players in the global paper cups market, over the forecast period.

The recent trend observed in global paper cup market has been the increasing strategic partnership between the manufacturers of paper cups and leading fast food companies to recycle paper cups, which is expected to drive growth of the global paper cups market over the forecast period.

Market Analysis by Product Type:

On the basis of product type, the hot cups segment is expected to contribute major revenue share in the global paper cups market and is expected to register highest CAGR of over 3%, in terms of revenue over the forecast period, owing to air pocket insulating design used in hot paper cups that keep beverages hot and warm, providing end user customers comfort and convenience.

Market Analysis by Application

Among all the application segments, the tea and coffee application segment is expected to contribute major revenue share in the global paper cups market and is expected to register highest CAGR of over 2.9%, in terms of revenue over the forecast period, owing to increasing consumption of coffee by majority of population, coupled with increasing coffee shop and retail outlets across the globe. In addition, increasing demand for tea in developing economies is also expected to drive growth of the segment over the forecast period.

Market Analysis by Region:

North America market is expected to dominate in the global paper cups market, and is expected to account for highest market revenue share in 2020, as compared to that of markets in other regions. Major driving factor leading to growth of markets in North America is increasing demand from various institutions such as restaurants, hospitals, schools, commercial center, owing to biodegradable nature of paper cups and availability of paper cups in various sizes and colors and designs. In addition, rapid urbanization and changing lifestyle pattern, coupled with increasing disposable income in developed economies is driving demand for tea and coffee, which in turn is expected to drive growth of the global market.

Market Segmentation of Global Paper Cups Market: 

Segmentation by product type:

• Hot Paper Cups
• Cold Paper Cups 

Segmentation by application:

• Tea and Coffee
• Other Foods and Beverages
• Chilled Foods and Beverages

Segmentation by region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa