The global portion cups market is estimated to be valued at US$ 726.4 million in 2019. The market is projected to expand at a CAGR of 6.9% during the forecast period of 2019-2027.
Increasing Preference for Biodegradable Portion Cups among Manufacturers and Consumers Driving Market Growth
By material type, the global portion cups market is segmented into plastic, papers, aluminum foil, and sugarcane and others. The plastic segment is further sub-segmented into polypropylene (PP), polyethylene (PE), polyamide (PA), bioplastics, polyester (PET), and polystyrene. PE is further categorized into LDPE and HDPE, while bioplastics are categorized into PLA, PHA, and starch blends.
Polypropylene is the majorly preferred material for the production of portion cups in the present market scenario. The high thermo-formability of the material has driven the market segment. The high melting temperature of the material has made PP portion cups preferable for hot food products such as soups and hot dips. Moreover, for reheating purposes, polypropylene is highly suitable among other conventional plastics. In 2019, the polyethylene segment is estimated to account for more than half of the global potion cups market share.
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Relatively the low melting point of polyethylene has restrained the market size of PE portion cups in the global market. Polyamide portion cups have significant preference among food industries for the packaging of processed food products on the backdrop of the high barrier properties offered by the material. Although, limited demand for packaged sauces and condiments in portion cups has restrained the global portion cups market share of the polyamide material segment in the present market scenario.
Owing to significant availability of polystyrene at low costs and the low density of the material resulting into higher number of portion cups in one-unit weight of the material as compared to other materials, polystyrene material has gained considerable preference among portion cup manufacturers. Thus, the low cost born by consumers has resulted into significantly paced growth of the polystyrene portion cups market segment during the forecast period.
All the plastic materials mentioned in the above context are oil-based or conventional plastics, which are not biodegradable or compostable, posing a serious threat to the environment. Thus, the manufacturers of portion cups as well as consumers are moving towards the adoption of biodegradable solutions such as bioplastics. PLA (Poly Lactic Acid) is a majorly preferred bioplastic material for the production of food service containers, including portion cups. This is due to its high barrier properties, high formability, and significant availability as compared to other bioplastics. Although, the high price of bioplastic materials has restrained the demand for bioplastic portion cups among consumers. The bioplastics segment is anticipated to register a substantial growth rate as compared to other portion cups by material type.
Paper is another biodegradable material that is abundantly available at low costs across the globe. The easy formability of paper allows flexibility to producers to manufacture portion cups with high aesthetics and appealing designs. Although, a thick coating of plastic material is required for the paper to withstand moister from the food product and protect its structure stability. Moreover, paper portion cups are not suitable for long duration use. These factors have limited the market share of paper portion cups in the global portion cups market, while the demand for biodegradable solutions has secured the paper portion cups market segment.
Sugarcane and other naturally-occurring materials are readily gaining traction among consumers, owing to the biodegradable property and attractive aesthetics of such portion cups. Although, limited availability of suitable raw materials and difficulties in production have limited the market share of sugarcane portion cups.
Important companies functioning in the global portion cups market are Huhtamaki Oyj, Berry Global Inc., Sonoco Products Company, Dart Container Corporation, Genpak LLC, Placon Corporation, D&W Fine Pack LLC, Pactiv LLC, Georgia-Pacific Corp., Amhil Enterprises Ltd., Fabri-Kal Corporation, Winpak Ltd., Polar Pak Company, Eco-Products, Inc., Graphic Packaging International, Sabert Corporation, Nature Works LLC, London Bio Packaging, World Centric, and BSI Biodegradable Solutions.
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Increased Demand as Substitute in Restaurants and Hotels to Propel Growth of Portion Cups Market
The portion cups market is prognosticated to record steady growth through the forecast period of 2019-2027. The increasing usage of portion cups across a plethora of applications may bring tremendous growth opportunities for the portion cups market. The high-temperature resistibility and other properties make portion cups a perfect match for various applications. The high-barrier properties also serve as a prominent growth factor for the portion cups market. Thus, all these aspects bring immense growth opportunities for the portion cups market.
- The growing number of hotels and restaurants across the globe is a great growth generator for the portion cups market. The rising awareness regarding the use of portion cups among a massive number of end-users may also prove to be a prominent growth accelerator for the portion cups market. The preference for smaller portions of food among a large chunk of the populace will assure extensive growth opportunities for the portion cups market.
- These cups prevent spillage and maintain the temperature of the food product, thus increasing the growth rate of the portion cups market. The shift of consumers toward convenience and high-quality food may further influence the growth of the portion cups market to a certain extent.
- The novel coronavirus pandemic has affected the packaging sector greatly. The increase in the spread of the virus and the high fatalities linked to it forced numerous countries to impose strict lockdown restrictions. These restrictions disrupted the portion cups market substantially. All the manufacturing facilities and production units were closed, eventually causing a decline in production. The closure of restaurants and hotels led to a decrease in demand.
- However, the demand for portion cups surged exponentially in the post-lockdown era. Numerous governments gave the green signal for opening of restaurants. Hotels, cafes, and restaurants have started using disposable paper cups instead of glasses to prevent the spread of the virus. This aspect may increase the growth prospects of the portion cups market.
