Food Service Disposable Industry Overview
The global food service disposable market size is expected to reach USD 79.2 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.9% over the forecast period. The increasing popularity of Quick-Service Restaurants (QSRs), especially in the developing regions, such as Asia Pacific, owing to hectic work schedules is expected to aid the market growth over the forecast period. The online food delivery application segment is expected to register the highest CAGR over the forecast period, which is propelled by the outbreak of COVID-19 causing a rise in online food delivery across the globe. In 2020, the online food delivery services sector was valued at over USD 21.3 billion, which is expected to increase rapidly in the future. Disposable products, such as aluminum foil containers, paper cups, and paperboard boxes, are largely used in the packaging of online food delivery.
The lockdowns imposed in various regions to limit the spread of the disease played a major role in the exponential growth of the market in 2020. Moreover, increased awareness regarding food delivery platforms during the COVID-19 pandemic is expected to augment the growth of online food delivery platforms in the coming years, which, in turn, is likely to drive the market. Food service disposable products are also used in fast service restaurants and establishments, such as food trucks, unlike hotels that mainly use reusable cutlery. The rapid shift of consumer preference from restaurants, hotels, and café to food trucks as a result of rising popularity is expected to benefit the market growth.
Moreover, food trucks offer a variety of cuisines at relatively lower prices than restaurants. They are also increasingly being used as a marketing tool. Restaurants with brick-and-mortar structures are using food trucks to market their unique cuisine as they can easily reach their target customers. Thus, an increasing number of food trucks is expected to favor market growth.
The food service application segment accounted for the highest share in 2020. Fast-food joints, cafes, and only-takeaway food service providers are part of this segment. Certain fast-food chains, such as McDonald’s, only use disposables even if the customers are dining in, due to cost benefits, which is expected to drive the segment growth. Manufacturers are focusing on introducing sustainable products to meet the changing consumer demands. For instance, In July 2019, Huhtamaki launched a new compostable Bioware Impresso double-walled hot cup using sustainable 100% PEFC (Programme for the Endorsement of Forest Certification)-certified paperboard with a plant-based coating on the inside.
Food Service Disposable Market Segmentation
Grand View Research has segmented the global food service disposable market on the basis of packaging type, material, application, and region:
Based on the Packaging Type Insights, the market is segmented into Rigid, Flexible, Wraps & Films, and Others.
- Rigid packaging is mainly used to protect food from spillage and for the convenience of consumers. A variety of rigid packaging is used by foodservice providers depending on the temperature, quantity, and material state of the food. The rigid packaging type includes plates & containers, bowls & tubs, mugs & saucers, lids, and other disposables. Plastic-made rigid products are anticipated to witness substantial growth.
- The flexible packaging type segment is estimated to record the fastest CAGR from 2021 to 2028. The high growth is attributed to the rising demand for flexible paper packaging as a result of government restrictions on single-use plastic products in many regions, such as Europe. The food service providers are now able to pack almost all kinds of foods in flexible packaging materials, such as pouches, wraps, and films, as they are unbreakable, lightweight, and more convenient than rigid products.
Based on the Material Insights, the market is segmented into Plastic, Paper & Paperboard, Bagasse, Polylactic Acid, and Others.
- Plastic containers can be single-use or multi-use. Single-use plastic accounts for the high share of global plastic waste and is harmful to the environment. As a result, the consumption of single-use plastic is expected to decline at a significant rate in the coming years. However, the outbreak of COVID-19 has propelled its consumption and delayed its decline as consumers find it to be a safer option than reusable products.
- Paper and paperboard packaging has been witnessing high growth over the past few years, especially replacing popular disposables, such as plastic cups. Paper & paperboard is used to make various other products including plates, trays, bowls, straws, egg cartons, and tray liners. Paper-based takeaway containers are an affordable and eco-friendly option in the market.
Based on the Application Insights, the market is segmented into Food Service, Full Service, Quick Service, Others, Online Delivery, and Institutional.
- The food service application segment led the market with a revenue share of more than 51% in 2020. The dynamics of the food service industry are changing rapidly, which is expected to aid in the growth of the food service disposables market. Moreover, increasing demand for takeaways and online food delivery services will boost the market growth. The COVID-19 pandemic had an adverse impact on the industry as all the food service businesses were closed due to strict lockdowns imposed across several countries.
- Institutions, such as schools, colleges, universities, hospitals, correctional facilities, public & private cafeterias, nursing homes, and day-care centers, such products on a daily basis. Unlike restaurants & hotels, where there is dedicated staff for serving food and cleaning tables & utensils, institutions often prefer third parties, such as catering services and non-governmental organizations, for meals. Therefore, the consumption of the institutional application segment is less prone to fluctuations and tends to stay consistent.
Food Service Disposable Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies & Market Share Insights
The market players are adopting several business strategies to gain a competitive edge over others. For instance, Berry Global Inc. introduced pivot clear cups. As the consumption of niche beverages, such as frozen, blended, and mixed, is increasing so is the requirement for cost-effective, high-quality, single-use clear cups. These cups are made from an exclusive polypropylene blend that offers advantages over clear cups in the market.
The COVID-19 pandemic adversely affected the market and companies faced a decline in product demand due to restrictions on import & export and transportation in the first quarter of 2020. However, with ease in lockdown restrictions, the product demand witnessed a swift rise. In addition, the product application scope has increased as consumers are preferring disposables over re-usable food containers due to safety concerns. Some of the prominent players in the global food service disposable market include:
- Huhtamaki Food Service
- Graphic Packaging International LLC
- Sonoco Products Company
- Sabert Corp.
- Genpak LLC
- Pactiv LLC
- Contital Srl
- Go Pak Group
- R+R Packaging Ltd.
- Interplast Group
Order a free sample PDF of the Food Service Disposable Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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