Worldwide demand for cups and lids is projected to rise 5% pa to nearly US$26 bln in 2017, as per Freedonia. Advances will be driven by above average gains for food and beverage packaging cups as well as a favorable outlook for global foodservice revenues. In particular, increases will be fueled by growth in the quick service restaurant industry, which will remain the main user of disposable cups and lids. Other factors contributing to rising cup and lid demand include an upsurge in world food and beverage processing output, increased consumer spending on packaged food worldwide, and the growing presence of environmentally friendly cups, which tend to cost more than conventional products. Food service will remain the largest cup and lid market, accounting for more than three-fifths of overall market value through the forecast period. While the large, established foodservice industry and market maturity in developed regions will prevent faster gains, several trends will bolster cup and lid demand. These include expanded beverage offerings in quick service and other restaurants, and the significant growth potential in countries with underdeveloped foodservice industries. Cup and lid demand will also be supported by the rising number of coffee shops worldwide and the continued popularity of coffee as a beverage consumed away from home. Moreover, value gains will be aided by the prevalence of costlier specialty lids in coffee and snack shops. Such lids typically have a raised design to accommodate drinks with whipped or foamy toppings that rise above the cup lip. However, growing concerns about the environmental impact of disposable coffee cups will have a moderating effect on cup and lid demand. The fastest growth will be seen in the food and beverage packaging market, reflecting advantages of convenience, portability, and portion control of food packaging cups. Healthy eating trends will provide further upward momentum for yogurt, the largest packaging cup end use. On the other hand, gains will be moderated by competition from pouches in applications such as snacks, candy, sauces, and condiments. The lack of widespread retail infrastructures in many developing areas will limit overall gains in the retail sector, while the aging of the population in developed countries will support gains in health care applications, as older age groups tend to require more medical and dental visits. Overall, the most rapid increases in cup and lid demand will be registered in the world's developing regions. Demand in Asia, the Africa/Mideast region, Eastern Europe, and Central and South America will rise faster than the global average, boosted by rising living standards and the rapidly growing number of limited service restaurants serving on-the-go food and beverages packaged in cups and using lids. The highest growth rates are expected in India and China, followed by Indonesia, Russia, Brazil, and Mexico. In contrast, market maturity in developed countries will moderate overall growth. Still, demand in the US, Western Europe, Japan, and other developed areas will be supported by the greater use of relatively expensive biodegradable, compostable, and recycled- content products.
The growing foodservice industry is driving demand for cups and lids in USA, with demand estimated to expand 4.% pa to US$10 bln in 2018, according to The Freedonia Group. Demand will be propelled by the important role of beverages as revenue generators for restaurants and a growing focus on specialty beverages among foodservice operators. These factors will drive growth for higher value cup and lid products, such as paper hot cups, polyethylene terephthalate (PET) cups and specialty lids. In addition, prospects for 'costlier types of cups' will be strengthened by the growing number of cities enacting bans or restrictions on foamed polystyrene disposables and by restaurant chains transitioning away from foam cups as part of corporate sustainability initiatives. In particular, cup and lid demand will be propelled by the important role of beverages in restaurants and stores as revenue generators, along with the growing focus on specialty beverages among foodservice operators as a means of offsetting declining consumption of carbonated drinks. While drinking cups will continue to dominate, the fastest gains are anticipated in the packaging cup segment due to favorable consumption trends in a number of applications, along with advantages of convenience, portability, and portion control. The growing pattern of snacking in place of traditional meals and a widening definition of snack foods will be advantageous for single portion packaging formats such as cups. Among drinking cup materials, paper cups will experience the fastest growth, reflecting a shift in the competitive landscape stemming from environmental concerns about foam cups, growing restrictions on polystyrene foam disposables, increasing pressure from environmental groups, and switches from foam to paper cups by McDonald's and other high volume foodservice providers. Recent and/or planned major expansions in paper cup capacity are being undertaken by key suppliers to meet the expected upswing in US foodservice paper cup demand. In addition, plastic cups will capture some share of hot drink applications as a result of the commercialization of recyclable insulated plastic cups. Lid demand growth will outpace that of cups, fueled by expanding carryout food and beverage sales from restaurants and retail stores, an increasing percentage of drinking cups utilizing lids, heightened demand for costlier specialty lids, and healthy increases for single serving packaging cups, all of which have some type of lid or flexible lidding. Growth in the level of drinking cups with lids will reflect an increasing volume of beverages purchased for offsite consumption, consumer tendencies to drink beverages on the go (e.g., in cars), and a growing focus on coffee in quick service restaurants, coffee and snack shops, etc. The foodservice market, which represented 67% of demand in 2013, will remain by far the largest cup and lid market. Among trends driving growth for cups and lids are the increased focus on specialty beverage offerings in quick service and other restaurants, the growing presence of innovative fountain drink dispensers that enable custom flavor combinations, and the popularity of menu items that use cups, such as ice cream, frozen yogurt, oatmeal, and fruit cups. Solid gains in the food and beverage packaging market will be driven by favorable consumption trends for various products commonly packaged in cups, such as yogurt, and coffee and tea for single cup brewing systems. In addition, the growing prominence of snacks as alternatives to meals and rising interest in healthy foods and snack options will support heightened demand in a variety of applications that can be packaged in a small sized format such as a cup.