The disposable cups market is estimated to be valued at USD 16.53 Bn in 2024 and is expected to reach USD 27.01 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031. The disposal cups market is expected to witness positive trends as rising demand from corporate offices, education institutes, and cafes are pushing sales.

Market Driver - Increased Demand for Convenient Products due to Urban Lifestyles and On-the-Go Beverages

Today, on-the-go consumption has become the norm whether it is a quick coffee in traffic or a soft drink while traveling to work. Disposable cups offer the perfect solution for this scenario. They allow people to drink from anywhere without having to find a proper receptacle or wash up later. Millions of commuters can be seen grabbing a quick cup of coffee each morning from stores lining their routes to work. Even office pantry shelves stock up on disposable cups for casual meetups.

The convenience afforded by disposable cups is a big factor driving their demand. In today's always-busy world, saving even a few minutes means a lot.

The cups allow fluid consumption irrespective of location or availability of other items. The trend of working remotely and on the move has further popularized their usage. Whether walking, driving, or traveling by public transport, people reach for disposable cups to fulfill their fluid needs without hassle. This has supported widespread growth of the disposable cups market.

Market Driver - Expanding Consumption Capacities Drives Disposable Cups Market

Developing countries present a major growth opportunity for disposable cup manufacturers. Rising incomes in these regions are empowering larger segments of the population to participate in the consumer economy. Both international and local chains serving coffee, soft drinks and other beverages are experiencing fast growth in the developing world. This is generating steep demand for on-the-go and takeaway, disposable cups.

At the same time, urbanization is shifting population demographics towards cities in developing regions. Young consumers especially are aspirational and open to new experiences including branded beverages. Globally dominant fast-food chains as well as outlets run by local players are cropping up rapidly in cities across Asia, Africa, and Latin America to cater to this. Their adoption of disposable cups acts as a catalyst for positive disposable cups market forecast.

Market Challenge - High Production Costs of Biodegradable Alternatives

One of the key challenges currently being faced by the disposable cups market is the high production costs associated with biodegradable alternatives compared to traditional plastic cups. While there is a growing consumer demand for more eco-friendly and sustainable cup options, biodegradable materials like paper, corn starch, wood fiber etc. require expensive production processes.

Manufacturers need to invest heavily in R&D, sourcing sustainable raw materials, and setting up production infrastructure that can handle compostable cups on a large commercial scale. This increases the per unit manufacturing costs significantly. Passing on the entire additional costs to customers also risks making biodegradable cups unaffordable for many businesses and consumers.

Manufacturers in the disposable cups market will have to work on improving yields, lowering material wastage and optimizing production workflows to reduce the costs to a level where both producers and customers see tangible value. Until biodegradable cups can match the costs of plastic variants while also addressing performance and functional parameters, widespread adoption is likely to remain slow paced.

Market Opportunity - Growing Emphasis ON Sustainable Production AND Biodegradable Products FOR Market

Growing consumer demand for sustainable packaging solutions and biodegradable products presents a major opportunity for players in the disposable cups market. With global campaigns to reduce plastic pollution and the shifting regulatory landscape supporting eco-friendly alternatives, there is likely to be a noticeable long-term uptrend towards compostable cup sales.

Manufacturers in the disposable cups market are focusing on investments to commercialize new biomass-based materials and lowering production costs of existing biodegradable materials. They can focus on promoting credentials like third party certifications, carbon footprint reductions achieved etc. to win over environment conscious buyers.

Overall, transitioning to a circular economy model that leverages sustainable inputs as well as end-of-life management for compostable cups holds significant potential for future growth of the disposable cups market.

Focus on eco-friendly and sustainable products:

Many major players like Dart Container Corporation, Georgia-Pacific and Huhtamaki have focused on developing eco-friendly disposable cups made from renewable and recycled content. For example, in 2021 Dart introduced poly-lined and poly-coated cups with 30-50% plant-based content.

Expanding product portfolio:

Companies like Anchor Packaging expanded their product offerings to include not just regular disposable cups but also cold cups, lids, carriers etc. For example, in 2018 Anchor launched a new line of insulated cold cups with sip-top lids to capture the growing on-the-go beverage consumption.

Strategic acquisitions:

Large players acquired smaller firms to consolidate market share. For instance, in 2020 Huhtamaki acquired 100% stake in US based Dart Container to become a global leader. Earlier in 2016, Georgia-Pacific purchased Doe Creek's foodservice packaging business.

Focus on emerging markets:

Companies in the disposable cups market dedicated marketing efforts to fast growing regions like Asia Pacific and South America. For example, Georgia-Pacific expanded its cup manufacturing plants in China, India and Brazil between 2015-2020 as demand rose in those countries.

Insights, By Product: Paper Cups Dominates the Product Segment

In terms of product, paper cups are projected to hold 61% share of the disposable cups market in 2024. This is due to its widespread popularity and eco-friendly attributes. Paper cups are the preferred choice for both hot and cold beverages for various applications across commercial, institutional, and household sectors. The vast majority of quick-service restaurants, cafes, and foodservice establishments opt for paper cups as they are affordable, sturdy enough to hold liquids, and can be discarded easily after single use.

Paper cups are perceived as the most sustainable disposable option compared to plastic and foam variants. Growing environmental consciousness among consumers and organizations has augmented the demand for paper cups in recent years.

Another key factor driving the paper cup segment is the wide scope of customization. Vendors in the disposable cups market provide paper cups in various shapes, sizes, and designs to meet specific branding and packaging needs of customers. This lucrative opportunity for creative self-expression and promotional outreach has made paper the most preferred substrate for disposable office stationery, party supplies, and more.

Insights, By End User: Commercial Segment Leads in Consumption of Disposable Cups

Among end user categories, the commercial segment holds 81% share in the disposable cups market in 2024. Quick-service restaurants, cafeterias, coffee and snack shops widely utilize disposable cups for on-the-go consumption of beverages and other hot/cold food items. Busy lifestyle of consumers and prevalent food-on-the-go culture has amplified the demand for disposable cups from commercial establishments.

Disposable cups provide commercial outlets an affordable and hygienic way to serve a high volume of customers in a short time span. They eliminate needs for repeated washing and reuse of glass/ceramic cups. This helps free up space and reduce turnaround periods, thereby enhancing operational efficiency.

Ease of logistics and supply chain management gives disposable cups an added advantage for commercial sector players. Large volumes can be delivered, stocked and dispensed with minimum manual handling. Self-contained characteristic of disposable cups allows players in takeaway/delivery vertical to cheaply distribute products without worrying about cup return or damage.

Considering active lifestyles and fast expansion of QSR chains, cafes and retail food sector, the commercial segment will likely maintain its pole position as the major end-user industry powering growth of the disposable cups market over the coming years.

• In 2023, Korea consumed 940 million disposable cups, highlighting the global demand surge post-COVID for disposable products in food and beverage sectors.
• Asia Pacific dominated the disposable cups market in 2023 with a 36% share, and is expected to maintain the fastest growth rate, driven by rapid urbanization in countries like India, Japan, and China.

The major players operating in the disposable cups market include Huhtamäki Oyj, Dart Container Corporation, Berry Global Group Inc., Pactiv LLC, WestRock Company, DUNI AB, Genpak LLC, Go-Pak UK Ltd., ConverPack Inc., and Benders Paper Cups.

• In May 2024, Yee Wah Global transitioned to eco-friendly disposable cups and utensils after the plastics ban, investing in sustainable solutions. This change came after the government of Hong Kong implemented a phased ban on single-use plastics, which affected the sale and supply of plastic tableware.
• In April 2024, Starbucks introduced redesigned plastic cups that use 10-20% less plastic. This move is part of their broader sustainability goals, aiming to significantly reduce waste and their environmental footprint by 2030. The redesigned cold cups are projected to prevent over 13.5 million pounds of plastic from ending up in landfills each year.
• In November 2023, Mitsubishi Chemical Group's bio-based, compostable polymer, BioPBS™, was adopted for use in paper cups as part of Japan's sustainability initiatives. These cups are being used by FOOD AGRI NEXT LAB in the Yatsugatake region, where they will be composted alongside food residue and fallen leaves as part of a recycling program.

• By Product
  • Paper
  • Plastic
  • Foam
• By End User
  • Commercial
  • Institutional
  • Household