Global Disposable Cups Market to Hit Sales of $22.08 Billion

Disposable Cups

(Credit: Canva)

by | Dec 21, 2022

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Disposable Cups

(Credit: Canva)

In 2021, the market for disposable cups was estimated to be worth $14.82 billion, and by 2028, it is anticipated to be worth $22.08 billion, a CAGR of 5.7%. (2022–2028), according to a recent report.

For the study, SkyQuest Technology Consulting Pvt. Ltd’s (SkyQuest) industry analysts looked at four key factors impacting the disposable cups market: Growth in Asia Pacific, consolidation in the U.S. beverage market, increasing awareness of sustainability and waste reduction, and increasing awareness of the health risks posed by plastics. The Asia Pacific region will account for the majority of the $22.08 billion, with China alone expected to generate $3.8 billion in sales by 2028. The beverage market in the United States is expected to grow more slowly than the overall market, but it will account for 26% of total global sales by 2028.

Additional Data

The SkyQuest 2022 survey produced some intriguing findings about the state of the industry. According to the report, a large majority of respondents favor innovation in the disposable cup market, with 46% saying they are looking for new and innovative products and ideas. Furthermore, nearly two-thirds (64%) of respondents said they would be willing to pay more for a better disposable cup. However, many respondents expressed concern about the market’s long-term viability.

Almost half (48%) of respondents expressed concern about the amount of waste generated by disposable cups, while 43% expressed concern about the pollution caused by disposable cups.

Current State of the Market

The disposable cup market is rapidly expanding as a result of the Environmental Protection Agency‘s (EPA) ban on Styrofoam packaging, which has forced companies to find alternative materials for their cups. The hospitality industry, which is expected to account for 43% of the overall market in 2021, is driving growth.

Plastic is expected to outperform paper in the coming years due to easy availability, higher strength, lower cost, and large-scale production capabilities globally. However, the paper cup segment is expected to grow faster than the plastic disposable cup market over the next seven years, due to increased efforts to reduce plastic pollution by prohibiting single-use plastic. Recently, India implemented a blanket ban on single-use plastic, forcing consumers to rely on paper cups for coffee, tea, and other cold and hot beverages.

Driving Forces

According to the study, several key factors will drive the market, including an increase in waste management and recycling initiatives, increased retail sales of food and beverages in convenience stores and food service outlets, and increased consumer awareness about the negative environmental impacts of single-use plastics.

Manufacturers are focusing on developing innovative products that improve performance or appeal to consumers in order to meet the market demand for reusable products. Some cups, for example, include a built-in filter that helps reduce the amount of waste discharged into waterways. Others feature leak-proof seals to prevent spills. Others are made of recyclable materials such as cardboard or paper.

Government initiatives can support reusable cup uptake by businesses and customers while also increasing awareness about the environmental advantages of doing so. California, for instance, has implemented legislation requiring companies with Environmental Health Control Program permits to provide carryout restaurants with drink containers that can be used just once and either recycled or composted, rather than single-use plastic containers.

Similar to this, cities and towns throughout North America, Europe, and Asia Pacific are progressively putting into place programs that reward consumers who bring their own reusable cups or bottles to restaurants with cash incentives (such as discounted drinks or free meals).

Additionally, another important factor shaping the disposable cup market is growing awareness of sustainability and waste reduction. Starbucks, for example, has been working to reduce its environmental impact since 2007 by offering composting programs in hundreds of its North American stores. Other businesses are following suit: Colgate-Palmolive announced earlier this year that Dasani now has composting bins in over 1,000 convenience stores across the United States.

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