Morning cup of Joe, driving demand for cups and lids?

A new market study from The Freedonia Group anticipates world demand for cups and lids is projected to rise 5% per year to nearly $26 billion in 2017. Specifically, increases are fueled by growth in the quick service restaurant industry, which will remain the primary user of disposable cups and lids.

The foodservice industry accounts for more than three-fifths of overall market value through 2017. Several trends are bolstering cup and lid demand, which include expanded beverage offerings in quick service and other restaurants, and the significant growth potential in countries with underdeveloped foodservice industries. 

In addition, The Freedonia Group believes demand is also driven by the rising number of coffee shops worldwide, as coffee seems to gain popularity as a beverage consumed away from home. Value gains will be aided by the prevalence of costlier specialty lids in coffee and snack shops.

The fastest overall growth will be in the food and beverage packaging market, due to its convenience, portability, and portion control advantages. Healthy eating trends will provide further upward momentum for yogurt, the largest packaging cup end use. On the other hand, gains will be moderated by competition from pouches in applications such as snacks, candy, sauces, and condiments. 

India and China, highest demand

Overall, the most rapid increases in cup and lid demand will be seen in the world's developing regions, Freedonia states.  Demand in Asia, the Africa/Mideast region, Eastern Europe, and Central and South America will increase faster than the global average, due to rising living standards and the rapidly growing number of limited service restaurants serving on-the-go food and beverages packaged in cups and using lids. 

The highest growth rates are expected in India and China, with Indonesia, Russia, Brazil, and Mexico also projected to see advances.

In contrast, market maturity in developed countries will moderate overall growth.  Still, demand in developed areas will be supported by the increasing use of relatively expensive biodegradable and compostable products, as well as products featuring increased recycled content.