Asia Pacific Paper Cups Market

Market Overview

The Asia Pacific paper cups market size witnessed significant growth and is expected to grow at a CAGR of around 4.9% during the forecast period (2023-2031).

Highlights

• 8-12oz dominates the market by size. 
• Hot beverage cup dominates the market by cup type.
• Double wall dominates the market by wall type
• Food and beverage application dominates the market by application.
• Offline dominates the market by distribution channel.

Paper cups are disposable and can be used to drink soup, tea, coffee, soft drinks, and other items. These cups are covered with polyethylene, the most common plastic resin, which improves their functionality and durability by preventing the reduced moisture from absorbing and retaining flavor. Customers usually use paper cups to save time and effort because of their busy schedules and hectic lifestyles. After use, these cups don’t need to be washed; they may be thrown away right away. The global trend toward ready-to-eat food and services has impacted the demand for paper cups.

Market Dynamics

Asia Pacific Paper Cups Market Drivers

Government Initiatives

Asia-Pacific governments are enacting plastic trash reduction and sustainability policies. Plastic cups under 250 milliliters were banned in India in 2018. The government banned this to reduce plastic waste and encourage sustainable alternatives. Businesses and consumers seek compliant and eco-friendly paper cups, increasing demand. The prohibition required cafes, restaurants, and street sellers to transition from plastic to paper cups. Indian paper cup production and usage grew.

Asia Pacific Paper Cups Market Restraints

Limited Awareness

The Asia-Pacific’s knowledge of plastic waste’s environmental impact is expanding, but not evenly. Paper cups may be less known in rural or underdeveloped areas. This ignorance may slow market growth in those places. Paper cups as a sustainable alternative to plastic cups may be unfamiliar in rural Southeast Asia. Cultural habits and environmental ignorance may contribute to this restricted knowledge. Traditional bamboo, leaves, or pottery cups are more culturally significant or easily available in certain regions. In these regions, paper cup demand is modest, limiting market expansion.

Asia Pacific Paper Cups Market Opportunities

Increasing Awareness Regarding Negative Effects of Plastics

There has been a huge trend toward minimizing plastic waste and promoting sustainable alternatives in nations like Australia and New Zealand. For instance, some significant Australian towns have adopted prohibitions on single-use plastics, including plastic cups, to reduce plastic pollution. As a result, there is an increasing need for environmentally friendly packaging options, such as paper cups, in cafes, restaurants, and events throughout the area. Paper cup makers are benefiting from the active search for alternatives to single-use plastics on the part of businesses and consumers.

Segmental Analysis

The Asia Pacific paper cups market is based on size, cup type, wall type, application, distribution channel, and country.

The market is further segmented by size into Less Than 8 Oz, 8-12 Oz, and More Than 12 Oz.

The 8-12 Oz domain segment dominates the market and is expected to grow at a CAGR of 5.1% during the forecast period.

The market is further segmented by cup type into Hot Beverage Cups and Cold Beverage Cups.

Hot Beverage Cup dominated the market and is expected to register a CAGR of 4.4% over the forecast period.

The market is further segmented by wall type into Single Wall, Double Wall, and Triple Wall.

The Double wall domain segment dominates the market and is expected to grow at a CAGR of 4.6% during the forecast period.

The market is further segmented by application into Food and Beverages, Institutional, Events, and Others.

Food And Beverages dominated the market and are expected to register a CAGR of 5.7% over the forecast period.

The market is further segmented by distribution channel into Online, Offline.

The Offline domain segment dominates the market and is expected to grow at a CAGR of 4.8% during the forecast period.

Regional Analysis

The Asia Pacific paper cups market is analyzed by country in China, India, Japan, Southeast Asia, Australia, and the Rest of Asia-Pacific. China dominated the market and is expected to grow at a CAGR of 5.2% during the forecast period.

The paper cup market is driven by Asia-Pacific’s dense population and rising out-of-home consumption in Central and Southeast Asia. In May 2021, the Vietnam Pulp and Paper Association (VPPA) reported that the country utilized 404,711 tons of paper for packaging, down 4% from the previous month. Vietnam’s strong economy has many paper Cups packaging vendors excited for 2021 and beyond. Due to urbanization, SSI Securities Joint Stock Company also forecasts a 12% increase in Vietnam’s paper packaging demand. These advantages have boosted paper cup packaging.

On July 1, 2022, India banned single-use plastics. Consumers must comprehend plastics’ environmental impacts before buying. Corn starch is a popular plastic packaging alternative. The top online meal delivery companies also use corn starch packaging to establish an eco-friendly company image. Shiva Food Packaging, an Indian company, sells high-quality Cornstarch Clamshell Food Containers for events. The firm makes this lunch tray from maize starch, which is environmentally friendly. The company also sells packaging in various sizes to distributors and suppliers globally. It also touts being eco-friendly and compostable. Current improvements may allow this specialty industry in India to thrive.

In January 2021, the Chinese government will ban single-use and non-biodegradable plastics in restaurants. It promotes eco-friendly products and lifestyles. Paper recycling costs the government too. These elements create a paper cup market.

Recent Developments

• March 2023- Huhtamaki and Sporting Kansas City collaborated to eliminate Children’s Mercy Park waste.
• March 2023- Ethisphere, a leader in establishing and expanding the norms of ethical business practices, named International Paper (NYSE: I.P.), a global manufacturer of environmentally friendly packaging, pulp, and other fiber-based products, as one of the 2023 World’s Most Ethical Companies.