Biodegradable Cups Market Size, Trends, CAGR and Industry Report 2020 to 2027

Latest Research Study on “Biodegradable Cups Market Size, Share, Growth, Trends, Production, Consumption and Forecast 2020 to 2027″.

The Global Biodegradable Cups Market size is expected to reach over US$ 590 mn by 2027 and estimated to expand at a CAGR of 5.2% during the forecast period of 2020–2027.

Manufacturers Incorporate Water-soluble Coatings in Biodegradable Cups

The growth of the food service and packaging industry is triggering growth for the biodegradable cups market, which currently has a global production volume of ~149 billion units (2018). Manufacturers generally use plastic barriers against moisture, oil, grease, and heat in cups. Since this practice is not environmentally-friendly, market players are introducing water-based compostable coatings in biodegradable cups.

Get sample pages of [email protected] https://www.visionresearchreports.com/report/sample/34452

Biodegradable cups made from water-soluble coating help in easy disposal and can be effectively recycled. This environmental food grade barrier coating solves the issue against water, grease, and heat, for stakeholders in the food and beverage industry. To increase application in the food and beverage industry, manufacturers are improving biodegradable cups with value-added features such as heat resistance for oven applications, heat sealing, and water-based elements that pose no risk for human health. As such, manufacturers in the biodegradable cups landscape are innovating on new paper composites that do not require a barrier in cups, allowing them to biodegrade and be recycled easily.

Ground-level Initiatives Help Overcome Limitations of Recycling Infrastructure

The biodegradable cups market is highly fragmented, which is creating opportunities for emerging manufacturers to enter the market. However, established and emerging market players need to tackle the limitations of the existing recycling infrastructure. Although plastic and fiber materials in biodegradable cups can be recycled when separated, these materials cannot be easily recycled, since there are only few strong incentives for recyclers to recover the materials.

As such, market players are rolling out the scout’s honor system to efficiently collect reusable cups for further treatment. For example, in March 2019, Starbucks – an American coffee company, announced the exploration of next-generation recycling and composting technologies, and is working closely with municipalities to increase the acceptance of biodegradable cups.

Another innovation in the biodegradable cups landscape is the development of high-tech cups with RFID (Radio Frequency Identification) lids to manage the inventory of reusable cups and improve traceability in complicated venues such as stadiums.

Growing Preference of Manufacturers Towards Biodegradable Packaging Products to Boost Market Growth

VRR has found that, growing consumer demand for biodegradable cups translates into potential interest from manufacturers who choose to comply with their customer’s requirements. As fossil fuel reserves are getting depleted, the need for biodegradable packaging presents more of an opportunity and a solution to the problem. Global packaging manufacturers are promoting biodegradable cups that are used in various end-use industries such as food & beverages. Furthermore, an increase in the consumption of ready-to-eat meals has created noteworthy opportunities for biodegradable cup manufacturers to maximize their revenue portfolios. Biodegradable cups are used for various applications, which include food, beverages, and ice cream.  The APAC region is expected to create the highest incremental $ opportunity of ~US$ 76 Mn, with the increase in the number of foodservice outlets. According to the TMR report, the global food industry is expected to capture a considerable market share during the forecast period.

Rising Anti-plastic Sentiments to Drive Demand for Biodegradable Cups

Increasing awareness regarding the adverse effects of plastic on the environment has led to the formulation of stringent regulations for single-use plastic. Consumers and end users are aware of its negative impact on the environment. Persistent efforts by governments to reduce the use of plastic packaging boosts the demand for biodegradable cups. The governments of several countries are implementing strict measures to reduce plastic waste. Furthermore, leading biodegradable cup manufacturers are constantly putting in efforts to introduce advanced biodegradable cups in the market.

For Instance, Huhtamaki Oyj, one of the leading biodegradable cup manufacturers has launched a new product called Impresso double walled hot cup, in its existing Bioware product range, in July 2019. Similarly, in May 2018, World Centric, another biodegradable cup manufacturer, announced the launch of its No Tree range of products, which includes fully-compostable hot cups and bowls.

Initiatives are being taken by governments to reduce the usage of plastic, which started with the ban on single-use plastics in several countries. Many institutions and companies have been trying to develop different products that could replace traditionally-used plastics with environmental-friendly options. The increasing number of beverage consumers evokes the need to replace plastic products with complete PE lined paper cups. With the availability of PLA lined paper cups and cups entirely made of PLA, end users and customers are gradually replacing plastic cups with biodegradable cups, which, in turn, will drive the global biodegradable cups market.

Buy this premium research report, click [email protected] https://www.visionresearchreports.com/report/cart/34452

Analysts’ Viewpoint

The biodegradable cups market is expected to experience 1.5x market value expansion during the forecast period. Currently, the market is favorable for expansion in North America and Europe. As such, there is high potential for incremental opportunity in Asia Pacific during the coming years. Manufacturers are developing biodegradable cups without barriers, which serves as a quick solution for easy recycling and ensures flexibility for stakeholders in the value chain. However, market players are challenged with the limitations of the recycling infrastructure. As such, they are introducing subscription/scout’s honor systems at food outlets and coffee houses to manage the inventory of single-use recyclable cups. Market players should focus on offering innovative packaging solutions for stakeholders in the foodservice packaging landscape. Also targeting educational institutes can increase awareness about the environmental benefits of biodegradable cups. 

  • According to Transparency Market Research’s latest market report on the biodegradable cups market for the historical period of 2014-2018 and forecast period of 2019-2027, the increased demand for food, beverages, and consumer packaging is estimated to drive the biodegradable cups market. Globally, revenue generated by the biodegradable cups market has been estimated to be around 390 Mn in 2019. The biodegradable cups market is expected to expand at a CAGR of ~5% in terms of value throughout the forecast period.
  • Increasing awareness regarding the adverse effects of plastic on the environment has led to the formation of stringent regulations for single-use plastic. These regulations have led to an increase in the consumption of biodegradable cups amongst consumers.
  • Consumers and end users are aware of the negative impact of plastic on the environment. Specific steps are being adopted by governments to reduce the usage of plastic, which has resulted in the ban of single-use plastic in several countries. Many institutions and companies are trying to develop different products that could replace traditionally used plastics.
  • Plastic cups and their lining are made from oil, which is a nonrenewable resource. The fact that manufacturing plastic requires a non-renewable resource results in the depletion of Earth’s resources, which is already limited and cannot be overlooked.
  • Biodegradable cups are made from plants such as sugarcane, corn, and others, which are renewable sources, unlike conventionally used petroleum-based plastic cups. They are an ecofriendly and sustainable, which has made them a better alternative for consumers and end users to embrace.
  • Utilizing biodegradable cups will result in a reduction in the amount of waste dumped into landfills and oceans.
  • The production of bioplastics such as PLA uses 65% less energy in comparison to the ones created by raw petroleum.
  • All the above factors are contributing to the high growth of the biodegradable cups market.

Pollution Woes Caused by Usage of Fertilizers Can Restrict Market Growth

  • According to a study at the University of Pittsburgh in 2010, bioplastics cannot be considered highly ecofriendly if their lifecycles are taken into the consideration. The study involves the comparison of seven traditionally used plastics, one from renewable resources and fossil fuels and four from bioplastics. It revealed that, substantial utilization of fertilizers and pesticides on growing crops, along with the chemical processes that they undergo to turn organic material into plastic, has resulted in the production of a higher amount of pollutants.
  • Also, there has been a considerable amount of land diverted from food production in a world that is increasingly becoming food scarce.
  • Such limitations are bound to impede the growth of the biodegradable cups market to some extent.

Consumer Convenience Will be at the Epicenter of Manufacturing Strategies                                                  

  • Manufacturers are focusing on expanding their product portfolios of biodegradable cups to meet the growing demand from traveling consumers. Biodegradable cup manufacturers are focusing on design to enable optimum consumer convenience. There is an increase in the production of biodegradable cups, due to its recyclability features.
  • Manufacturers of biodegradable cups are ramping up their production lines to produce biodegradable cups to be compatible with coffee machines.
  • Biodegradable cup manufacturers are focusing on expanding their production capacities in developing countries such as India, China, etc., due to the growing demand from fast food service outlets in these countries.

Biodegradable Cups Market: Competition Landscape

  • Some of the key players in the global biodegradable cups market that are included in the report are
    • Huhtamaki Oyj
    • Colpac Ltd.
    • Benders Paper Cup Company
    • Fabri-Kal
    • World Centric
    • Bio Futura B.V.
    • Genpak, LLC
    • Dart Container Corporation
    • Pactiv LLC
    • Lollicup USA Inc.
  • Key manufacturers in the global biodegradable cups market are focusing on expansion through acquisitions and partnerships. In recent years, it has also been observed that, key participants in the biodegradable cups market are increasing their popularity around the globe by expanding their product portfolios and introducing innovative cup technologies.
  • In July 2019, Huhtamaki Oyj launched a new product called the Impresso double walled, hot cup, in its existing BioWare™ product range. In March 2018, it acquired a majority of stake in Cup Print, which is an Ireland-based manufacturer of cups.
  • In July 2019, Colpac Ltd. worked with Zeus in order to help in the development of an eclectic range of its LeafWARE brand. The product is compostable and fully recyclable. In June 2019, it achieved ISO certification 14001:2015 by driving internal initiatives that reduced environmental footprint. In April 2019, Colpac collaborated with ZA, a brand launched by Pizza Express, to create a sustainable packaging solution that can be easily recycled by consumers.
  • In December 2018, Fabri-Kal added two more sidekick containers of 12 and 16 ounces to cater to varying customer needs.
  • In May 2018, World Centric announced the launch of its NoTree™ range of products, which includes fully compostable hot cups and bowls. In February 2019, the company unveiled its compostable Harvest Fiber Taco Line. It offers a range of Earth-friendly products for food packaging.

Some of the key players operating in the global biodegradable cups market that are included in the report are Huhtamaki Oyj, Colpac Ltd., Benders Paper Cup Company, Fabri-Kal, World Centric, Bio Futura B.V., Genpak, LLC, Dart Container Corporation, Pactiv LLC, Lollicup USA Inc, Eco-Products, Inc, Go-Pak UK LTD, Vegware, Scyphus Limited, Nupik-flo UK Ltd, Biopak Pty Ltd., Detpak, BVO International GmbH, Good Start Packaging, and The Cup Folk.

Segmentation

Biodegradable Cups Market by Capacity

  • Up to 7 Oz
  • 8 -14 Oz
  • 15 – 20 Oz
  • Above 20 Oz

Biodegradable Cups Market by Material

  • Paper
  • Plastic
    • PLA
    • PBS

Biodegradable Cups Market by Product

  • Single Wall
  • Double Wall

Biodegradable Cups Market by Application

  • Food
    • Spreads
    • Sauces & Dressings
    • Confectionery
  • Beverages
    • Hot
    • Cold
  • Ice Cream

Biodegradable Cups Market by End Use

  • Food Service Outlets
    • Quick Service Restaurants
    • Hotels
    • Cafes
  • Institutional
    • Educational & Public Institutes
    • Private Institutes
    • Malls & Multiplexes
  • Household

Biodegradable Cups Market by Region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Europe
    • Germany
    • Italy
    • France
    • U.K
    • Spain
    • Benelux
    • Nordic
    • Russia
    • Poland
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Japan
    • Australia & New Zealand
    • Rest of APAC
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa

Buy this premium research report, click [email protected] https://www.visionresearchreports.com/report/cart/34452

Leave a comment

Your email address will not be published. Required fields are marked *