Paper Cups Market Size, Share, By Type, Wall Type, Coatings, Capacity, End-User, and Region - Trends, Analysis, and Forecast till 2035

• The paper cups market size will surpass USD 23.1 Billion by 2035.
• It is indicated that the market was valued at USD 14.6 Billion in 2024.
• It is advancing with a CAGR of 5.2%.

Paper cups are disposable containers specifically designed for serving beverages, including hot drinks such as coffee and tea, as well as cold drinks such as juices and soft drinks. The target market growth is experiencing significant growth, which is driven by the increasing consumer demand for sustainable and eco-friendly packaging solutions.

For instance, in December 2021, India's largest network of tea franchise outlets, Tea Time Group, launches 100% biodegradable paper cups as it doubles down its efforts to grow its pipeline of customers. The company has commenced offering people natural, compostable, and safe disposable cups that are hygienic. It's the first time the company has taken the initiative to expand its products in a different field to reach more customers and serve the nation. 

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024 as it is driven by a large population, rising disposable incomes, and increasing demand for sustainable packaging solutions across the region.
• North America is expected to be the fastest-growing market during the forecast period as the increasing consumption of on-the-go beverages and supportive government legislation promoting biodegradable packaging are key factors in the region.
• By type, the hot paper cups segment is expected to account for the largest share of the market in the upcoming years as advances in manufacturing processes have led to the development of high-quality hot paper cups featuring enhanced insulation properties.

Key Drivers of Target Market:

Growth of the Food Service Industry is Expected to Boost Market Growth

The expansion of quick-service restaurants (QSRs), cafes, and food delivery services is significantly boosting the demand for paper cups industry. As consumer lifestyles become more fast-paced, the need for convenient, disposable beverage containers continues to rise.   

• For instance, in October 2023, M&S Food has launched a new paper fibre coffee cup becoming the first major high street coffee retailer to offer its delicious coffee and all hot drinks in 100% paper, plastic-free, and easily recyclable coffee cups and lids for customers. The brand new and exclusive cup is new in the market and available across twenty sites including M&S Cafés, vended coffee points, marketplaces within its Food halls, such as Stratford City, London, Leeds White Rose, and Cheshunt, and will be rolling out to every M&S Café in the coming months in 2023.

Rising Popularity of Hot Beverage Culture is expected to Fuel Market Expansion

The increasing consumption of coffee and other hot beverages is driving the demand for specialized hot beverage paper cups, contributing to target market growth.   

• For instance, in March 2023, Paper cups for hot beverages can finally be truly sustainable as, phade which is the world’s first-ever paper cup lined up with PHA (polyhydroxyalkanoate), an innovative new biopolymer derived from the fermentation of canola oil that is home and industrial compostable and marine biodegradable. Created by WinCup, Inc., the new phade paper cup is an advanced alternative to traditional paper cups, which unbeknownst to most consumers, are coated in fossil-fuel based plastic in order to hold beverages, and therefore unable to be recycled or composted. 

Restraints:

Fluctuations in Raw Material Prices Hinders the Target Market Growth

Geopolitical tensions and supply chain disruptions can lead to significant fluctuations in the prices of raw materials used in paper cup production. Further this volatility impacts profit margins for manufacturers, hindering the paper cups market growth.  

• Counterbalance Statements: The growing global demand for eco-friendly and biodegradable products provides a strong incentive for manufacturers to innovate and find cost-effective sourcing solutions.  

Opportunities & Market Trends:

Prospects for Personalisation and Branding Provides Future Growth Opportunities

• The demand for customized and branded paper cups is on the rise particularly among businesses looking to enhance their brand visibility. Offering unique designs, graphics, and sizes can attract customers and differentiate products in a competitive market. This trend is particularly prominent in the food service industry, where branding plays a crucial role in consumer choice.

The paper cups market is classified into type, wall type, coatings, capacity, end-user, and region.

Type:

Paper cups systems market by type is categorized into hot paper cups and cold paper cups. The hot paper cups segment is expected to dominate over the forecast period as advances in manufacturing processes have led to the development of high-quality hot paper cups that offer better insulation and durability.

• For instance, in February 2024, Linstol has launched its new Super Cool Cup, building on the success of the original Super Cup for hot beverages. The Super Cool Cup has a 40% reduction of plastic content compared to conventional paper cup options and is universally recyclable due to its bio based plastic mineralized coating option making the cup bio based, recyclable and compostable. The cups are also easily stackable to maximize galley cart space, streamlining the beverage service for crew members.

Wall Type:

By wall type, the paper cups market is segmented into single wall paper cups, double wall paper cups, triple wall paper cups, and others. The double wall paper cups segment holds the dominant paper cups market share as double walled designs help maintain the temperature of hot beverages while preventing burns and enhancing user experience.

Coatings:

By coatings, the paper cups market is divided into polyethylene (PE) coatings, polylactic acid (PLA) coating, water-based coating, and others. The polyethylene (PE) coatings segment dominates the focused market share due to the widespread use of PE coatings for their effective moisture barrier properties, which allow paper cups to hold both hot and cold beverages without leaking.

• For instance, according to the Data Published by NINGBO SURE PAPER CO., LTD., in August 2024, Polyethene (PE) coating has long been the backbone of the paper cup industry. Its ability to hold a wide range of beverages, from hot coffee to cold water, without compromising structural integrity has made it the preferred choice for many manufacturers.

Capacity:

By capacity, the Paper cups market is segmented into (Up to 150 ml, 151 to 350 ml, 351 to 500 ml, and Above 500 ml). The Up to 150 ml segment dominates the focused market share as it is driven by the increasing demand for smaller beverage servings, particularly in coffee shops and fast-food outlets where quick, on-the-go consumption is prevalent.

End User:

Based on end-user, the market is categorized into households, quick service restaurants, and others. The target market share is dominated by the quick service restaurants due to the increasing consumption of on-the-go beverages and the growing number of QSRs that rely heavily on disposable paper cups for serving drinks.

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This region is expected to hold the largest market share as it is driven by a combination of increasing consumer demand for sustainable packaging solutions and the expansion of the food service industry.

North America: This region is considered as fastest-growing region in focused market due to increasing military expenditures and modernization efforts among various countries. Further, the growing focus on enhancing defense capabilities in response to regional tensions creates substantial demand for GNSS anti-jamming technologies. 

• For instance, in September 2024, Seda North America is launching its innovative compostable Double Wall cold cups on the North American market, paired with the revolutionary paper EcoFit lid. These cups and lids have been specifically designed to meet the demands of rapidly changing legislation that increasingly favors more sustainable packaging solutions. The new offering provides a game-changing solution for businesses that need to adapt swiftly to new environmental regulations. 

Paper Cups Market Report Scope:

Segmentation:

By Type:

• Hot Paper Cups
• Cold Paper Cups

By Wall Type:

• Single Wall Paper Cups
• Double Wall Paper Cups
• Triple Wall Paper Cups
• Others

By Coatings:

• Polyethylene (PE) Coatings
• Polylactic Acid (PLA) Coating
• Water-Based Coating
• Others

By Capacity:

• Up to 150 ml
• 151 to 350 ml
• 351 to 500 ml
• Above 500 ml

By End-User:

• Households
• Quick Service Restaurants
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the paper cups market include Dart Container Corporation, Huhtamaki Oyj, Georgia-Pacific Consumer Products LP, and among others. Paper cups market is highly competitive, with well-established companies, which take advantage of technology developments and sustainability trends to grab expansion factors. The competition between major competitors is anticipated to heat up as customer preferences change toward eco-friendly products, boosting additional innovation and target market growth in the years to come.    

For instance, in February 2023, Go-Pak UK, the global disposable packaging manufacturer, has launched a new design of paper vending cup. The Go-Vend range from Go-Pak UK consists of single wall 7oz, 9oz and 12 oz cups. These will run alongside the popular plain single, double and triple wall cups that are already available. The range is completed by accessories, such as sip lids and carry trays.  

List of Key Players in the Market:

• Dart Container Corporation
• Huhtamaki Oyj
• Georgia-Pacific Consumer Products LP
• Benders Limited
• Go-Pak UK Ltd
• Graphic Packaging International, LLC
• Pactiv LLC
• The Printed Cup Company
• Ishwara
• Conver Pack, Inc
• Care Polypack
• BTP Eco Products Pvt. Ltd.
• Jiangsu Yinwang New Material Technology Co., Ltd.
• Greiner Packaging International GmbH
• Hotpack Packaging Ind. LLC

• In December 2024, to further reduce waste, Starbucks launched FSC certified paper cups and cutlery made from biomass materials for to-go orders and began serving iced beverages in resin cups for customers to enjoy in store.
• In October 2024, Southwest Airlines has replaced the plastic cups it used to serve cold beverages during flights with new cups made with a pulp blend of 75% bamboo and 25% paper. Southwest’s new fiber-based cold cups replace a plastic version that was made from polypropylene. The new cup has a polyethylene lining but is made from 93% non-plastic materials.
• In February 2024, Australians will now have access to recycling instructions on qualifying paper cups, as there is a partnership between the Australian Packaging Covenant Organisation’s (APCO) Australasian Recycling Label (ARL) program and paper cup recycling program Simply Cups. Simply Cups, acknowledged as an ‘Alternative Destination’ under the ARL program, has introduced a distinctive ‘Drop Off Only’ logo on qualifying paper cups, which directs consumers to recycle their paper cup at one of more than 1500 collections points across Australia.
• In November 2023, Nissin Foods’ Cup Noodles is introducing a 40% recycled fiber cup eliminating the necessity for a plastic wrap and features a sleeve made with 100% recycled paper. The new packaging is polystyrene-free and will be rolled out across all flavors of Cup Noodles. The updated packaging for the on-the-go cup is microwavable, making the brand more convenient for consumers than previous applications.
• In September 2022, Huhtamaki and Stora Enso have joined forces to launch a new paper cup recycling initiative, The Cup Collective. The programme, which is the first of its kind in Europe, aims to recycle and capture the value of used paper cups on an industrial scale. The initiative will first be applied throughout the Benelux. The Cup Collective has extended an open invitation to partners throughout the supply chain to participate in the pursuit of a comprehensive European solution, with the goal of establishing new benchmarks for the collection and recycling of paper cups throughout Europe.

Analyst View:

Paper cups market is poised for significant growth as it aligns with evolving consumer preferences and sustainability mandates. The increasing awareness about environmental issues, coupled with strict government regulations on single-use plastics, has accelerated the shift towards biodegradable and compostable alternatives, such as paper cups which further boosts focused market growth in upcoming years.

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