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).

Paper cups are single-use and immediately discarded. Soup, tea, coffee, soft drinks, etc., can all be enjoyed from these vessels. These cups are coated with polyethylene, the most prevalent plastic resin. This improves their efficiency and longevity by preventing the reduced moisture from absorbing and retaining flavor. Paper cups are popular because they allow people to drink quickly and move on with their day. These mugs can be used once and then discarded without washing. The rising demand for ready-to-eat foods and services around the world has had an impact on paper cup sales.

Government initiatives drive the Asia Pacific paper cups market. Limited awareness acts as in restraint for the Asia Pacific paper cups market. On the other hand, Increasing awareness regarding the negative effects of plastics acts as an opportunity for this market.

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.

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 holds the major market share 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 Cup 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.

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 holds the major share of the market and is expected to grow at a CAGR of 5.1% during the forecast period. 8-12 Oz are designed to fit under the nozzle of automatic coffee makers; they can readily hold 10 ounces and can hold a maximum of just under 12 ounces. For decades, this medium or standard portable coffee has been the most popular paper cup size for tea and other hot beverages. It is a versatile measurement that can be used for various beverages; some coffee chains may serve small, normal, and medium portions in this cup size to reduce the number of available cup sizes.

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

Hot Beverage Cup holds the major share of the market and is expected to register a CAGR of 4.4% over the forecast period. The anti-blocking and thermally insulating PE resin covering on the heated paper cup is only a portion of the cup's overall construction. According to the International Coffee Organization, coffee is one of the most widely consumed drinks in the world.

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

The Double wall domain segment holds the major share of the market and is expected to grow at a CAGR of 4.6% during the forecast period. Due to the cups ' durability and stiffness, the double wall cup market is expected to grow rapidly in the next years as demand rises across the food and beverage sector.

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

Food and Beverages hold the major share of the market and are expected to register a CAGR of 5.7% over the forecast period. Due to the growing popularity of eating in restaurants, the food and beverage industry is expected to capture a sizable portion of the worldwide market in the coming years. This trend was especially pronounced among millennials between 25 and 40. In addition, several popular restaurant chains are teaming up with companies in the food and drink industry. Demand for paper cup packaging is expected to increase due to this partnership.

The market is further segmented by distribution channel into Online and offline.

The Offline domain segment holds the major share of the market and is expected to grow at a CAGR of 4.8% during the forecast period. Offline consumers shop at stores, markets, and warehouse clubs. A retail location is a storefront that sells consumer goods and services in smaller numbers to locals. Companies that serve as retailers typically buy in bulk from manufacturers or wholesalers at deep discounts, then resell those products to consumers at much higher prices.

Recent Developments

• 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.
• March 2023- Huhtamaki and Sporting Kansas City collaborated to eliminate Children’s Mercy Park waste.