Segmentation By Application (Retail Outlets, Restaurants, Lodging & Hospitality, Institutional, Sports & Recreation and Others); By Raw Material (Plastic, Paper & Paperboard and Aluminum); By Products (Packaging Product, Napkins & Other Disposables and Service Ware) and Distribution Channel (Online & Offline) – Global Demand Analysis & Opportunity Outlook 2028
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By Application
Based on application segment, the global foodservice disposable market is segmented into retail outlets, restaurants, lodging & hospitality, institutional, sports & recreation and others. Among these segments, the restaurant segment held the highest market share of 45.6% in the market, globally, in the year 2019. The increasing number of fast-food chains worldwide along with the growing demand for readymade food items have raised the need amongst the restaurant chains on a global level to utilize foodservice disposable products. The restaurants require every type of disposable foodservice products such as trays, straws, plates, bowls, coffee cups, and others. With most of the restaurants offering take away services, the demand for different types of foodservice disposables has also increased significantly, which in turn is anticipated to drive the growth of the restaurants segment in the global foodservice disposable market. CLICK TO DOWNLOAD SAMPLE REPORT
By Raw Material
The foodservice disposable market is further segmented on the basis of raw materials into plastic, paper & paperboard and aluminum. The plastic segment holds a significant market share in the raw material segment for the global foodservice disposables market, based on the development of disposables products with single-use plastics such as bowls and trays, food containers, cups, and others. The end-user industrial applications such as in restaurants, retail outlets, hospitality & management sectors, and others mostly prefer plastic-based foodservice disposables as they are lightweight and can hold the cooked food and beverages' thermal control. The most used type of plastic raw material is polystyrene. It is required in a minimal amount to manufacture the disposable products. Thus, it lays off a small amount of wastage of energy when burned. The plastic-based foodservice disposables are cost-efficient in the market
By Product
Based on product, the market for foodservice disposable is divided into packaging products, napkins & other disposables, and service ware. On the back of rising online food-delivery service outlets, in recent days, along with the growing number of dining and take-away restaurants, the demand for packaging products such as cutleries, containers, cups, pizza boxes, plates, bowls, and others have increased significantly, thereafter contributing to a significant market share of the packaging products segment in the global foodservice disposables market. On the other hand, the napkin disposables are widely used in commercial and residential kitchens such as in-home to clean, serve, commercial kitchens such as restaurants, fast foodservice outlets, outdoor dining places, and others. On account of the increasing emergence of food delivery applications collaborated with the restaurants, and the rise in food packaging and food delivery services, napkins are provided with the takeaway. The service ware segment is anticipated to grow with a significant CAGR during the forecast period on account of the growing trend for food dining outside, which has also propelled the growth in the requirement of service ware products, such as trays, holders, clamshells, and others. The hospitality industry's growing facilities and workforce have increased the requirement for food service disposable service ware, backed by the need for increasing concerns for hygiene and food safety. Additionally, the foodservice disposable service ware is easy to use, as it does not require cleaning and can be directly disposed of after using once.
By Distribution Channel
The global foodservice disposable market is further segmented by distribution channel into online and offline. Among these segments, the offline food distribution channel segment held the maximum market share and amounted to USD 47,337.3 Million, in the year 2019. The segment is further anticipated to grow at a CAGR of 6.64% over the forecast period.
The foodservice disposable market is segmented by region into North America, Latin America, Europe, Asia Pacific and Middle East & Africa. The foodservice disposable market in North America held the highest share of 35% in 2019 and is estimated to hold this position over the forecast period, backed by the increasing emergence of commercial & residential end-user applications of foodservice disposables such as social gatherings, corporate meetings, retail outlets, and others in the United States and Canada. The market in Europe followed with the second highest share of the market in the 2019. The increasing growth of the QSRs across Europe, coupled with the rising number of conveniences seeking customers, is further expected to drive the market growth in Europe in the coming years.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Growth Indicators
Increasing Preferences for Ready to Eat Food
The global foodservice disposables market has witnessed significant growth on account of the shifting trend of the consumer preferences from homecooked food towards the consumption of ready to eat food. This shifting trend can be attributed to the changing lifestyle of the individuals, along with the tough working schedules, therefore raising the preference for quick food services. The trend among the end-user industries of using disposables to provide food to the consumers results in the growing demand for disposable products such as containers, cups, plates, cutleries, and others. Additionally, on the back of the rising awareness among people for the toxic nature of plastic, the demand for nontoxic foodservice disposables is increasing significantly. Customers are willing to pay extra for good quality disposables on the back of rising concern for health and hygiene, which is leading to a significant rise in the global foodservice disposable market.
Rising Tourism and Hospitality Industry To Augment Market Growth
The market for foodservice disposable is witnessing a significant growth owing to the support from the tourism and hospitality industry. There is a rising demand for food services outlets as it is feasible for customers to order food at their doorsteps during the time of travel. The tourism and hospitality sector in the recent years has also observed a significant demand for traditional food products. These food products are served in a conventional fashion to support the traditional authenticity and aesthetics to the customers. With significant concerns for hygienic food delivery and the need for food delivery aesthetics, there is a rising demand for custom made foodservice disposables amongst the restaurant owners, which is anticipated to drive the market growth. Moreover, the increasing investments observed in the tourism industry is also anticipated to boost the dining and food service outlet industry, and therefore contribute remarkably towards the growth of the global foodservice disposable market in the coming years.
Challenges
High Production Cost Of Using Biodegradable Materials
Biodegradable foodservice disposable products cost higher than those made of plastics as the raw materials are made up of organic raw materials and the sourcing of these raw materials are challenging, thereby raising the price of the end product. Some countries have imposed restrictions on using plastic disposable products resulting in a decline in the sales of these products.
Some of the prominent industry leaders in the global foodservice disposable market are Anchor Packaging, LLC, Dart Container Corporation, Georgia-Pacific, MDS Associates Inc., D&W Fine Pack, H.T. Berry Company, Inc., Biopac India Corporation Ltd., Sysco Corporation, Gold Plast SPA and WinCup. In spite of Covid-19, maintaining strict regulations, the restaurants and outlets are now opening for business building, which is causing the market to grow at a significant rise.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Shifting trend towards consumption of ready to eat food and increasing concern among consumers about plastic-based products are the major factors to drive the market growth.
Ans: The market is anticipated to attain a CAGR of 6.84% over the forecast period, i.e. 2020-2028.
Ans: The major players in the market are Anchor Packaging, LLC, Dart Container Corporation, Georgia-Pacific, MDS Associates Inc., D&W Fine Pack, H.T. Berry Company, Inc., Biopac India Corporation Ltd. (BOM: 532330), Sysco Corporation (NYSE: SYY), Gold Plast SP
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The foodservice disposable market is majorly segmented by application, raw material, products, restaurant type, distribution channel and by region.
Ans: Rising rate of urban population and digitalization are estimated to be significant growth indicators for urban area segment.
Ans: High production cost of recyclable raw materials and regulations imposed by the government in many countries for using green and sustainable products for food packaging are acting as significant challenges in the global foodservice disposable market.
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