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The foodservice disposables market size is forecast to increase by USD 10.65 billion at a CAGR of 4.78% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. Firstly, the expansion of food delivery and takeaway markets is fueling demand for disposable packaging and service ware. Secondly, the increasing adoption of online ordering and delivery services is leading to a rise in the use of disposables to ensure convenient and contactless transactions. Additionally, there is a growing focus on sustainability, with the adoption of reusable service ware and packaging becoming more prevalent in the industry. These trends are shaping the market, presenting both opportunities and challenges for market participants.
The market encompasses a wide range of products used in Quick-Service Restaurants (QSRs) and food delivery services. These disposables include plates, containers, bowls, tubs, mugs, and saucers, primarily made of rigid packaging types. The increasing trend of food delivery through online applications such as Uber Eats and others has led to a significant demand for foodservice disposables. Rapid urbanization and changing lifestyles have resulted in an increased need for disposable facility demand in the foodservice industry. Hygienic containers are essential in the online delivery sector to ensure the safe transportation of ready-to-eat products. Struggling restaurants are turning to permanent presence through mobile restaurants, which also require disposable meal delivery facilities. Geographical regions witness varying demands for foodservice disposables due to cultural differences and consumer preferences. The disposable industry continues to grow as consumers increasingly opt for convenience and ease in meal ordering and delivery. The online channels have become integral to the foodservice industry, providing consumers with a diverse range of options for food delivery.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The rigid segment is estimated to witness significant growth during the forecast period. The market encompasses a wide range of products, including plates and containers, bowls and tubs, mugs and saucers, and stiff plastic items such as cutlery, cups, trays, and glassware. These disposables are extensively used in the foodservice industry, particularly in fast-paced environments, due to their convenience and cost-effectiveness. Beverages, both hot and cold, are commonly served in disposable cups, while insulated packaging ensures the temperature stability of ready-to-eat foods. Flexible paper packaging, including takeaway cartons, has gained popularity as an eco-friendly alternative to traditional plastic containers. Regulatory limitations and growing consumer awareness of the environmental impact of single-use plastic items have led to the exploration of alternative materials.
Moreover, modern consumers increasingly prefer waste-free options, and companies like Delivery Hero SE are responding by offering plant-based alternatives and eco-friendly packaging made from paper and paperboard, aluminum, plant fiber, foam, and clamshells. Bowls made from plant pulp and fiber are becoming increasingly popular, offering a sustainable and biodegradable alternative to plastic. Restaurants, hotels, cafes, and food delivery services are all adopting these eco-friendly options to reduce their carbon footprint and cater to the evolving preferences of their customers. The packaged food industries and online foodservice applications are also embracing these trends, recognizing the importance of sustainability in the foodservice sector.
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The rigid segment was valued at USD 25.69 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market encompasses a wide range of products, including plates and containers, bowls and tubs, mugs and saucers, and various types of packaging for beverages. These items are predominantly made of stiff plastic products, yet insulated packaging and flexible paper packaging are also common choices. Modern consumers are increasingly conscious of the environmental impact of their choices, leading to a growing demand for eco-friendly options such as plant-based alternatives and waste-free solutions. Regulatory limitations on single-use plastic items have further fueled this trend. Plastic remains a popular material for disposable containers, trays, cutlery, and cups due to its durability and cost-effectiveness.
However, paper and paperboard packaging, takeaway cartons, and aluminum are also commonly used. Innovations in plant fiber, foam, and clamshells, as well as biodegradable and fiber bowls made from plant pulp, offer sustainable alternatives to plastic. The food delivery services sector, including companies like Delivery Hero SE, has significantly contributed to the growth of the market. The rise of online foodservice applications and the Packaged Food Industries have further boosted demand for disposable containers. Despite the convenience and cost savings offered by disposable packaging, concerns over its environmental footprint continue to mount. As a result, the market is witnessing a shift towards more sustainable options.
Also, restaurants, hotels, cafes, and other foodservice establishments are major consumers of disposable packaging. The choice of material and design depends on various factors, including cost, functionality, and consumer preferences. The market is expected to continue its growth trajectory, driven by the increasing popularity of ready-to-eat foods and the expanding food delivery services sector.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of food delivery and takeaway markets is the key driver of the market. The market is experiencing notable expansion, driven by the rising demand for spillage-proof packaging in the fast food and ready-to-drink beverages industries. The increasing preference for eco-friendly disposables, such as recyclable plastics and plant-based disposables, is also fueling market growth. However, concerns regarding the use of carcinogenic chemicals like formaldehyde and styrene in disposables, particularly in the plastic and foam segments, are posing challenges.
In response, there is a growing trend towards plant-fiber derived disposables, such as disposable paper straws, which offer a more sustainable alternative. Key players in the market include Delivery Hero, Domino's, Just Eat, and Foodler, who are leveraging the convenience of online food ordering to increase sales. The market is expected to continue its growth trajectory, with the plastic and foam segments dominating the landscape while the plant-fiber derived disposables segment gains traction.
The rising adoption of online ordering and delivery services is the upcoming trend in the market. The market has witnessed a significant increase in the adoption of online ordering and delivery services in recent years. This trend is driven by the convenience it provides to both restaurants and consumers. Online ordering enables customers to place orders from the comfort of their homes or workplaces, while restaurants can streamline their processes, reducing the need for staff and enhancing efficiency. The COVID-19 pandemic has further accelerated this trend as more individuals opt for contactless delivery options. In terms of product offerings, the market encompasses various types of disposable packaging, including spillage-proof packaging, eco-friendly disposables, and recyclable plastics.
Also, the plastic segment, which includes polystyrene (Styrene) and polypropylene, dominates the market. However, concerns regarding the use of carcinogenic chemicals such as formaldehyde and styrene have led to the emergence of alternative options. Plant-based disposables derived from plant fibers have gained popularity as a sustainable alternative to traditional disposables. These include plant-derived plastics and disposable paper straws. The foam segment, which includes expanded polystyrene (EPS), is under scrutiny due to its environmental impact.
As a result, there is a growing demand for eco-friendly alternatives, such as plant-based disposables, in the foodservice industry. Fast food chains and ready-to-drink beverage companies are major consumers of disposable packaging. The market for disposable straws, for instance, is segmented into plastic straws and disposable paper straws. The shift towards eco-friendly alternatives is expected to drive the demand for disposable paper straws in the coming years. Overall, the market is expected to continue its growth trajectory, driven by the convenience it offers and the increasing demand for sustainable alternatives.
The increasing focus on use of reusable service ware and packaging is a key challenge affecting the market growth. The market encompasses various types of packaging and utensils used in the food industry, including spillage-proof packaging, eco-friendly disposables, and recyclable plastics. However, concerns regarding the environmental impact of these products persist. For instance, some disposables, such as paper coffee cups with plastic coatings, pose challenges for recycling and composting, leading to their disposal in landfills. Major sources of waste include straws, coffee sleeves, condiment packets, chopsticks, plastic utensils, and plastic bags. To mitigate the environmental concerns, the foodservice industry is shifting towards eco-friendly alternatives. These include plant-based disposables derived from renewable resources and recyclable plastics. However, it is essential to ensure that these alternatives do not contain harmful chemicals such as formaldehyde, styrene, and carcinogenic substances.
Moreover, the plastic segment and foam segment dominate the market. However, the demand for plant-fiber derived disposables is increasing due to their eco-friendliness. For example, disposable paper straws are gaining popularity as an alternative to plastic straws. Fast food chains and ready-to-drink beverage companies are major consumers of foodservice disposables. Therefore, their efforts towards sustainability can significantly impact the market trend. For instance, some QSRs and restaurants have already started replacing disposable utensils and containers with reusable service ware to reduce waste generation.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor Plc - The company offers disposal food packaging solutions by AmPrima Recycle Ready Solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a significant sector within the broader food industry. This market encompasses a wide range of products used in foodservice operations, including plates, bowls, cups, cutlery, and food packaging. The demand for foodservice disposables is driven by various factors, such as the increasing number of foodservice outlets, growing consumer preference for convenience, and the need for food safety and hygiene. Foodservice disposables play a crucial role in ensuring a positive dining experience for customers. They help maintain food quality, preserve freshness, and facilitate easy transportation and consumption of food.
Additionally, the ongoing trend towards sustainable and eco-friendly practices in the foodservice industry is driving innovation in the disposables market, with an increasing focus on biodegradable and compostable materials. The market is expected to grow steadily in the coming years, fueled by the expanding foodservice industry and evolving consumer preferences. Key players in this market are focusing on product innovation, sustainability, and cost-effectiveness to meet the demands of customers and stay competitive.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.78% |
Market growth 2024-2028 |
USD 10.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.33 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, Anchor Packaging LLC, Berry Global Inc., Campbell Soup Co., Carlisle Companies Inc., Cascades Inc., Coveris Management GmbH, D and W Fine Pack, Dart Container Corp., Fabri Kal Corp., Genpak LLC, Gold Plast SpA, Graphic Packaging Holding Co., Huhtamaki Oyj, Novolex, Placon Corp., Reynolds Packaging, Sealed Air Corp., Sonoco Products Co., and WestRock Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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