Paper Cups Market Size, Share & Industry Analysis, By Type (Hot Paper Cups and Cold Paper Cups), By Wall Type (Single Wall Paper Cups and Multiple Wall Paper Cups), By End-User (Household, Quick Service Restaurants (QSR), and Others), and Regional Forecast, 2025-2032

The global paper cups market size was valued at USD 10.91 billion in 2024. The market is projected to grow from USD 11.35 billion in 2025 to USD 13.49 billion by 2032, exhibiting a CAGR of 3.86% during the forecast period.

Paper Cups are disposable cups made from paper, usually with a thin lining or coating of plastic or wax, preventing liquid from leaking out or soaking by paper. The growing demand for paper cups for serving hot and cold beverages in the food and beverage industry fuels the global market growth. Furthermore, various prominent players are operating in the market, including Huhtamäki Oyj, Graphic Packaging International, LLC., Pactiv Evergreen, Dart Container Corporation, and Hotpack Packaging Ind. LLC.

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MARKET DYNAMICS

Market Drivers

Growing Coffee and Tea Consumption to Drive Product Demand

Growing coffee and tea consumption among individuals globally to improve energy and stamina is driving the global demand for paper cups. For instance, according to surveyed data published by the National Coffee Association (NCA), in 2023, around 65% of Americans drink coffee every day, compared to 62% in 2020. Moreover, according to the Tea Association of USA Inc., a U.S.-based non-profit organization over 3.9 billion gallons or nearly 85 billion servings of tea was consumed by Americans in 2021. Numerous individuals prefer to purchase tea and coffee from cafés or coffee shops when they are outside their homes. These establishments use paper cups for the packaging of their beverages, whether for dine-in or takeaway orders.

Rising Commercial Infrastructural Settings to Trigger Product Sales

Rising commercial infrastructural settings, such as offices, educational institutions, hospitals, and others globally, increase product demand for the consumption of various beverages. These establishments provide coffee machines, water coolers, or break room facilities where individuals can access hot and cold beverages. Thus, paper cups are commonly used in these settings for convenience, hygiene, and easy disposability. Furthermore, cafes, hotels, and restaurants also use disposable paper cups to instantly serve their customers coffee, tea, soup, and other beverages. They prefer custom-printed paper cups to portray their brand information and build restaurant sales.

Market Restraints

Easy Availability of Substitute Products to Hamper Market Growth

The wide availability of cups developed using other materials, such as foam, plastic, ceramic, stainless steel, glass, and others, impedes global market expansion. Several end users globally prefer these alternatives due to their multiple advantages. For instance, stainless steel cups are highly durable and resistant to bacteria. Plastic cups are also durable & economical and can be used for both hot and cold beverages. Furthermore, glass and ceramic cups are aesthetically appealing and available in multiple attractive designs. These benefits of substitute products increase consumer inclination toward them and impact product demand.

Paper Cups Market Trends

Rising Demand for Eco-friendly and Recyclable Products to Boost Product Sales

Numerous food service providers are shifting their preference from plastic and foam-based cups to eco-friendly beverage ware to limit the environmental impact of their operations. In addition, the rising demand for eco-friendly and sustainable products among environmentally conscious individuals globally boosts the demand for sustainable drinkware. These factors provide opportunities to the players operating in the market. The product is environmentally friendly as it is compostable, recyclable and developed using renewable resources. Furthermore, growing environmental awareness fuels the demand for eco-friendly tableware products among consumers.

Impact of COVID-19

The COVID-19 pandemic significantly impacted the global paper cups market growth owing to travel restrictions and lockdowns imposed by governments across countries in 2020. Most quick-service restaurants across countries were shut down. Furthermore, the COVID-19 pandemic disrupted the supply chain & manufacturing, leading to product shortages owing to product delays due to raw material shortages, factory shutdowns, and transportation disruptions. However, lockdowns and restrictions led to a surge in takeaway and delivery services, thus driving product demand.

SEGMENTATION ANALYSIS

By Type

Increasing Consumption of Cold Beverages to Boost Cold Paper Cup Demand

The global market is bifurcated into cold paper cups and hot paper cups based on type.

The cold paper cups segment dominated the market in 2024 owing to wide product availability across countries and increasing consumption of various cold beverages, including soft drinks, cold coffee, iced tea, and juices. Moreover, cold paper is designed to prevent leakage, ensuring the cup remains intact when holding cold beverages. Furthermore, various market players are launching new products. For instance, in February 2024, LINSTOL, a U.K.-based inflight passenger product manufacturer, launched its new paper cup for cold beverages in flight, the Super Cool Cup.

The hot paper cups segment is expected to grow significantly over the forecast period owing to the increasing number of various coffee chains, including Starbucks and Costa Coffee, coupled with the rising popularity of hot paper cups with thermal insulation, keeping beverages warmer for longer periods.

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By Wall Type

Wide Product Availability Across the Globe to Favor Sales of Single Wall Paper Cups

The global market is bifurcated into single wall paper cups and multiple wall paper cups based on the wall type.

The single wall paper cups segment dominated the market in 2024 owing to wide product availability by several key market participants. Moreover, single wall cups are usually more cost-effective compared to others, thus boosting product demand among budget-conscious consumers.

The multiple wall paper cups segment is expected to grow significantly during the forecast period. These cups are designed to offer superior heat insulation, making them ideal for serving hot beverages. Moreover, the owing to rising product demand for cold beverages, various market players are launching new products. For instance, in September 2024, SEDA North America, a U.S.-based packaging solutions company, launched its new compostable Double Wall cold paper cups and EcoFit lid. According to the company, the cups are BPI-certified, and its patented air gap design keeps beverages colder for longer periods as compared to single wall cups.

By End-User

Increasing Number of Food Delivery Apps and Takeaway Services to Favor Market Expansion

The market is segmented into households, quick service restaurants (QSR), and others based on end-user.

The quick service restaurants (QSR) segment dominated the market in 2024 owing to the increasing number of food delivery apps and takeaway services coupled with the growing trend of on-the-go beverages. According to the International Franchise Association, Franchise outputs in the QSR industry are projected to increase by 2.5% in 2023 to a total of 196,858 units. Moreover, restrictions and bans on single-use plastics by governments across countries fuel the segment’s growth.

The households segment is expected to grow significantly in the coming years owing to increasing environmental awareness among individuals and rising various home-based activities, including birthday parties, barbeques, and family gatherings.

Global Paper Cups Market Regional Outlook

Geographically, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America dominated the paper cups market share in 2024. Growing environmental awareness among individuals, coupled with the presence of prominent market players across the U.S. and Canada, fuels the market growth. Moreover, the fast-paced lifestyle in the region boosts the demand for on-the-go beverages, such as coffee, tea, and soft drinks.

The U.S. is the most prominent country in the region owing to the presence of prominent companies and the growing number of quick-service restaurants coupled with growing coffee consumption. Several prominent players are focusing on launching new products to diversify their portfolios. For instance, in March 2023, WinCup, Inc., a U.S.-based paper cup company, launched a range of plastic-coated paper cups made with material derived from canola oil.

Europe

Europe is expected to grow significantly throughout the forecast period. The rising government focus on sustainability across Europe, coupled with the implementation of directives banning or restricting the use of single-use plastics on the market of EU Member States, fuels the market growth. Moreover, governments across countries, including the U.K., France, and Germany, are launching awareness campaigns and promoting the adoption of eco-friendly options, thus boosting product demand. Furthermore, an increasing number of eco-conscious consumers across countries boost the demand for sustainable products made using eco-friendly materials.

Asia Pacific

Asia Pacific is expected to grow significantly throughout the forecast period. The high presence of coffee and tea-consuming population across India, China, & Japan, coupled with a growing fast-food & takeaway culture owing to rising urbanization & busy lifestyles, fuel market growth. Additionally, the increasing number of food delivery services and online food ordering platforms coupled with rising consumption of fast food across countries boost product demand. Furthermore, governments across countries are implementing strict regulations to reduce plastic waste, and many companies are actively seeking eco-friendly alternatives to plastic packaging, aligning with sustainability goals, which fuels market growth.

South America

South America is expected to grow considerably throughout the forecast period. The increasing environmental awareness among individuals and companies incorporating sustainable practices to align with their corporate social responsibility boosts product demand. Several countries in the region, including Brazil, Argentina, and Colombia, are introducing stricter regulations to reduce single-use plastic usage and encouraging sustainable alternatives, including paper cups. Furthermore, coffee consumption is deeply rooted in South American culture, with countries such as Brazil being one of the top coffee consumers globally. According to the Brazilian Coffee Industry Association, 21.7 million coffee bags were consumed in 2023 across Brazil.

Middle East & Africa

Middle East & Africa is expected to grow considerably throughout the forecast period. The rapid expansion of quick-service restaurants (QSR) and fast-food trucks in urban areas across the region propels product demand. Global QSR chains, such as McDonald's, Starbucks, and KFC, are significantly growing their footprint, offering beverages & takeout services across major cities, including Dubai, Riyadh, Cairo, and South Africa, boosting product demand. Furthermore, the increasing number of food & music festivals and global sports events across the region fueling beverage consumption among attendees & tourists, thus propelling the market growth.

COMPETITIVE LANDSCAPE

Key Industry Players:

Prominent Players Focusing on New Sustainable Products to Boost Product Sales

Intense competitive rivalry characterizes the global market. International prominent market players leverage their strong brand loyalty and presence to stay ahead of the competition. Several key market players are focusing on launching new eco-friendly products made using chemical-free and biodegradable materials owing to increased demand from eco-conscious consumers.

Major Players in the Paper Cups Market

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Huhtamäki Oyj, Graphic Packaging International, LLC., Pactiv Evergreen, Dart Container Corporation, and Hotpack Packaging Industries are the prominent players in the market. The global paper cups market is fragmented, with the top 5 players accounting for around 29% of the market share.

List of Key Paper Cup Companies Profiled:

• Graphic Packaging International, LLC. (U.S.)


• Dart Container Corporation (U.S.)


• Georgia-Pacific Consumer Products LP (U.S.)


• THE PRINTED CUP COMPANY (U.K.)


• Jiangsu Yinwang New Material Technology Co., Ltd. (China)


• Huhtamäki Oyj (Finland)


• Pactiv LLC. (U.S.)


• Hotpack Packaging Ind. LLC. (UAE)


• Genpak LLC. (U.S.)


• ISHWARA (India)

KEY INDUSTRY DEVELOPMENTS:

• August 2024: Hotpack, a UAE-based food packaging solutions company, launched its new online retail store, Eco Store, exclusively offering eco-friendly products.


• November 2023: SOFi Products, a U.S.-based paper products company, launched its new biodegradable paper cup for hot beverages, SOFI Hot Cup.


• March 2023: Manjushree Packtek Pvt. Ltd, an India-based paper packaging company, acquired Jallan Polypack, an India-based paper cups & lids manufacturer.


• March 2023: Phade, a U.S.-based paper straw & cups company, launched its new PHA-lined (polyhydroxyalkanoate) paper cups for hot beverages.


• February 2023: Hotpack, a UAE-based food packaging solutions company, launched its new manufacturing facility in Qatar. According to the company, the new facility will produce a wide range of products, including paper cups and paper bags.

Investment Analysis and Opportunities

The market report provides comprehensive investment analysis and opportunities in the paper cup industry to provide investors and business leaders with actionable insights seeking innovative packaging solutions. The report also highlights potential investment opportunities, including new product launches, growing production capacity, strengthening retail presence, and geographic expansions.

REPORT COVERAGE

The paper cups market report analyzes the market in-depth and highlights crucial aspects such as prominent companies, and market segmentation, including type, wall type, & end-user. Besides this, the research report also provides insights into the global paper cups market trends and highlights significant industry developments by key players.

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Report Scope & Segmentation