Paper Straw Market Size was valued at USD 1.35 billion in 2023. The paper straw industry is projected to grow from USD 1.54 billion in 2024 to USD 3.80 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.80% during the forecast period (2024 - 2032). The growing food service industry and the shift in consumer preference towards sustainable packaging solutions are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Brand owners are going toward offering consumers eco-friendly packaging products and cutlery as a result of realizing the obligations related to their business. Manufacturers, brand owners, and retailers provide reusable, recyclable, or biodegradable packaging solutions. For instance, in 2021, Sun-Rype Products, a division of A. Lassonde Inc., a Canadian manufacturer of fruit-based food & beverages, announced that they had replaced all plastic straws on all SunRype 200ml single-serve beverage boxes in Canada with a recyclable, bendable paper straw. SunRype's 200ml 100% juice and 200ml 60% less sugar juice products fall under this category.
Consumers' increased awareness of climate change, the focus on reducing plastic use, and severe government rules and mandates to reduce plastic waste are key factors anticipated to drive the market potential for eco-friendly straws. For instance, in 2019, the Rwanda Environment Management Authority (Rema) passed a regulation prohibiting the use, manufacturing, import, and sale of single-use plastic products to ensure environmental safety and reduce plastic waste to protect the environment.
Additionally, the startup has been working with tribal people in India's northeast to manufacture bamboo cutlery, packaging, and straws. For instance, in January 2022, Bambrew raised nearly US$ 2.35 million in its pre-Series A funding round. The startup would be looking to expand its supply capacity with this funding. Furthermore, Bambrew will invest in R&D and strive to grow its workforce, which has enhanced the paper straw market CAGR across the globe in recent years.
The market has expanded more quickly due to the prohibition of plastic straws in many countries. It is anticipated that consumer demand for long-lasting and environmentally friendly alternatives to plastic straws will increase throughout the forecast period. For instance, in October 2021, Nestlé Brazil announced using 100% paper straw for its Nescau, Nesquik, Ninho, and Farinha Láctea brands in Colombia. The company destroyed 10 million plastic straws and wrappers. Additionally, teams eliminated using 70 million plastic straws in Malaysia and Indonesia, preventing the consumption of 1,700 tonnes of plastic in the process, another factor driving the growth of the paper straw market revenue.
The paper straw market segmentation, based on type, includes flexible and non-flexible. The non-flexible segment held the majority share in 2021 of the paper straw market revenue. Due to their use in the fast-food industry and developing countries, non-flexible straws with a straight body are more popular. Flexible straws, on the other hand, are preferable since they make drinking simple from various angles and positions. They are considered a more sustainable alternative to plastic straws because they are made of paper. They are recyclable and 100% biodegradable. They decompose fully in two to six weeks, unlike plastic straws, which can take hundreds of years to dissolve.
The paper straw market segmentation, based on end-use, includes household and commercial. The commercial segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2024-2030 due to the extensive use of paper straw in the restaurant and cafe industries. This growth is attributable to an increased usage of environmentally friendly alternatives for single-use disposable products. As a result, it restricts or reduces plastic straws, other throwaways, and single-use goods. Due to growing environmental awareness and increased single-use plastic bans in the commercial sector, the paper straw market is anticipated to experience significant growth shortly, positively impacting the market growth.
Figure 2: Paper Straw Market by End-Use, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Paper Straw market accounted for USD 0.56 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. It is because paper straw is becoming increasingly popular in this area. Due to regulatory restrictions and bans on the use of plastic, the growth of the food and beverage industry, and the large production and consumption of paper straw in this region, the Asia-Pacific region dominates the paper straw market.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: PAPER STRAW MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America paper straw market accounts for the second-largest market share. It is a result of the increased use of reusable straws. The rise in producers and suppliers is mostly responsible for market expansion. In the US, more consumer exposure to natural drinks is anticipated to fuel market expansion. As concerns about plastic pollution and government ban spread across the nation, the use of reusable straws is expected to increase. New companies are starting in the US to offer affordable and sanitary alternatives to plastic straws. Further, the US paper straw market held the largest market share, and the Canada paper straw market was the fastest-growing market in the North America region.
The Europe paper straw Market is expected to grow at the fastest CAGR from 2024 to 2030. The rise of the industry in Europe is linked to an increase in demand for paper-based straw in countries like the United Kingdom and Germany. It is mostly due to the growing use of these straws in the food service industry. Moreover, the regional business is anticipated to grow due to the strong impact of governmental and environmental laws and changes in European countries that prohibit plastics. Moreover, the Germany paper straw market held the largest market share, and the UK paper straw market was the fastest-growing market in the European region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the paper straw industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the paper straw industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the paper straw industry has provided straws with some of the most significant benefits. The paper straw market major player such as Huhtamäki Oyj, Hoffmaster Group Inc., Biopac Ltd, ECOPRO2, The Paper Straw Co., and others are working on expanding the market demand by investing in research and development activities.
Huhtamäki Oyj (also known as Huhtamaki) is a Finnish consumer packaging company that manufactures food packaging, disposable containers, egg cartons, and fruit packaging for quick-service restaurants, coffee shops, retail stores, caterers, and vending operators. Its headquarters are in Espoo, Finland, and it operates globally. In terms of revenue, Huhtamaki was Finland's 22nd-largest company. Huhtamaki was established as a confectionery manufacturer, but over time it evolved into an industrial conglomerate and became a major player in consumer packaging. In May 2019, Huhtamaki Oyj opened a plant to produce paper straw in Northern Ireland. The facility is situated in Antrim, near Belfast. It is anticipated that this development will increase the company's range of paper-based products.
The late B.T. Hoffmaster founded the Hoffmaster Group Inc. in February 1947 to manufacture products made of paper napkins. Initially, the company was situated on the second floor of a warehouse in Oshkosh, Wisconsin. The firm employed four workers with one standard machine for producing printed paper napkins. By providing restaurants with placemats, matched dinner and cocktail napkins, and a complete printed ensemble, the company improved its reputation and market share. The introduction of disposable tablecloths in decorator color was another development during this period. In May 2019, The Paper Straw Co (UK), a company that manufactures paper straw in the United Kingdom, was acquired by Hoffmaster Group, Inc. (USA). The company aims to expand its activities in the European market for paper straw products through this strategic acquisition and expand its product line.
April 2022: The first U-shaped paper straw manufacturing line in India has been announced by UFlex Limited, a flexible packaging material solution, and polymer science company, as part of its initiative to bring about a sustainable shift. The production line was set up at the company's Sanand, Gujarat, aseptic liquid packaging facility.
July 2022: The official launch of its U-shape paper straw solutions for the Indian market was announced by Lamipak, one of the leading providers of aseptic packaging products and services. By the third quarter of this year, Lamipak hopes to expand its capacity in Indonesia, where it currently operates a production line for U-shaped paper straw. When both paper straw production lines are fully operational, they will each produce 200 million straw each month, with an additional 100 million per month added in 2023.
May 17, 2023 - At the National Restaurant Association Show, May 20–23, 2023, Hoffmaster Group, Inc, a leading producer of high-end foodservice single-use tableware, will introduce the Earthwise Wood Cutlery Dispenser System and Earthwise Compostable Plant-Based Straws. The new environmentally friendly product will be on display at Hoffmaster's booth #9212.
February 27, 2023- A prominent maker of foodservice paper and parchment goods, Paterson Pacific Parchment Company ("Paterson" or "Paterson Paper") has been acquired by Hoffmaster Group, Inc, a leading U.S. manufacturer of quality disposable dinnerware. As a member of its family of production facilities, Hoffmaster will take over operations for Paterson.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 1.35 billion |
| Market Size 2024 | USD 1.54 billion |
| Market Size 2032 | USD 3.80 billion |
| Compound Annual Growth Rate (CAGR) | 13.80% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End-Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Huhtamäki Oyj, Hoffmaster Group Inc., Biopac Ltd, ECOPRO2, and The Paper Straw Co. |
| Key Market Opportunities | National governments globally are slowly banning plastic in commercial packaging |
| Key Market Dynamics | The growth of the food service industry The shift in consumer preference toward sustainable packaging solutions |
Paper Straw Market Highlights:
Frequently Asked Questions (FAQ) :
The paper straw market size was valued at USD 1.35 Billion in 2023.
The market is projected to grow at a CAGR of 13.80% during the forecast period 2024-2032.
Asia-Pacific had the largest share in the paper straw industry.
The key players in the market are Huhtamäki Oyj, Hoffmaster Group Inc., Biopac Ltd, ECOPRO2, and The Paper Straw Co.
The non-flexible category dominated the market in 2021.
The commercial segment had the largest share in the market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
