US cup & lid demand to reach US $10 billion in 2018

US demand for cups and lids is projectedto reach $10.0 billion in 2018, withgrowth driven by above average gains forfood packaging cups and an improvedoutlook for foodservice revenue growthrelative to the 2008-2013 period, as per Reportlinker. Inparticular, cup and lid demand will bepropelled by the important role ofbeverages in restaurants and stores asrevenue generators, along with thegrowing focus on specialty beveragesamong foodservice operators as a means of offsetting declining consumption of carbonated drinks. While drinking cups will continue todominate, the fastest gains are anticipatedin the packaging cup segment due tofavorable consumption trends in anumber of applications, along withadvantages of convenience, portability,and portion control. The growing patternof snacking in place of traditional mealsand a widening definition of snack foodswill be advantageous for single portionpackaging formats such as cups.Among drinking cup materials, papercups will experience the fastest growth,reflecting a shift in the competitivelandscape stemming from environmentalconcerns about foam cups, growingrestrictions on polystyrene foam disposables,increasing pressure from environmentalgroups, and switches from foamto paper cups by McDonald's and otherhigh volume foodservice providers.Recent and/or planned major expansionsin paper cup capacity are being undertakenby key suppliers to meet the expectedupswing in US foodservice papercup demand. In addition, plastic cups willcapture some share of hot drink applicationsas a result of the commercializationof recyclable insulated plastic cups. Lid demand growth will outpace that ofcups, fueled by expanding carryout foodand beverage sales from restaurants andretail stores, an increasing percentage ofdrinking cups utilizing lids, heighteneddemand for costlier specialty lids, andhealthy increases for single servingpackaging cups, all of which have sometype of lid or flexible lidding. Growth inthe level of drinking cups with lids willreflect an increasing volume of beveragespurchased for offsite consumption,consumer tendencies to drink beverageson the go (e.g., in cars), and a growingfocus on coffee in quick service restaurants,coffee and snack shops, etc. The foodservice market, which represented67 percent of demand in 2013,will remain by far the largest cup and lidmarket. Among trends driving growth forcups and lids are the increased focus onspecialty beverage offerings in quickservice and other restaurants, the growingpresence of innovative fountain drinkdispensers that enable custom flavor combinations,and the popularity of menuitems that use cups, such as ice cream,frozen yogurt, oatmeal, and fruit cups.Solid gains in the food and beveragepackaging market will be driven byfavorable consumption trends for variousproducts commonly packaged in cups,such as yogurt, and coffee and tea forsingle cup brewing systems. In addition,the growing prominence of snacks asalternatives to meals and rising interest inhealthy foods and snack options willsupport heightened demand in a varietyof applications that can be packaged in asmall sized format such as a cup.