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The paper straw market size is forecast to increase by USD 1.8 billion, at a CAGR of 28.78% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of eco-friendly materials in the manufacturing process, driven by the expanding global commercial beverage dispenser market. The shift towards sustainable biomass sources, such as recycled paper, is a key trend in the industry. The use of water-based adhesives in place of traditional petroleum-based adhesives is another trend, aligning with the bioeconomy movement. The market faces challenges including the volatility of raw material prices and the need for advanced manufacturing technologies, such as slot machines and core winding machines, to produce high-quality, consistent straws. The u-shaped growth of the market is expected to continue, with opportunities arising from the increasing consumer awareness and demand for environmentally friendly alternatives to plastic straws.
The market is witnessing significant growth due to increasing awareness towards renewable resources and the environmental impact of plastic straws. Plastic pollution has become a major concern, leading to the adoption of sustainable products like paper drinking straws. A paper straw is a tube-like structure made from renewable resources, suitable for use with beverages. The market offers both printed and non-printed paper straws, available in straight and u-shaped designs. The manufacturing process of paper straws involves using water-based adhesives, ensuring a sustainable and eco-friendly production. Households and businesses are shifting towards paper straws as part of their corporate sustainability initiatives.
However, the market is witnessing material innovation, with advancements in manufacturing technology using slot machines and core winding machines. Paper straws serve as a viable alternative to single-use plastic straws, contributing to the reduction of plastic materials in the market. The market growth is driven by the increasing demand for sustainable products and the negative environmental impact of single-use plastics. The shift towards paper straws is expected to continue, with the market experiencing steady growth in the coming years.
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 virgin paper straw segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to increasing sustainable choices among consumers and growing concerns over environmental issues. Virgin paper straws, made exclusively from virgin paper material, are gaining popularity as sustainable alternatives to plastic straws. The superior qualities of virgin paper, such as excellent strength, printability, brightness, and opacity, make it the preferred material for straw production in the food and beverage industry. The increasing urbanization and rising demand for eco-friendly straws are key drivers of the virgin paper straw segment in the global market. Furthermore, environmental initiatives to reduce plastic waste and promote the use of paper straws are fueling market growth.
Both printed and non-printed paper straws are in demand, with the former offering customization options for branding and the latter maintaining a minimalist, eco-friendly aesthetic. The market is expected to continue expanding during the forecast period, driven by consumer preferences for sustainable options and the negative impact of plastic straws on the environment.
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The virgin paper straw segment was valued at USD 268.20 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 33% 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 has gained significant traction in recent years due to increasing consumer awareness towards sustainable choices and environmental issues. Traditional plastic straws have raised concerns regarding their non-biodegradable nature and negative impact on marine life. As a result, there is a growing demand for sustainable alternatives such as paper straws. These tube-like structures made from virgin paper or sustainable sources are becoming increasingly popular for use with beverages. Companies are taking environmental initiatives to offer printed or non-printed paper straws to meet the demands of both eco-conscious consumers and businesses.
This trend is particularly noticeable in regions like North America, where the shift towards paper straws is driven by both consumer preference and government regulations.
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 global commercial beverage dispenser market is the key driver of the market. The market is witnessing significant growth as renewable resources gain prominence over single-use plastics, which have a detrimental impact on the environment. Plastic straws are a major contributor to plastic pollution, and corporations are increasingly adopting sustainable products as part of their corporate sustainability initiatives.
Paper straws, as a plastic alternative, offer an eco-friendly solution for beverage consumption. Beverage dispensers, commonly found in restaurants, convenience stores, and concession stands, are increasingly offering attached paper straws for customers' convenience. The market for beverage dispensers is maturing in North America and Europe, while APAC is experiencing high growth due to the expansion of organized retail networks.
Adoption of eco-friendly materials to manufacture straws is the upcoming trend in the market. The market is experiencing a significant rise due to the increasing trend towards renewable resources and the growing awareness of the environmental impact of single-use plastics, particularly plastic straws, on the environment. Corporate sustainability initiatives and consumer preferences for sustainable products have led to a rise in demand for eco-friendly alternatives.
Consequently, paper straws manufactured from renewable resources such as bamboo, food-grade silicon, recycled paper, edamame beans, waste hazelnuts, and cocoa beans are gaining popularity. The food and beverage industry's commitment to environmental responsibility is driving the adoption of these sustainable materials. As a result, the market is projected to expand steadily during the forecast period.
The volatility of raw material prices is a key challenge affecting the market growth. The market is experiencing significant growth as renewable resources gain popularity over single-use plastics, such as straws, due to their environmental impact on our planet. Companies in this market face challenges related to the cost and availability of raw materials, primarily paper and recycled paper, which directly influence the price of paper straws. The volatility of raw material prices can negatively affect profit margins for companies.
Additionally, increasing energy and freight costs, as well as raw material shortages, pose further challenges. Corporate sustainability initiatives and the growing demand for eco-friendly alternatives to plastic straws are driving the market forward. However, ensuring a steady supply of raw materials, such as pulp and chemicals, is essential for market growth and maintaining environmental responsibility.
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.
Bygreen: The company offers biodegradable paper straws made from 3 ply premium food grade kraft paper.
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 witnessing significant growth due to increasing environmental concerns and the shift towards sustainable products. Renewable resources, such as paper, are being preferred over conventional plastic straws due to their environmental impact. Plastic pollution caused by single-use plastics is a pressing environmental issue, and paper straws serve as a sustainable alternative. These tube-like structures are used for sipping beverages and come in both printed and non-printed versions. The manufacturing process of paper straws involves the use of virgin paper or recycled paper, water-based adhesives, and slot machines or core winding machines. Paper straws are available in various shapes, including straight and u-shaped, and are used in both households and foodservice outlets.
Further, beverage companies are also embracing the use of bio-based products as part of their corporate sustainability initiatives. The bioeconomy is a growing sector that focuses on the valorization of sustainable biomass sources, such as trees, through biorefinery processes. Paper straws are a part of this sustainable biomass value chain, contributing to the reduction of carbon pollutants and deforestation. Paper straws are available in various sizes, with straw length and diameter being key considerations. They are also available in different shapes and can be used as alternatives to plastic straws, edible straws, metal straws, and glass straws. The market for paper straws caters to both B2B and B2C segments, with foodservice outlets and fast food chains being significant consumers.
Sustainable packaging and institutional use are also driving the growth of the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
130 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.78% |
Market Growth 2024-2028 |
USD 1.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.94 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Germany, Italy, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BioPak Pty Ltd., Bygreen, Canada Brown Eco Products Ltd, Footprint, GP Alliance Sdn Bhd, Hello Straw B.V, Hoffmaster Group Inc., Huhtamaki Oyj, Jinhua Suyang Plastic Production Co. Ltd., Karat by Lollicup, MPM Marketing Services, Novolex, OkStraw Paper Straws, Sharp Serviettes, Shenzhen Grizzlies Industries Co. Ltd., Soton Daily Necessities Co., Ltd. Y.W., Tetra Laval SA, The Paper Straw Co., Transcend Packaging Ltd., and YuTong Eco Technology SuQian Co. Ltd. |
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 Material
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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