US Demand for Foodservice Disposables to Reach $18.8 Billion in 2015

US demand for foodservice disposables is expected to increase 4.1 percent per year to $18.8 billion in 2015. Growth will be driven by accelerating foodservice revenue increases resulting from a rebound in the broader US economy, which will stimulate increased frequency of dining out, thereby creating opportunities for disposables. Demographic trends, such as high numbers of households where all adults work, growth in empty nest households, and the relatively small average US household size, will tend to favor higher spending for meals eaten or prepared away from home. These and other trends, including market share and product segmentation, are presented in Foodservice Disposables, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Packaging products will achieve the fastest gains, with demand expected to climb at a 4.5 percent annual pace to $8.8 billion in 2015. Advances will be driven by a healthy outlook for the large limited service segment, which accounts for half of overall restaurant revenues but generates a much higher share of foodservice disposables demand. 

Demand for serviceware, including cups, dinnerware, utensils and other products, is projected to increase 4.0 percent per year to $8.6 billion in 2015. Gains will be supported by above-average growth for limited service restaurant and retail establishment revenues, and steady demand in institutional and other markets. Other factors providing momentum will be the increased focus on gourmet coffee and specialty cold drinks by quick service restaurants and convenience stores.