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Paper Straw Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global paper straw products market was valued at USD 6.9 billion in 2022 and is projected to expand at a CAGR of 8.5% from 2023 to 2030. The market is driven by increasing environmental awareness and the need for sustainable alternatives to plastic straws. Paper straws are considered more eco-friendly since they are 100% biodegradable and compostable. Furthermore, various governments around the world are implementing regulations to phase out plastic straws in order to reduce plastic pollution. For instance, in December 2021, the European Union approved a ban on single-use plastic straws, which will come into effect in 2021.
The increasing demand for paper straws in foodservice applications such as restaurants, cafe, bakeries, and bars is expected to support the growth of the market. Moreover, the rising popularity of cold beverages such as mocktails and smoothies is further driving the demand for paper straws. In addition, the emergence of new retail formats such as convenience stores and hypermarkets is expected to create opportunities for the market. Furthermore, the growing demand for paper straws in packaging applications such as pharmaceuticals and cosmetics is expected to drive the market growth.
The market is highly fragmented, with the presence of a large number of small and large players. The market participants are focusing on product innovation and expansion to strengthen their market presence. For instance, in January 2021, Koffie Straws, a U.S.-based company, launched a new line of paper straws made from unbleached paper. The new product is said to be 100% biodegradable, compostable, and chlorine-free. Moreover, the company is focusing on expanding its product portfolio to cater to the growing demand from customers.
The growing trend of customization of paper straws is boosting the market growth. The customization of paper straws is done with the help of printing technology, which allows the manufacturers to offer personalized paper straws. Furthermore, the rising trend of corporate gifting is also driving the demand for customized paper straws. For instance, in October 2021, Eco-Cycle Solutions, a U.S.-based company, launched a new range of customized paper straws. The new product line includes straws that can be printed with the company’s logo or the customer’s logo. The company is focusing on expanding its product portfolio to cater to the growing demand from customers.
Product Insights
The paper straws segment led the market and accounted for a share of around 53.1% in 2022. The increasing demand for environmentally friendly and sustainable products is driving the market growth. Paper straws are a great alternative to plastic straws and are 100% biodegradable. According to an article published by Ecoscraps, in November 2020, paper straws take approximately 4-6 weeks to biodegrade, while plastic straws take anywhere from 100-500 years. In addition, the surge in awareness among consumers regarding the environmental impact of plastic straws is also driving the market growth.
The paper plates segment is anticipated to expand at the fastest CAGR of 5.9% over the forecast period. The growing demand for eco-friendly and sustainable products is driving the market growth. Paper plates are a great alternative to plastic plates and are 100% biodegradable. According to an article published by the Harvard T.H. Chan School of Public Health, in March 2019, paper plates offer a better solution for packaging and disposing of food waste as compared to plastic plates. Furthermore, the increasing trend for using eco-friendly products is also boosting the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment is expected to witness the highest growth rate due to the increasing demand for paper straws from consumers. Supermarkets and hypermarkets offer paper straws in various sizes and colors and provide convenience to customers. The availability of a wide range of paper straws in these outlets also encourages customers to buy paper straws. According to a study by Euromonitor International in 2020, around 53% of consumers prefer to buy paper straws from supermarkets or hypermarkets.
The online segment is expected to witness significant growth in the forecast period owing to the increasing penetration of internet and smartphones. Online players offer a wide range of paper straws at competitive prices. In addition, customers can easily compare the prices of different brands and make informed decisions. Online stores also provide convenience to customers by offering doorstep delivery and cash on delivery services. Online retailing has become popular among millennials, who are the major consumers of paper straws, and is expected to drive the market growth in the forecast period.
Type Insights
The compostable paper straws segment accounted for the largest revenue share of 75% in the year 2022. Paper straws are widely used in the food and beverage industry. The paper straws are made from compostable paper, which decomposes naturally in the environment. The use of compostable paper straws is increasing due to the rising demand for eco-friendly and sustainable products. Furthermore, the growing awareness among consumers about reducing the use of plastic straws has also contributed to the growth of this segment. Additionally, the availability of compostable paper straws in different colours, sizes, and designs is also driving the market.
The non-compostable paper straws segment is anticipated to expand at the highest CAGR of 9.3% over the forecast period. Non-compostable paper straws are made from paper coated with a thin layer of plastic. These straws do not decompose naturally in the environment and are not biodegradable. The non-compostable paper straws are cheaper than compostable paper straws, which makes them more attractive to budget-conscious consumers. The availability of non-compostable paper straws in different shapes, sizes, and designs is also driving the market.
Regional Insights
Asia Pacific is expected to witness the highest growth in the coming years. Governments in countries, such as India and China, are imposing stringent regulations to reduce plastic waste. This has led to the increasing demand for paper straws in the region. For instance, in June 2021, the Indian government banned the use of plastic straws across the country. Moreover, the presence of prominent players, such as Shanghai S.A.P. Environmental Technology Co., Ltd. and Humble Straws, is further expected to drive the regional market growth.
Europe is expected to witness the second-highest growth in the coming years. The increasing awareness regarding the environmental impact of plastic waste is a major factor driving the demand for paper straws in the region. Furthermore, in March 2021, the European Parliament adopted a ban on single-use plastics, such as plastic straws and cutlery, in the European Union to reduce marine pollution. This is expected to create a positive outlook for the market in the region.
Financial Projections
In this part of the paper straw products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your paper straw products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a paper straw products business comes from sales of paper straws, as well as related items such as paper cups, napkins, and other paper products. Here you will find a list with a description of each of these items, as well as other possible sources of profit such as fundraising, bulk orders, and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the paper straw products business running will be described. The list of operating expenses includes raw material costs, wages, transportation costs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the paper straw market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Aardvark Straws launched their new line of paper straws, which are made from sustainable and eco-friendly materials.
– In August 2022, Strawfree launched their new line of paper straws which are 100% biodegradable and compostable.
– In October 2022, Eco-Straws launched their new line of paper straws which are made from recycled materials.
Some of the prominent players in the paper straw market include:
– Aardvark Straws
– Eco-Straws
– Strawfree
– 888 Straws
– Eco-Gecko
– Paper Straws UK
– Eco-Products
– The Crazy Straw Company
– Plastic Free Solutions
– PappStraw
Global Paper Straw Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global paper straws products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Paper Straws
– Paper Straw-Based Products
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Paper Straw Products?
[A]: The growing demand for eco-friendly products is a major driver of the paper straw products market. Paper straws are 100% compostable and biodegradable, and they have become increasingly popular among consumers looking to reduce their plastic waste. Paper straws are also softer and easier to drink from than plastic straws, making them a preferred option.
[Q]: Who are the Key Players in the Paper Straw Products Market?
[A]: Some of the key players in the paper straw products market are Aardvark Straws, Eco-Products, Inc., Huhtamaki Oyj, Jumbo Straws, Klean Kanteen, Inc., Nature Straws, Pappco Greenware, and Vegware Ltd.
[Q]: Which Region Offers the Largest Opportunity for Sales of Paper Straw Products?
[A]: North America is expected to be the largest market for paper straw products due to the presence of major players and the increasing awareness of green and sustainable products.
[Q]: What are the factors driving the paper straw products market?
[A]: Growing awareness about environmental issues, increasing demand for eco-friendly products, government initiatives to reduce plastic waste, and the rising demand for convenience products are some of the factors driving the paper straw products market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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