Rise in the Nourishment and Drink Utilization Among the Population Across the Globe is One of the Major Factors Driving Growth of Compostable Straws Market | Future Market Insights Inc.
The global compostable straws market is anticipated to accumulate a market value of US$ 1,670 million in 2023 and is expected to garner a valuation of US$ 3,250 million by exhibiting a CAGR of 6.8% in the forecast period 2023 to 2033. The market of temperature-controlled packaging boxes market reflected growth with a 5% CAGR in the historical period 2018 to 2022.
Rise in the nourishment and drink utilization among the population across the globe is one of the major factors driving growth of compostable straws market. The increasing number of carbon-conscious consumers and wide use of straws, like glass straws in bars, restaurants, and homes, due to their various features such as recyclability, elegance, and stylish aesthetic are expected to drive the market growth.
Availability of various alternative options when materials are taken into consideration, and the growing transition of many prominent brands towards bio-degradable straws as part of their commitment toward environmental sustainability is further expected to fuel market growth. Also, the growing population, consumer inclination toward adopting eco-friendly neighborly items rather than plastic, and increasing awareness among people are propelling the product demand. Furthermore, product improvement will also extend lucrative opportunities to the market players during the forecast period.
Restaurants, cafes, and bars are adopting the use of biodegradable straws as it provides an elegant touch to the dining experience. These straws are made from biodegradable materials like wood, silicone, metal, paper, bamboo, and glass. Straw manufacturers are working on innovations to attract more customers by launching new designs such as polka dots, star-shaped, striped, and others.
Aesthetically pleasing single-use consumables have always been the focus of consumers. Therefore, eco-friendly straw makers offer printed paper straws with attractive designs to increase consumer attention in the market. Paper straws made of three or four layers of paper and many additives around the mold offer more durability than conventional paper straws. As a result, these straws can meet the market demand for stable and sustainable substitutes to plastic straws which will provide significant traction to the product demand in the coming years.
The rising consumption of beverages in catering sections requires a massive stock of eco-friendly straws to meet the demand. Besides, the hospitality and catering sector had to close off their business due to the outbreak of COVID-19, which hampered the growth of bioplastic and paper straw market. Post-COVID, the demand is anticipated to rise as consumers will resume visiting cafes, bars, and other commercial sectors.
Environment-friendly straws like bamboo straws, compostable straws, and glass & metal straws are replacing plastic straws, as the latter creates a huge amount of plastic waste. Europe has implemented a complete ban on the use of single-use plastic which will boost product demand even more. Strict regulations on plastic use by other countries will further assist the market growth. Surging demand for eco-friendly products and rising public awareness are expected to augment market growth during the forecast period.
Region-wise, Asia Pacific is expected to dominate the market by accumulating over 40% market share by end of the forecast period. The flourishing hospital sector in the region is expected to fuel the growth of the market during the projection period. The hospitality industry is a substantial end-user of paper straws, and the increasing number of grocery stores has significantly boosted the demand for paper straws.
In the food and beverage sector, consumer behavior has changed substantially. Moreover, increasing online grocery delivery platforms in emerging markets like India offer a return on investment of over 40%. This fuels competition for food delivery platforms among food service companies that provide lucrative growth opportunities for disposable food packaging such as paper straws. North America is expected to witness the fastest CAGR growth of 6.6% because of the rising consumer propensity toward reusable and recyclable products in the region.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing compostable straws are expected to create lucrative opportunities for market growth during the forecast period.
In July 2022, Lamipak, one of the industry leaders in aseptic packaging products and solutions, announced the launch of its U-shape paper straw solutions for the Indian market. Lamipak presently has its U-shape paper straw production line based in China, with plans to expand its capacity in Indonesia. When fully ramped up, both paper straw lines will have a combined total of more than 200 million paper straws per month, with an additional 100 million straws per month added in 2023.
In April 2022: UFlex Limited, a flexible packaging material solution and polymer science company, launched its initiative to bring a sustainable change to its fold by establishing India’s first U-shaped paper straw production line for its aseptic liquid packaging business. This production line was being set up at its existing aseptic liquid packaging plant in Sanand, Gujarat.
The compostable straws is witnessing a notable demand from various industries because of the initiative taken to minimize the usage of plastic products. In last few years, beverages industry experienced exponential growth and fast development due to increase in the restaurants, cafes, hotels, food outlets and catering services.
This led to a sudden increase in the demand of compostable straws worldwide. Technological advancements led to a need of online delivery platforms which become an additive advantage to increase in the demand of compostable straws market. Additionally, to bring sustainability government has set eco-friendly rules across all the countries of the world.
Due to all these factors compostable straws will gain growing market demand globally in the coming future.
Compostable Straws Market: Market Dynamics
Growth in demand for compostable straws is expected to grow strongly for several reasons. Due to the non-biodegradability property of plastics has become a major factor behind the growth of compostable straws market demand. To minimize the soil and water pollution government has taken stringent steps against the use of plastic.
This has impacted positively on the rise of compostable straws demand. Furthermore, increasing consumer’s awareness towards the negative environmental impacts of plastic products is to be expected to propel the market demand growth of compostable straws in the forecasted period.
There are few factors which affect negatively on the demand of compostable straws. Compostable straws also require industrial composting requirements, which means that the consumers as well as manufacturer must have access to commercial compost facility, which are available only in certain parts of the world. Some compostable straws like glass also require specific temperature for them to be broken down if they have to be recycled and reused.
Additionally, like any other industry packaging industry also witnessed the negative impacts during COVID-19 pandemic. The compostable straws market has also impacted negatively as beverage industry has suffered during the pandemic. However, overall the global compostable straws market is estimated to expand with remarkable CAGR during the forecast period.
Compostable Straws Market: Regional Outlook
In the East and South Asia region, due to the rise in restrictions and ban on the usage of plastic by the governments across all the countries, will propel the compostable straws market growth. Among East Asian countries, China has become the dominant market, considering major consumption of compostable straws and out of East Asian countries compostable straws will witness a remarkable market growth of compostable straws due to the fast expansion of the food & beverage sector.
North America is a notable shareholder of a compostable straws market. Canada has become the first North American country to fully prohibit single-use plastic products. The European government’s initiative to ban plastic straws has started to spread at a faster rate all over the Europe.
Developing regions such as Latin America and the Middle East and Africa is going to be the next demanding market for compostable straws in the forecasted period.
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