According to the “Cups & Lids to 2018” report by Freedonia, US demand for cups and lids market is projected to reach $10.0 billion in 2018.
Growth is seen to be driven by above average gains for food packaging cups and an improved outlook for foodservice revenue growth relative to the 2008-2013 periods.
In particular, cup and lid demand will be propelled by the important role of beverages in restaurants and stores as revenue generators, along with the growing focus on specialty beverages among foodservice operators as a means of offsetting declining consumption of carbonated soft drinks.
Packaging cups to be fastest growing products
While drinking cups will continue to dominate, the fastest gains are anticipated in the packaging cup segment due to favorable consumption trends in a number of applications, along with advantages of convenience, portability, and portion control.
The growing pattern of snacking in place of traditional meals and a widening definition of snack foods will be advantageous for single portion packaging formats such as cups.
Among drinking cup materials, paper cups will experience the fastest growth, reflecting a shift in the competitive landscape stemming from environmental concerns about foam cups, growing restrictions on polystyrene foam disposables, increasing pressure from environmental groups, and switches from foam to paper cups by McDonald’s and other high volume foodservice providers.
Recent and/or planned major expansions in paper cup capacity are being undertaken by key suppliers to meet the expected upswing in US foodservice paper cup demand. In addition, plastic cups will capture some share of hot drink applications as a result of the commercialization of recyclable insulated plastic cups.
Lid demand to outpace cups
Lid demand growth will outpace that of cups, fueled by expanding carryout food and beverage sales from restaurants and retail stores, an increasing percentage of drinking cups utilizing lids, heightened demand for costlier specialty lids, and healthy increases for single serving packaging cups, all of which have some type of lid or flexible lidding.
Growth in the level of drinking cups with lids will reflect an increasing volume of beverages purchased for offsite consumption, consumer tendencies to drink beverages on the go (e.g., in cars), and a growing focus on coffee in quick service restaurants, coffee and snack shops, and convenience stores.
Food service to remain dominant market
The foodservice market, which represented 67 percent of demand in 2013, will remain by far the largest cup and lid market.
Among trends driving growth for cups and lids are the increased focus on specialty beverage offerings in quick service and other restaurants, the growing presence of innovative fountain drink dispensers that enable custom flavor combinations, and the popularity of menu items that use cups, such as ice cream, frozen yogurt, oatmeal, and fruit cups.
Solid gains in the food and beverage packaging market will be driven by favorable consumption trends for various products commonly packaged in cups, such as yogurt, and coffee and tea for single cup brewing systems.
In addition, the growing prominence of snacks as alternatives to meals and rising interest in healthy foods and snack options will support heightened demand in a variety of applications that can be packaged in a small sized format such as a cup.
Source: press release
