World demand for foodservice disposables is projected to grow 5.4% pa to over US$53 bln in 2015. Gains will be driven by gains in the foodservice industry, which will accelerate from the rates seen over the 2000-2010 period due to improvements in global economic conditions, increasingly fast-paced lifestyles and growth in away-from-home food spending, as per by Freedonia Group. Disposable serviceware - including single-us e cups, dinnerware and utensils - will remain the largest product type through the forecast period and beyond. However, the fastest demand growth is expected in the disposable packaging segment, which includes foodservice containers, lids and domes, wraps, bags and trays. Demand for disposable foodservice packaging will be fueled by advances in the limited service restaurant sector, which relies heavily on single-use packaging. Beyond eating and drinking places, good opportunities for disposables will be found in the retail market, as grocery and convenience stores expand their offerings of prepared foods. In 2010, single-use service ware accounted for 54% of the global foodservice disposables market. Gains will be supported by above-average growth in quick service restaurant and retail establishment revenues. Other factors providing momentum include the increased focus on gourmet coffee and specialty cold drinks by limited service restaurants and convenience stores. Value advances will also benefit from heightened interest in higher-cost environmentally friendly products, especially in developed regions. Some of the best opportunities will exist in the disposable packaging segment, boosted by gains in the fast food industry, which uses large quantities of disposables for packaging foods consumed both onsite and off-site. In addition, the popularity of takeout food from full service restaurants will provide a further boost to single-use packaging demand, especially given that these restaurants tend to use higher-value disposable containers designed to maintain food temperature and minimize leakage. Increased catering activity by full service restaurants, and home delivery and takeaway outlets will also necessitate heightened requirements for disposable packaging.
The Asia Pacific region will see above average gains in foodservice disposables demand, fueled by advances in the limited service restaurant sector. The fastest growth will be seen in Asia, with India, China and Indonesia expected to experience the most rapid increases in the world. Between 2010 and 2015, China alone will account for 28% of global foodservice disposables market value gains and will surpass Japan to become the world's second largest market. Central and South America, Eastern Europe, and the Africa-Mideast region will also experience above average gains, but from smaller bases. In North America and Western Europe, markets are more mature and somewhat saturated. Nonetheless, opportunities will still be found in developed countries, especially for higher-cost degradable, recycled content and other green products in areas with bans on polystyrene foam disposables. The US, which accounted for 37% of global foodservice disposables sales in 2010, will remain by far the largest national market due to its large quick service restaurant sector. US demand for foodservice disposables is expected to approach US$20 bln in 2017. Growth will be driven by accelerated foodservice revenue increases relative to the performance of the recession impacted 2007-2012 period, reflecting an improved outlook for consumer spending in tandem with continuing economic expansion, which will drive increased frequency of restaurant visits. Packaging products will achieve the fastest gains through 2017, driven by above average revenue increases in the limited service segment, which accounts for over half of restaurant revenues but generates a much higher share of foodservice disposables demand. Expanding menu options in limited service restaurants, longer hours to include breakfast and snacking beyond traditional meal times, and ongoing development of new restaurant concepts will also bode well for related packaging. The popularity of takeout food from full service restaurants and greater prepared food options from retail stores will also fuel packaging demand. Packaging that maintains freshness and enhances the visual appeal of prepared foods will be a consideration for packaging demand in the retail market. Service ware gains will lag the overall average as a result of an expected moderation in material prices following spikes in recent years, along with rising competition from Asian imports in some segments. Nonetheless, prospects will be supported by a favorable outlook for limited service restaurant and retail establishment foodservice revenue growth, along with steady demand in institutional and other markets. Also supporting gains will be the increased focus on gourmet coffee and specialty cold drinks and increased catering activity by restaurants. Robust advances are anticipated for degradable packaging and service ware from a relatively small base, the result of heightened prominence of environmental issues, efforts by foodservice establishments to differentiate themselves, and heightened local bans on foamed polystyrene disposables. Eating and drinking places, which held two-thirds of foodservice disposables demand in 2012, are by far the largest market for foodservice disposables. While growth in this market will be fueled by a continuing recovery in the broader economy as well as healthy prospects for limited service restaurants and changes in the mix of menu items, the retail and vending market will represent the fastest growing disposables market through 2017. Gains will be driven by the growing focus on prepared foods in supermarkets, warehouse clubs, and convenience stores, as retailers strive to differentiate themselves and regain some share of sales that have been lost to restaurants. Among restaurant types, fast casual restaurants will record the fastest advances as they continue to gain share from quick service restaurants and casual dining restaurants. Also driving the popularity of fast casual restaurants is their appeal to two important demographics: aging baby boomers and younger baby boomers.