Recyclable Cups Market Is Estimated To Witness High Growth Owing To Growing Environment Concerns

The recyclable cups market is estimated to be valued at US$ 26.34 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

The recyclable cups market is driven by growing concerns regarding environmental impact of single-use plastics. Consumers are increasingly preferring recyclable and sustainable packaging over conventional plastics due to rising awareness. Furthermore, strict regulations against plastic usage especially in cities and public places is prompting beverage chains and food businesses to rely more on recyclable cups. This is positively impacting the market growth.

Key Market Trends: Biodegradable cups made from paper, plant-based materials, and polylactic acid (PLA) are gaining traction in the recyclable cups market. Their biodegradable nature reduces environmental footprint. Major quick serving restaurants and café chains have started utilizing biodegradable hot and cold cups to attract conscious customers. Furthermore, customized and printed cups with logos are being leveraged by businesses for branding and promotions. Product innovations including insulated recyclable cups, lid attachments, and microwave friendly cups are also being introduced to enhance functionality. More coverage can be found in the sample copy.

Paper Cups Market Opportunities: The paper cups segment accounted for the largest market share of around 45% in 2019 and is projected to grow at a CAGR of 5.2% during the forecast period. Paper cups are widely used in restaurants, cafes, quick service restaurants and other occasions needing single-use disposable cups. The abundantly available raw materials and ease of production make paper cups economical and biodegradable. In addition, increased focus on sustainability is propelling the demand for paper cups globally.

The below 8 oz capacity segment dominated the market in 2019 with a share of over 60% and is estimated to exhibit a CAGR of 5.4% from 2024 to 2031. Cups with capacity below 8 oz are majorly used in households, parties, picnics, and other outdoor activities. Their lightweight and affordability increase their preference among consumers. They also help reduce plastic wastage as smaller capacity cups use less raw material for production. Thus, the below 8 oz segment will continue to lead the recyclable cups market during the forecast period.

Key Recyclable Cups Market Takeaways: The global recyclable cups market size was valued at USD 26.34 billion in 2024 and is anticipated to witness a CAGR of 5.6% during the forecast period 2024-2031. Rising awareness about environment protection and non-biodegradable waste disposal is expected to fuel the demand for recyclable cups.

On the basis of material, the paper segment is expected to hold a dominant position, accounting for over 45% of the global market share owing rising preference for sustainable packaging solutions.

By capacity, the below 8 oz segment dominates the market with a share of over 60% as cups with smaller capacity use less raw material and help reduce plastic wastage.

North America holds the major recyclable cups market share owing to stringent government regulations regarding environmental protection.

Competitor Insights: BioPak, Stora Enso, Eco-Products Inc, FrugalPac Limited, Berry Global Group

Recent Developments in Recyclable Cups Market: In June 2023, leading paper cup manufacturer Dixie announced plans to increase its paper cup production capacity by 15% by mid-2024. The company noted high and sustained demand for paper cups from quick service restaurants, coffee shops and other foodservice operators amid growing consumer preference for more sustainable packaging options. Dixie reported a strong double digit revenue growth for paper cups in the first half of 2023 compared to the previous year. Other major paper cup suppliers like Huhtamaki and International Paper also highlighted plans to expand their paper cup manufacturing lines across regions to meet the boom in demand. The increased shift towards paper cups is driven by customers’ focus on reducing plastic waste and offering eco-friendly alternatives.

In July, Waste Management began weekly recycling of paper cups in mix with other paper fibers for over 10 million Americans. This helps keep useful paper resources out of landfills. And 25 communities in Wisconsin started a pilot accepting all paper cups alongside other recyclables thanks to a grant from technology firm Kimberly-Clark. Full coverage of the report available here.

Summary

TDS NEWS