Paper Straw Market Trend, Share, Growth, Size Analysis and Forecast 2030

Paper Straw Industry Perspective:

The global paper straw market size was evaluated at $11.4 Billion in 2022 and is slated to hit $21.3 Billion by the end of 2030 with a CAGR of nearly 8.7% between 2023 and 2030.

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The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace. The paper straw industry report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the paper straw market report explores the investor and stakeholder space to help companies make data-driven decisions.

Paper Straw Market: Overview

Paper straws are garnering huge popularity owing to the rise in the awareness about sustainability of plastic straws becoming the target of growing government regulations. All across the globe, a large number of countries are making use of paper straws instead of plastic because of the eco-friendly nature of plastic and owing to strict government laws in various nations over banning plastic use to avoid environmental degradation. Food and beverage industry has experienced rapid use of paper straw owing to the rise in catering activities, and the increase in restaurants, hotels, and food stalls providing food to millions of customers across the globe.

Key Insights

• As per the analysis shared by our research analyst, the global paper straw market is projected to expand annually at the annual growth rate of around 8.7% over the forecast timespan (2023-2030)
• In terms of revenue, the global paper straw market size was evaluated at nearly $11.4 billion in 2022 and is expected to reach $21.3 billion by 2030.
• The global paper straw market is anticipated to record massive growth over the forecast period owing to massive customer preference for eco-friendly and bio-based products.
• Based on material, the virgin paper segment is predicted to contribute majorly towards the global market share over the forecast timeline.
• In terms of product, the non-printed segment is projected to account for a major share of the global market in 2023-2030.
• On the basis of application, the foodservice segment is set to register the fastest CAGR over the period from 2023 to 2030.
• Region-wise, the European paper straw market is projected to register the fastest CAGR during the assessment period.

Paper Straw Market: Growth Factors

Escalating demand for bio-based products to bolster the global market expansion over 2023-2030

Growing shift towards bio-based products will spearhead the demand for plastics in the coming years. With a large number of food processing firms and players in the packaging, farming, and textile sectors shifting towards the use of bio-based items, the demand for paper straws is going to gain momentum in the forthcoming years. All these aforementioned factors will steer the growth of the paper straw market in the ensuing years. In July 2021, the EU banned the use of single-use plastic plates, straws, food & beverage containers, and cutlery, thereby creating humungous demand for paper straws.

Furthermore, massive customer preference for eco-friendly products is likely to trigger the global paper straw market demand. Moreover, items made from products are adaptable, alterable, lightweight, robust, and bio-degradable. They can be availed in a slew of colors, types, and sizes based on the consumer needs. All these aspects will provide impetus to product penetration in a spectrum of end-user industries and will chart a profitable roadmap for the global market.

Paper Straw Market: Restraints

Rising raw material costs to deter the expansion of the global industry

Huge costs of paper straws as well as the easy availability of product substitutes at lower prices can create hurdles in the growth path of the global paper straw industry. In addition to this, stringent government laws regarding the deployment of machines for paper straw production can further decimate global paper straw industry expansion.

Paper Straw Market: Opportunities

Increase in purchase of paper straws as the best alternative to plastic products will generate new growth opportunities for the global market

Emergence of new startups and the rise in sales of paper straws will open new growth opportunities for the global paper straw market in the years ahead. Ban on plastic use in commercial packaging has forced firms to look for new alternatives and this is likely to help the players in the global market explore untapped market growth opportunities in the years to come.

Paper Straw Market: Challenges

Fluctuations in government laws due to political uncertainty in emerging economies pose biggest challenge to the global industry expansion

Changes in legislation and policies of government due to political instability & uncertainty witnessed in emerging economies can create big problems for foreign investors as well as foreign firms investing in the emerging economies globally. This has proved to be a key challenge in the growth of the paper straw industry across the globe as sometimes it can display a downward growth trend even for a short span of timeframe.

 Paper Straw Market: Segmentation

The global paper straw market is sectored into material, product, application, and region.   

In terms of material, the global paper straw market is sectored into virgin paper and recycled paper segments. Furthermore, the virgin paper segment, which accounted for more than half of the global market share in 2022, is set to maintain its segmental dominance in the forecasting period. The segmental surge in the next eight years can be credited to a large number of paper straw manufacturers making use of virgin paper as a raw material for manufacturing paper straws. Furthermore, paper straws produced by making use of virgin paper are robust, possess high absorbency rates, and are of high quality.

Based on the product, the paper straw industry across the globe is divided into printed and non-printed segments. The non-printed segment, which contributed for about 45% of the global industry share in 2022, is slated to rule the global industry expansion even in the upcoming years. The growth of the segment in the coming years can be due to the growing inclination of consumers towards the use of non-printed paper straws as these products are produced from food-grade papers.  

On the basis of application, the global paper straw market is divided into foodservice and household segments. Moreover, foodservice segment, which accounted for a major share of the global market in 2022, is anticipated to record the fastest CAGR over the coming years. The segmental surge over the forecast timeline can be owing to the acceptance of paper straws in foodservice segment as the best eco-friendly substitute for single-use plastics.

Recent Breakthroughs:

• In the second half of 2022, SIG India, a division of a Swiss-based firm providing aseptic carton packaging services to its customers, introduced an assortment of renewable paper straws with different shapes and dimensions. Reportedly, the paper straw is predicted to offer the best bio-based non-plastic options to the customers.
• In the first half of 2021, Nestle S.A., launched renewable paper straws for Milo, the chocolate drink. With this initiative, Nestle eliminated nearly 30 million plastic straws. Moreover, the firm declared that it will make use of paper straws in the packaging of its Nescafe cold coffee products in the near future. This is a major shift of any reputed food & beverage firm towards the use of eco-friendly products and is likely to contribute substantially towards the growth of the paper straw business in India as well as add to the profits & business growth of the manufacturers based across the country.

Paper Straw Market: Report Scope

Paper Straw Market: Regional Insights 

European Paper Straw market to register the highest CAGR over the forecast period

Europe, which accounted for more than 65% of the global paper straw market revenue in 2022, is anticipated to record the highest CAGR during the projected timeline. The regional market expansion over 2023-2030 can be due to rising demand for paper straws in Germany, France, Italy, the UK, Holland, Spain, and Finland. In addition to this, strict EU laws banning the use of plastics to reduce environmental degradation and meetings such as the Paris Convention to minimize the greenhouse effect on the environment have led to the acceptance of eco-friendly products by the customers. Apart from this, strict enforcement of government rules mandating firms and people to use eco-friendly products in packaging as well as for daily use has paved the way for the market growth in the continent.

Furthermore, the Asia-Pacific paper straw industry is set to witness massive growth in the forecasting years. The factors that will determine the regional market growth include easy availability of cost-effective labor for manufacturing paper straws, abundant access to raw materials, and favorable climatic conditions for producing paper straws in countries such as China, Japan, Bangladesh, and India.

Paper Straw Market: Competitive Space

The global paper straw market profiles key players such as:

• Footprint
• Lollicup USA Inc.
• Hoffmaster Group Inc.
• Shenzhen Grizzlies Industries Co. LTD
• Soton Daily Necessities Co. Ltd.
• Aleco Industrial Co. Ltd.
• Transcend Packaging Ltd.
• Biopak
• Bygreen
• Canada Brown Eco Products Ltd.
• Focus Technology Co. Ltd.
• Fuling Global Inc.
• Tipi Straws
• Huhtamaki Oyj
• Charta Global
• Ningbo Jiangbei Shenyu Industry and Trade Co. Ltd.
• YuTong Eco-Technology (SuQian) Co. Ltd.

The global paper straw market is segmented as follows:

By Material

• Virgin Paper
• Recycled Paper

By Product

• Printed
• Non-Printed

 By Application

• Foodservice
• Household

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa