North America Paper Cups Market Size, Share & Trends Analysis Report By Cup Type (Hot Paper Cups, Cold Paper Cups), By End-User Industry (Quick Service Restaurants, Institutional, Other End-Users), By Wall Type (Single Wall Paper Cups, Double Wall Paper Cups, Triple Wall Paper Cup), By Cup Capacity (Up to 150 ml, 151 to 350 ml, 351 to 500 ml, Above 500 ml), By Sales Channel (Supermarket/Hypermarket, Distributor, Departmental/Specialty/Discount Stores, Online Sales) and By Country(U.S., Canada) Forecasts, 2024-2032

Market Overview

The North American paper cups market size witnessed significant growth and is expected to grow at a CAGR of around 2.8% during the forecast period (2023-2031).

A paper cup is a disposable cup frequently sealed with wax or plastic to prevent fluids from spilling or seeping through the paper. It is heated to a high temperature during manufacture to sterilize it and eradicate any potentially harmful germs. Due to their hectic schedules and lengthy workdays, customers are switching to paper cups to save time. Due to this and the rising popularity of takeaway services in North America, the need for paper cups is increasing.

North America’s paper cups market is driven by increasing out-of-home consumption. The shift towards reusable alternatives is restraining the North American paper cups market. On the other hand, Increasing demand for sustainable packaging acts as an opportunity for the North American paper Cups market.

Market Dynamics

North america paper cups market drivers

Increasing out-of-home consumption

Paper cups are the most often used disposable food and beverage containers due to busy clients' out-of-home consumption. Paper cup-using restaurants, cafes, and coffee chains are another factor in the sector’s expansion. Paper cups can be customized and branded by businesses, boosting their appeal. In North America, Starbucks, Dunkin' Donuts, and Tim Hortons all offer hot and cold beverages in single-use paper cups to satiate their customers who are constantly on the go. According to the 2020 National Coffee Data Trends study by the National Coffee Association, 62% of Americans consume coffee daily, primarily outside the home. Demand for paper cups is rising as on-demand meal delivery and QSRs expand.

North america paper cups market restraints

Shift towards reusability alternatives

Paper cups and other single-use goods are not in high demand from customers or businesses. Reusable cups threaten paper cup revenues. Many patrons of coffee shops bring their reusable cups. This trend is supported by coffee shops and businesses providing customers discounts or rewards for bringing their cups. Customers who use their cups can receive discounts through Starbucks' "Bring Your Own Tumbler" program. This decline in paper cup usage has an impact on market expansion.

North america paper cups market opportunities

Increasing demand for sustainable packaging

To decrease their impact on the environment, consumers are actively seeking out environmentally friendly alternatives. The partnership between Starbucks and McDonald's to develop a 100 percent recyclable and compostable cup is an example of North America's demand for ecologically friendly packaging. Both companies collaborated on the NextGen Cup Challenge, an initiative to provide environmentally friendly cup options, after deciding that environmental issues must be addressed. This partnership demonstrates the industry's dedication to fostering innovation in environmentally friendly packaging, such as paper cups.

Regional Analysis

The North American paper cups market is analyzed by country in the U.S. and Canada. The U.S. holds the major share of the market and is expected to grow at a CAGR of 2.8% during the forecast period.

The region's rapidly growing chain restaurants and cafés, luring countless tourists who enjoy drinking coffee and other beverages on the go, are the main drivers of the North American paper cup market.

The U.S.

The U.S. paper cup market is a booming sector supported by several factors. The market for paper cups is still quite strong due to a sizable consumer base and a strong restaurant industry. The market gains from the food service sector's strong presence, sustainability initiatives, customization options, technology improvements, and a positive customer mindset. Manufacturers are anticipated to concentrate on sustainable practices, innovation, and satisfying the changing demands of U.S. businesses and consumers as the industry expands.

Canada

Canada, like many other places, is placing more of an emphasis on sustainability and environmental awareness. Paper cups are a common alternative to plastic cups which are more in demand due to this. To lessen their impact on the environment, Canadian businesses and consumers are adopting the usage of recyclable and compostable paper cups. A sizable fraction of the population in Canada regularly consumes coffee, demonstrating the country's vibrant coffee culture. Coffee shops and cafes sell hot and cold beverages in disposable cups, increasing the demand for paper cups. The appeal of coffee chains and specialty coffee shops further fuels the market.

Segmental Analysis

The North American paper cups market is segmented 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 3.0% 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 2.3% 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 2.5% during the forecast period. Due to the cups ' durability and stiffness, the double wall paper 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 3.6% 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, Offline.

The Offline domain segment holds the major share of the market and is expected to grow at a CAGR of 2.7% 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- 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.