Global Cups & Lids

Advances in Food Processing and Foodservice Boost Demand for Cups & Lids

Global demand for cups and lids is projected to increase 3.9% per year to nearly $32.4 billion in 2022. Worldwide, growth will be driven by advances in foodservice and food processing activity, and increased consumer spending rates.

Key Findings in the Global Cups & Lids Study

Developed Markets Influenced by Environmental Considerations

In developed regions, the product mix is being reshaped by environmental considerations, some prompted by regulatory actions, some by voluntary actions on the part of major end users, such as large quick service restaurant (QSR) chains and coffee shop franchises:

• In France, there is legislation in place to mandate compostability standards for single-use serviceware, including plastic cups – scheduled to go into effect in 2020.
• Several countries have forthcoming bans on disposable cups, mostly relating to plastic cups.
• Dunkin’ Donuts is the most recent among many foodservice chains to announce a switch from foam cups to paper hot cups.
• In the UK, Starbucks has instituted the so-called “latte levy”, a small surcharge designed to encourage use of reusable cups. Many locations offer discounts for reusable cups.

Quick Serve Restaurant and Specialty Coffee Shop Expansions Drive Growth in Developing Regions

In developing markets, which will generally register faster than average growth, cups and lids demand is being driven in part by the further penetration of large QSR and coffee chains:

• McDonald’s, KFC, and other QSR chains operate thousands of locations in China, India, and other developing countries.
• Starbucks operates more than 2,000 stores in China, and Costa Coffee’s key markets outside the UK include China, India, Saudi Arabia, and the United Arab Emirates.

Food Packaging Remains Largest Market; Demand Concentrated in Key Applications

Dairy product packaging for items such as yogurt and ice cream remains the largest overall food packaging application.

Coffee pods/capsules will boost overall growth, despite being concentrated for now in Western Europe and North America.

The instant noodles market – by far the largest application in several Asian countries – will post slower advances due to a slowdown in consumption rates in China, Indonesia, and other large markets, due to growing competition from flexible packaging formats.

Study Coverage

This industry study presents historical demand data (2007, 2012 and 2017) and forecasts for 2022 by product (drinking cups, packaging and other cups, and lids) and market (food & beverage packaging, foodservice, retail and other). The study also evaluates company market share and analyzes competitors including Berry Global, Dart Container, Georgia-Pacific, Graphic Packaging, Huhtamaki, and Reynolds Group.