Global Foodservice Cups Report

Report Overview

Regulations, sustainability, and environmental concerns transform the global market for disposable foodservice cups

Key Themes Covered in this Report:

• How are regulations and sustainability initiatives impacting disposable cup demand?
• What materials are replacing foam cups in foodservice applications?
• How will reusable cup programs affect demand for disposables?

Featuring 135 Tables and 77 Figures!

The global market for disposable foodservice cups totaled nearly $16 billion in 2023. Demand is expected to increase 5.6% per year to $20.8 billion in 2028, reflecting a variety of opposing trends:

• Continued economic growth and expanding consumer incomes in developing countries in the Asia/Pacific, Africa/Mideast, and Latin America regions will drive strong growth in unit demand in the fast food and fast casual restaurant sectors, which are heavy users of disposable cups.
• The continued shift toward higher cost, more sustainable cups will boost growth in market value.
• Efforts to expand reusable beverage cup programs will restrain demand for disposable cups. Growth will also be constrained by reliance on the sale of pre-packaged beverages instead of fountain drinks in many developing areas and growing sales of pre-packaged beverages in developed regions.
• Regulations and corporate sustainability initiatives targeted at reducing single-use plastics will limit plastic cup demand and promote the use of alternative materials.

Sustainability Efforts Target Traditional Single-Use Cups but Offer New Growth Opportunities

Governments and businesses around the world are increasingly seeking sustainable packaging options, especially in foodservice applications. Disposable foodservice cups are a highly visible source of pollution due to their ubiquity in fast food and other restaurants; these cups often end up in landfills or as litter. Numerous countries and cities have passed legislation banning key single-use plastic items, including items such as EPS foam cups. This has supported a continuing shift to alternative cup materials, such as paper, molded fiber and aluminum. Additionally, leading fast food, coffee, and snack chains (such as Starbucks and McDonald’s) have started to incentivize reusing beverage cups, further disrupting the disposable cup market.

Food Delivery Opens New Doors & Shifts Cup Demand

The rapid expansion of foodservice delivery, particularly in markets like China and other developing countries, has impacted disposable cup use in a variety of ways:

• Takeout and delivery orders – especially from full-service operations that traditionally used few disposable items – will continue to take share from dine-in options, providing opportunities for food cups.
• However, when these orders include beverages, they are less likely to be packaged in cups, limiting the positive impact on demand for beverage cups.

Disposable cup manufacturers must innovate to meet the growing demand for food delivery packaging that emphasizes convenience, food quality, consumer safety, and sustainability.

Key Markets in Asia & Africa to Lead Global Disposable Cup Demand Growth

Ongoing economic growth, rising consumer incomes, broader ranges of restaurant menu options, and the growing availability of delivery and takeout services will fuel significant growth in the disposable cup markets throughout Asia and Africa. The continued rise of fast food and fast casual dining sectors in these regions will also play a role. Additionally, gradual improvements in water quality and expansion of international restaurant chains into these regions should increase consumption of fountain drinks, which could further boost demand for disposable beverage cups.

Historical Market Trends & Growth Factors

Demand for disposable foodservice cups is broadly driven by trends in foodservice revenue, which is an indicator of the number of meals eaten away from home and the amount spent thereon. In turn, growth in foodservice activity depends on numerous macroeconomic and demographic factors, including:

• trends in food and beverage consumption and the mix of meals eaten at home versus away from home

• the health of the overall economy and levels of disposable income, which impact consumers’ abilities to buy more expensive restaurant meals (compared to home cooking)

• changes in the population mix, especially in terms of age cohorts (such as young adults) that are likely to eat out more often

• trends in consumer spending, including spending on travel and entertainment, impact foodservice sales at hotels and sports and recreation venues

• student enrollment levels and trends in school lunch programs

Beyond these basic macroeconomic indicators, other factors that can impact the foodservice industry and demand for disposable cups include:

• the mix of restaurants that are limited versus full-service, as the former use more disposable cups

• the share of total restaurant orders that are provided via drive-thru, curbside pickup, carryout, or delivery services

• the importance of the street food sector in a country and the types of food and beverage packaging those vendors prefer

• the size and diversity of restaurant menus, as specific cup types are often used with specific menu items (e.g., rigid plastic cold cups for iced coffee)

• social factors such as health concerns, which influence both the amount that consumers eat out and the types of food and drinks they purchase

• regional water quality, which plays a major role in fountain drink sales

• sustainability initiatives, such as reusable cup programs, that impact the level of disposable cups used

• regulations, especially restrictions on specific materials such as EPS foam

Regional Trends

Demand by Region

Global demand for foodservice disposable cups is projected to rise 3.4% per year to 491 billion units in 2028, while market value is expected to increase 5.6% annually to $20.8 billion in 2028. Growth will be boosted by a combination of real gains in the number of units and a shift in product mix toward higher-value products. Real gains will be driven by:

• increasing consumer incomes in developing areas, which allows a higher share of food consumption to be purchased or eaten away from home

• growth in the share of restaurant meals worldwide that are obtained via delivery, carryout, or drive-thru options

• an ongoing trend toward increasing menu diversification and globalization at foodservice establishments worldwide

• the expanding share of foodservice orders from fast food and fast casual dining options in almost every country going forward, as these establishments are among the leading users of disposable cups

The best growth opportunities are anticipated in regions with developing countries, particularly Central and South America, Eastern Europe, Africa/Mideast, and parts of Asia. Rising personal incomes and the expanding presence of global food chains throughout these regions will support strong growth.

Regulations and restrictions on single-use plastics – especially foam products – and end user sustainability initiatives will continue to have a strong impact on cup demand worldwide. Foodservice establishments turning to higher-cost replacements that are perceived to be more sustainable, such as bioplastic cold cups or molded fiber portion cups, will continue to support growth in market value.

Food vs. Beverage Cups

Global demand for foodservice disposable cups is projected to rise 3.4% per year to 491 billion units in 2028, while market value is expected to increase 5.6% annually to $20.8 billion in 2028. These gains will largely be supported by the continued expansion of the global foodservice industry and the growing importance of fast food and fast casual restaurants (particularly in developing nations, where disposable cups tend to be used in significant numbers).

Beverage cups will continue to account for a slight majority of total foodservice cup demand in value terms, although food cups account for a greater share of unit demand due to the large number of small, low priced condiment cups that are used.

The expanding reach of third-party delivery services will have a mixed effect on foodservice cup demand:

• The growing number of takeout orders from full-service restaurants will boost usage of food cups, as these establishments tend to utilize larger, higher-quality, and more expensive disposable containers.

• Demand for beverage cups will see less of a benefit, however, as takeout and delivery orders from these establishments often do not include fountain drinks or beverages are packaged in containers other than cups.

Average demand growth for both food and beverage cups will be similar throughout the forecast period because a variety of other trends will largely offset one another:

• Beverage cup demand will be boosted by expanding drink menus at many restaurants and the continued popularity of beverages (e.g., smoothies and bubble tea) that tend to utilize higher-value disposable cups.

• Food cup demand will be less affected by regulations limiting single-use plastics due to the already widespread use of paper food cups.

• Beverage cup demand will be weighed down by efforts to promote reusable cups, which generally target drinks more than foods.

• Food cup demand will be restrained by competition from two-piece containers and other rigid food packaging options that provide similar functional benefits and performance.

Global Foodservice Cups Report Details

Key Industry Participants Driving Trends

Global Foodservice Cups Report Scope 

This study examines the global market for foodservice single-use (disposable) cups. For the purposes of this study, “single-use” products refers to items used in the service of food and beverages that are intended to be disposed of after use. Items with increased durability that allow multiple uses for various applications, such as aluminum beverage cups, are included.

Product segments covered include:

• beverage cups

  • cold beverage cups

  • hot beverage cups

• food cups

  • general purpose food cups

  • condiment cups or portion cups

  • scoop cups or fry scoops

Demand is also segmented by material:

• plastic, including rigid, foam, and bioplastics

• paper

• metals, including aluminum and steel

• molded fiber (e.g., wood pulp, sugarcane, bamboo, wheat straw)

• other materials, including wood and bamboo

Finally, demand is analyzed in terms of market:

• eating and drinking places:

  • limited service, including fast food and fast casual restaurants, coffee and snack shops, and street vendors

  • full-service restaurants, cafeterias, and bars

• retail and noncommercial markets:

  • retail stores, including grocery and convenience stores

  • noncommercial markets (e.g., lodging, catering, sports and entertainment venues, and institutional outlets like educational and healthcare)

Excluded from the scope of this report are the following:

• cup lids

• reusable drinking cups and glasses

• tubs, buckets, and pails, which contain multiple servings of food

• other disposable food containers such as clamshells, two-piece containers, and folding cartons

• disposable items used for the preparation of food or beverages that do not reach the customer or end user

• disposable cleaning and maintenance supplies

• prepackaged or prefilled food or beverage items that are not filled at the foodservice establishment, such as prepackaged condiment cups or beverage bottles

• toys or other promotional items

Also excluded are cups that are purchased directly by consumers at retail stores.

Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are presented for demand for foodservice disposable cups by unit and value in current US dollars (including inflation); demand data by market is presented in unit terms and current US dollars. “Demand” (or sales) is defined as all shipments from US plants, plus imports minus exports.