US Paper Foodservice Packaging & Serviceware

Report Overview

Understand market size and industry players
Understand the main types of packaging and demand trends

• napkins

• paper cups

• paper plates

• paper straws

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This report includes data from 2012-2027 in 5 year intervals and tables featuring year-by-year data for 2019-2026.

Demand for paper and paperboard single-use foodservice products is forecast to grow 3.3% annually to $16.0 billion in 2027. Demand in unit terms will grow as sustainability concerns increase, leading restaurants to move away from materials such as conventional plastic and foam and adopt paper and other biodegradable materials as a replacement. Additionally, demand in value terms will be supported by a shift toward higher value packaging, as more sustainable products that also feature a high performance level are higher priced than conventional paper packaging. Further gains will result from elevated levels of foodservice delivery and carryout/drive-thru revenues elevating paper disposables usage.

Paper-based disposables account for nearly half of the overall foodservice disposables market due to the ubiquity of napkins, paper cups, and paper bags at foodservice establishments. Paper’s natural high biodegradability levels and low cost has made it the preferred material to replace plastics in suitable applications in past years. However, paper faces a number of challenges in keeping its market share.

Paper Faces Competition from New Materials to Replace Plastic

Development of New Coatings to Increase Performance & Sustainability

Elevated Interest in Carryout & Drive-Thru Will Support Demand for Paper Disposables

Historical Market Trends

At its broadest level, demand for single-use paper foodservice products is driven by trends in foodservice revenue, which is an indicator of the number of meals eaten away from home and the amount spent on those meals. Growth in foodservice activity in turn is dependent on a number of macroeconomic and demographic factors, including:

• trends in food consumption and the mix of food eaten at home versus away from home
• the health of the overall economy and levels of disposable income, which impact the ability of consumers to spend on 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, which impact foodservice sales at hotels and sports and recreation venues
• student enrollment levels and trends in school lunch programs

• the mix of restaurants that are limited versus full-service, as limited service restaurants use a higher level and broader mix of disposables
• the share of total restaurant orders that are provided via drive-thru, curbside pickup, carryout, or delivery services
• the size and diversity of restaurant menus, as specific disposables are often used with specific menu items
• social factors such as health concerns, which not only influence the amount consumers eat out but the type of foods they purchase
• sustainability initiatives, which impact the overall level of disposables used as well as the types of products and materials used
• regulations, especially restrictions on specific materials or types of disposables

In addition, consumers are increasingly aware of the environmental impact of disposable packaging, and this has provided a distinct benefit for producers of paper products as major foodservice operations focus on improving their sustainability image.

Demand by Material (Paper & Paperboard)

Paper and paperboard products account for nearly half of overall foodservice disposables demand and are gaining share from conventional plastic – their main competitor – due to growing preferences for materials that are perceived as environmentally friendly. However, in some applications paper products still need to address performance issues – particularly regarding high-moisture foods – and develop improved coatings that do not restrict recycling or product biodegradability.

Demand for paper and paperboard disposables is forecast to grow 3.3% annually to $16 billion in 2027. Products will lose demand share to other higher value materials increasingly penetrating the eco-friendly market – especially in applications where high quality is expected, as those are able to provide a better customer experience. However, new materials are still being implemented and have not yet reached economies of scale, meaning prices have yet to decline, allowing paper to compete as an inexpensive alternative.

Factors influencing overall demand include:

• Growth is expected due to a combination of convenience, cost-effectiveness, sustainability, and changing consumer behaviors.
• As more businesses look for ways to reduce their environmental impact and meet the demands of eco-conscious consumers, paper disposables are likely to become an increasingly popular option for the foodservice industry.

Pricing Trends

The foodservice disposables industry is competitive, and product pricing is a significant factor in customer purchasing decisions. Factors influencing prices for single-use foodservice products include:

• raw material and labor costs
• shipping and transportation costs
• supply and demand balances
• customization, design, and printing costs
• changes in the material mix for various products
• increasing participation in and corresponding competition from products made of newer and more innovative materials
• import competition