Paper Straw Market Forecasts to 2030 - Global Analysis By Product (Printed Paper Straw and Non-Printed Paper Straw), Type (Non-Flexible and Flexible), Material Type, Straw Length, Sales Channel, End User and By Geography

According to Stratistics MRC, the Global Paper Straw Market is accounted for $ 4.9 billion in 2023 and is expected to reach $17.5 billion by 2030 growing at a CAGR of 20% during the forecast period. Paper straws are cylindrical tubes made from paper, designed as an eco-friendly alternative to plastic straws. Paper straws are commonly used in the food and beverage industries, including restaurants, cafes, and bars. They come in various diameters, colors, and lengths to accommodate different beverage types and serving needs. With growing environmental concerns and increasing regulations against single-use plastics, paper straws have gained popularity as a sustainable choice.

According to PacknWood, paper straws cost about USD 0.025, which is significantly higher than USD 0.005 for plastic straws.

Market Dynamics:

Driver:

Government regulations

Many countries and regions have implemented bans or restrictions on single-use plastics, including plastic straws, to mitigate environmental damage. These regulations create a favourable environment for the adoption of paper straws as a sustainable alternative. Additionally, government regulations often come with enforcement mechanisms and penalties for non-compliance, further encouraging the transition to paper straws. Therefore, a government regulation is a significant factor in accelerating market demand.

Restraint:

Cost considerations

Paper straws tend to be more expensive to produce due to the higher cost of raw materials, manufacturing processes, and sometimes additional coatings to improve durability and water resistance. This increased production cost can deter businesses, particularly smaller ones or those with tight profit margins, from switching to paper straws. Additionally, the higher cost of paper straws may be passed on to consumers, potentially leading to resistance or reluctance to purchase, which hampers market demand.

Opportunity:

Consumer preferences

With increasing awareness of environmental issues, consumers are actively seeking out sustainable alternatives to plastic products. Paper straws offer a more eco-friendly option, as they are biodegradable and compostable, addressing concerns about plastic pollution. Additionally, consumers are drawn to the natural and organic appeal of paper straws, which aligns with their desire for products that are perceived as healthier and more environmentally responsible. As a result, consumer preferences are a factor driving market demand.

Threat:

Performance limitations

Paper straws may exhibit reduced durability and structural integrity, leading to concerns about functionality and user experience. Paper straws have a tendency to become soggy or disintegrate when in contact with liquid over time, especially in beverages that are consumed slowly or in hot drinks. This can result in a less satisfactory drinking experience for consumers, potentially leading to dissatisfaction and reluctance to switch from plastic to paper straws. These factors limit the market's expansion.

Covid-19 Impact

The COVID-19 pandemic had a significant impact on the paper straw market. Initially, the demand for paper straws experienced a decline as lockdowns and restrictions led to the closure of restaurants, cafes, and other food service establishments, reducing the consumption of single-use items like straws. Furthermore, disruptions in supply chains and logistical challenges hindered the production and distribution of paper straws.

The non-printed paper straw segment is expected to be the largest during the forecast period

The non-printed paper straw segment is estimated to hold the largest share. Composed of biodegradable paper materials such as bamboo pulp or food-grade paper, these straws offer a sustainable solution to combat the environmental hazards posed by single-use plastics. They possess sufficient structural integrity to withstand typical drink consumption durations without compromising functionality. Moreover, these straws boast compatibility with both hot and cold beverages, making them suitable for a wide range of applications across the food and beverage industry.

The virgin paper segment is expected to have the highest CAGR during the forecast period

The virgin paper segment is anticipated to have lucrative growth during the forecast period. It possesses excellent structural integrity, making it capable of withstanding prolonged exposure to liquids without compromising its integrity or functionality. This makes virgin paper an ideal choice for paper straw production, ensuring a reliable and enjoyable drinking experience for consumers. Additionally, virgin paper can be engineered to meet specific requirements regarding thickness, flexibility, and printing capabilities, allowing manufacturers to customize paper straws to cater to diverse customer preferences and branding needs.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period. Heightened environmental consciousness among consumers, coupled with stringent regulations aimed at reducing plastic waste, has fuelled the adoption of eco-friendly alternatives like paper straws. Additionally, the rise of the food and beverage industry across the region, particularly in countries experiencing economic growth and urbanization, has further boosted the demand for sustainable packaging solutions.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period. The region's well-established food and beverage industry, including large chains and independent establishments, has embraced the transition to paper straws as part of their sustainability efforts. Increasing awareness of the harmful effects of plastic pollution on the environment, particularly in marine ecosystems, has led to widespread support for alternatives like paper straws. Furthermore, regulatory measures aimed at reducing single-use plastics have prompted businesses and consumers to seek sustainable alternatives, further fueling the demand for paper straws.

Key players in the market

Some of the key players in the Paper Straw Market include Biopac UK Ltd., Soton Daily Necessities Co. Ltd., AmerCare Royal, Canada Brown Eco Products Ltd., Transcend Packaging Ltd., Hoffmaster Group Inc., Nippon Paper Industries Co. Ltd., Tetra Pak International SA, Bygreen, Fuling Global Inc., Lollicup USA, Inc., Vegware Ltd., Footprint LLC and Aleco Straws Co. Ltd.

Key Developments:

In January 2024, AmerCareRoyal a leading supplier of disposable foodservice supplies backed by HCI Equity Partners announced the acquisition of Thermosource Tooling and Manufacturing ("TTM").

In April 2023, Tetra Pak and The Walt Disney Company collaboration to bring Disney and MARVEL magic to popular milk drinks categories. Eighty Disney and MARVEL-inspired designs will be showcased on Coop's Qualite & Prix brand ambient white milk, fresh white milk, flavoured milk, and protein drinks in beverage cartons in Switzerland.

In June 2022, Tetra Pak collaborated with Mycorena to build a greenfield production facility for fungi fermentation towards alternative protein-based food applications.

Products Covered:

• Printed Paper Straw
• Non-Printed Paper Straw

Types Covered:

• Non-Flexible
• Flexible

Material Types Covered:

• Recycled paper
• Virgin paper

Straw Lengths Covered:

• <5.75 Inches
• 5.75-7.75 Inches
• 7.75-8.5 Inches
• 8.5-10.5 Inches
• >10.5 Inches

Sales Channels Covered:

• Distributers
• Retailers
• Other Sales Channels

End Users Covered:

• Foodservice
• Beverages
• Institutional
• Household

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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