Paper Straw Market

Paper Straw Market Outlook (2023 to 2033)

As per Fact.MR, the global paper straw market is forecasted to increase at a fast pace from a valuation of US$ 1.3 billion in 2023 to US$ 8 billion by the end of 2033. This is because the market is predicted to soar at a CAGR of 20% from 2023 to 2033.

Paper straws are becoming increasingly popular due to increasing government prohibitions on plastic straws and rising awareness of sustainability. Many countries are switching to using paper straws instead of plastic ones since paper is considered to be a more environment-friendly option.

Rise in catering services, restaurants, hotels, food wagons, and food stalls serving millions of clients is driving the demand for paper straws in the food and beverage industry. Paper straws are generally used to drink milk, tea, coffee, water, and other beverages. Because of their quirky designs and vibrant colors, these affordable straws are used for cake decorating, paper crafts, parties, and DIY toys.

• Many coffee shops and eateries have increased their emphasis on curbside pickup or carryout exclusively. There is an increase in demand for paper cutlery and straws in the foodservice sector. The primary reason for this is the rising need for hygiene products.

Rapid growth in the hospitality sector is boosting the sales of paper straws. The hospitality sector is a prominent end-user of paper straws, and a rise in grocery stores has greatly increased product demand. The market is anticipated to be significantly impacted by an increase in the use of high-speed paper straw machines.

For many restaurant owners, the biodegradability of paper straws and their durability during the meal are major attractions. Manufacturers now offer paper straws in a variety of designs and hues to draw in customers. The market for paper straws is anticipated to be driven by the HORECA sector's growth, an increase in restaurants and hotels, and the emergence of food delivery services.

Emergence of numerous online food delivery services due to technological advancements has increased demand for paper straws. The market is being boosted by the toxic landfills that plastic straw waste has created. Other important reasons contributing to the market expansion for nontoxic straws include government restrictions on the use of plastic due to its non-biodegradable nature, campaigns promoting the same, and rising consumer awareness of such products.

Report Attributes	Details
Paper Straw Market Size (2023)	US$ 1.3 Billion
Forecasted Market Value (2033)	US$ 8 Billion
Global Market Growth Rate (2023 to 2033)	20% CAGR
Market Share of Virgin Paper (2023)	60%
Asia Pacific Market Share (2023)	40%
Key Companies Profiled	Bygreen Charta Global, Inc. OkStraw Paper Straws Footprint LLC BioPak UK UFlex Limited Hoffmaster Group Inc. The Paper Straw Co Transcend Packaging Ltd. Canada Brown Eco Products Ltd. Huhtamäki

What is Unfolding New Avenues for Paper Straw Manufacturers?

“Growing Popularity of Beverage Dispensers in Commercial Settings”

Rapidly expanding commercial beverage dispenser industry is the key factor boosting the sales of paper straws. Manufacturers of branded beverages are increasingly placing beverage dispensers in public spaces such as malls and offices, which is driving up beverage sales.

For the convenience of users, certain beverage dispensers come with attached disposable paper straws. The increasing use of beverage dispensers in commercial settings is fueling the demand for disposable paper straws.

“Rising Consumer Preference for Eco-friendly Products”

One of the major market trends driving market expansion is the use of environmentally friendly materials. Due to rising demand from a variety of end-user industries, including the food and beverage industry, paper straw demand is rising.

To protect consumer health and proper waste disposal, the food and beverage industry must assure adherence to sustainable manufacturing methods and the use of safe products. The usage of environmentally friendly materials, including paper, bamboo, and others, has increased as a result of this.

Paper straws that are composed of 3/4 layers of paper and several additives around the mold are comparatively more durable. Paper straws can thus satisfy the market's need for reliable and environmentally friendly alternatives to plastic straws and acquire considerable traction over the forecast period.

Many consumers have long been drawn to appealing, one-time-use, disposable goods. To attract more customers to their products, paper straw manufacturers are offering printed paper straws with cute designs. A bright outlook for the growth of the paper straws market is provided by rising government reforms and regulations banning plastic straws as well as increased consumer demand for biodegradable straws due to greater consumer intolerance of plastic straws.

“Surging Demand for Non-printed Paper Straws”

Non-printed paper straws are gaining popularity due to their distinctive qualities and changing consumer tastes and preferences. Consumers have a safer and greener option with non-printed paper straws because they are made particularly to prevent ingesting inks or colors. The fact that these straws are generally made from food- or sustainably-sourced paper materials increases their appeal to those who care about the environment.

Increased significance of sustainability and eco-awareness in consumer decision-making is boosting sales of non-printed paper straws. The market is projected to grow over the coming years as more people prioritize environmentally friendly solutions, creating the potential for producers and suppliers in this industry.

Which Barriers are Restraining the Sales Growth of Paper Straws?

“Fluctuating Raw Material Prices and Availability of Alternatives”

One of the factors impeding market expansion is fluctuating raw material prices. The cost of making paper straws is directly impacted by changes in the price of raw materials, hence vendors' profit margins are unclear. Due to rising energy and freight costs as well as a shortage of raw materials, vendors are currently experiencing severe difficulties.

Intricate procedures involved in producing paper and pulp, which are then molded to create straws in the right size, shape, and color, make the production of paper straws more expensive than the creation of plastic or latex straws. Paper straws biodegrade in three days and are fully dissolved in a liquid.

While paper straws are considered a more sustainable alternative to plastic straws, other alternatives such as reusable straws made of metal, glass, or silicone have gained popularity. Reusable options can offer long-term cost savings and can be preferred by consumers seeking a more durable and customizable solution.

How are Start-ups Creating New Imprints in This Competitive Business Space?

“New Market Entrants Focusing on Materials Used in Paper Straws and Sustainable Sourcing”

One of the most harmful throwaway plastic products is the plastic straw. They are quickly and mindlessly discarded after being used once. Polypropylene, which is used to make the majority of plastic straws, is difficult to recycle. This implies that the environment, which includes the oceans, receives billions of straws.

Start-ups are conscious of the materials used in paper straws and focus on sustainable sourcing. They prioritize materials that are biodegradable, compostable, and derived from renewable resources. New companies even explore plant-based or food-grade coatings to enhance the performance and sustainability of paper straws. They collaborate with recycling facilities or guide how to dispose of paper-wrapped straws responsibly to ensure their end-of-life impact is minimized.

• Many companies have started to reduce plastic product usage. Alternatives made of eco-friendly materials are being sought by some. A start-up based in Vietnam, Strawlific offers biodegradable paper straws, including bamboo paper straws, cardboard straws, and recycled paper straws as an alternative to single-use plastic straws.

Which Market Trend is Steering Demand for Paper Straws in Asia Pacific?

“Increase in Government Regulations & Campaigns to Reduce Single-use Plastics”

• Asia Pacific is currently leading the global paper straw market with 40% share.

An increase in government regulations and campaigns to reduce single-use plastics have encouraged the adoption of paper straws as an eco-friendly alternative. The availability of several inventive drink variations and rising demand for functional beverages among millennials are driving the growth of the paper straw market in the region.

Country-wise Insights

Why Should Paper Straw Producers Invest in the United States?

“Substantial Rise in Paper Recycling Programs Driving Product Demand”

The United States has witnessed a significant demand for paper straws due to increasing environmental concerns among several consumers. The United States paper straw market is growing as businesses actively seek sustainable alternatives. A rise in paper recycling programs is opening up new market expansion potential in the United States. The rapid expansion of the food and beverage industry is boosting the paper straw industry size.

What is the Market Scenario for Paper Straws in Germany?

“Growing Usage of Paper Straws in Foodservice Industry”

Extensive use of paper straws in the foodservice industry is projected to boost the market value over the coming years. The growing hospitality industry and an increase in consumer spending on eating out, high consumption of alcoholic and non-alcoholic beverages are the key factors supporting market expansion.

Category-wise Insights

Which Material is Popular for Manufacturing Paper Straws?

“Virgin Paper Demand Increasing Due to its Excellent Quality & Robustness”

Based on material, the market is classified into virgin paper and recycled paper.

• Virgin paper accounts for 60% share of the global market at present.

Virgin paper is more robust, absorbent, and retains the color of the ink better. The recycled paper does not last for very long because it is inconsistent, of poor quality, and performs poorly due to misuse.

The demand for virgin paper is increasing due to its excellent quality and robustness. Paper straw quality is highly regulated because it can have an impact on a person's health given that they come into direct touch with food. As a result, the market has rigorous standards for product quality and demands that manufacturing materials be safe for use.

Competitive Landscape

According to the detailed research by Fact.MR, a market research and competitive intelligence provider, top paper straw companies are developing innovative designs to enhance their functionality and user experience. They are creating straws with improved strength and durability to address concerns about soggy or disintegrating straws. These designs can include reinforced materials, water-resistant coatings, or foldable/bendable options.

Key market players are collaborating with various stakeholders, including beverage companies, foodservice providers, and paper packaging material suppliers, to replace plastic straws with paper alternatives. They are focusing on new developments, product standards, quality control, and supply chain management to increase their revenue.

For instance :

• In September 2021, Sun-Rype Products Ltd., a division of Canadian fruit-based beverage manufacturer A. Lassonde Inc., announced its new flexible paper straw on all of its beverage packs manufactured from recycled paper.

Key Segments Covered in Paper Straw Industry Research

• By Product Type :

  • Printed Paper Straws
  • Non-printed Paper Straws

• By Material :

  • Virgin Paper
  • Recycled Paper

• By Application :

  • Foodservice
  • Household
  • Institutional
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa