Paper Straw Market

• Growing demand for eco-friendly straws to boost the market growth

Brand owners are going toward offering consumers eco-friendly packaging products and cutlery as a result of realizing the obligations related to their business. Manufacturers, brand owners, and retailers provide reusable, recyclable, or biodegradable packaging solutions. For instance, in 2021, Sun-Rype Products, a division of A. Lassonde Inc., a Canadian manufacturer of fruit-based food & beverages, announced that they had replaced all plastic straws on all SunRype 200ml single-serve beverage boxes in Canada with a recyclable, bendable paper straw. SunRype's 200ml 100% juice and 200ml 60% less sugar juice products fall under this category.

Consumers' increased awareness of climate change, the focus on reducing plastic use, and severe government rules and mandates to reduce plastic waste are key factors anticipated to drive the market potential for eco-friendly straws. For instance, in 2019, the Rwanda Environment Management Authority (Rema) passed a regulation prohibiting the use, manufacturing, import, and sale of single-use plastic products to ensure environmental safety and reduce plastic waste to protect the environment.

Additionally, the startup has been working with tribal people in India's northeast to manufacture bamboo cutlery, packaging, and straws. For instance, in January 2022, Bambrew raised nearly US$ 2.35 million in its pre-Series A funding round. The startup would be looking to expand its supply capacity with this funding. Furthermore, Bambrew will invest in R&D and strive to grow its workforce, which has enhanced the paper straw market CAGR across the globe in recent years.

The market has expanded more quickly due to the prohibition of plastic straws in many countries. It is anticipated that consumer demand for long-lasting and environmentally friendly alternatives to plastic straws will increase throughout the forecast period. For instance, in October 2021, Nestlé Brazil announced using 100% paper straw for its Nescau, Nesquik, Ninho, and Farinha Láctea brands in Colombia. The company destroyed 10 million plastic straws and wrappers.

Additionally, teams eliminated using 70 million plastic straws in Malaysia and Indonesia, preventing the consumption of 1,700 tonnes of plastic in the process, another factor driving the growth of the paper straw market revenue.

The Global Global Paper Straw Market Industry is poised for substantial growth, with projections indicating a market size of 1.54 USD Billion in 2024 and a remarkable increase to 5.6 USD Billion by 2035. The compound annual growth rate is expected to be 12.45% from 2025 to 2035, reflecting the industry's response to evolving consumer preferences and regulatory pressures. This growth trajectory suggests a robust market environment, driven by factors such as environmental awareness, regulatory support, and innovation in product development. The industry appears well-positioned to capitalize on these trends, indicating a promising future for paper straws globally.

The Global Global Paper Straw Market Industry is experiencing a surge in demand driven by increasing environmental awareness among consumers and businesses. As sustainability becomes a priority, many companies are shifting away from plastic straws, which are often associated with pollution and environmental degradation. This shift is evident in various sectors, including food and beverage, where establishments are opting for paper straws as a more eco-friendly alternative. The market is projected to reach 1.54 USD Billion in 2024, indicating a robust growth trajectory as consumers increasingly prefer products that align with their values regarding sustainability.

Technological advancements in the production of paper straws are enhancing their quality and usability, thereby propelling the Global Global Paper Straw Market Industry forward. Innovations such as improved water resistance and durability are making paper straws more appealing to consumers and businesses alike. Manufacturers are investing in research and development to create straws that maintain structural integrity in various beverages, which is crucial for widespread adoption. This focus on innovation is expected to contribute to a compound annual growth rate of 12.45% from 2025 to 2035, reflecting the industry's potential for growth as it adapts to consumer needs.

The food and beverage sector is a primary driver of growth in the Global Global Paper Straw Market Industry. Restaurants, cafes, and bars are increasingly adopting paper straws as part of their commitment to sustainability and customer satisfaction. This trend is particularly pronounced in regions where consumers are more environmentally conscious. The shift is not merely a trend but a strategic move to enhance brand image and meet consumer expectations. As the market evolves, the food and beverage industry is projected to play a pivotal role in expanding the market, contributing to an anticipated market size of 1.54 USD Billion in 2024.

Consumer preferences are shifting towards eco-friendly products, significantly impacting the Global Global Paper Straw Market Industry. As awareness of environmental issues grows, consumers are actively seeking alternatives to plastic straws, favoring products that are biodegradable and sustainable. This change in consumer behavior is prompting manufacturers to align their offerings with these preferences, leading to increased production of paper straws. The market is expected to grow substantially, with forecasts indicating a potential market size of 5.6 USD Billion by 2035. This consumer-driven demand is likely to shape the future of the industry, encouraging continuous innovation and adaptation.

Government regulations aimed at reducing plastic waste are significantly influencing the Global Global Paper Straw Market Industry. Many countries are implementing bans or restrictions on single-use plastics, thereby creating a favorable environment for paper straws. For instance, the European Union has enacted directives to phase out plastic straws, prompting businesses to seek compliant alternatives. This regulatory landscape not only encourages innovation in paper straw production but also expands market opportunities. As a result, the industry is likely to see substantial growth, with projections suggesting a market size of 5.6 USD Billion by 2035, driven by these supportive policies.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Paper Straw market accounted for USD 0.56 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. It is because paper straw is becoming increasingly popular in this area. Due to regulatory restrictions and bans on the use of plastic, the growth of the food and beverage industry, and the large production and consumption of paper straw in this region, the Asia-Pacific region dominates the paper straw market.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: PAPER STRAW MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The North America paper straw market accounts for the second-largest market share. It is a result of the increased use of reusable straws. The rise in producers and suppliers is mostly responsible for market expansion. In the US, more consumer exposure to natural drinks is anticipated to fuel market expansion. As concerns about plastic pollution and government ban spread across the nation, the use of reusable straws is expected to increase. New companies are starting in the US to offer affordable and sanitary alternatives to plastic straws.

Further, the US paper straw market held the largest market share, and the Canada paper straw market was the fastest-growing market in the North America region.

The Europe paper straw Market is expected to grow at the fastest CAGR from 2024 to 2030. The rise of the industry in Europe is linked to an increase in demand for paper-based straw in countries like the United Kingdom and Germany. It is mostly due to the growing use of these straws in the food service industry. Moreover, the regional business is anticipated to grow due to the strong impact of governmental and environmental laws and changes in European countries that prohibit plastics.

Moreover, the Germany paper straw market held the largest market share, and the UK paper straw market was the fastest-growing market in the European region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the paper straw industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the paper straw industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the paper straw industry has provided straws with some of the most significant benefits. The paper straw market major player such as Huhtamäki Oyj, Hoffmaster Group Inc., Biopac Ltd, ECOPRO2, The Paper Straw Co., and others are working on expanding the market demand by investing in research and development activities.

Huhtamäki Oyj (also known as Huhtamaki) is a Finnish consumer packaging company that manufactures food packaging, disposable containers, egg cartons, and fruit packaging for quick-service restaurants, coffee shops, retail stores, caterers, and vending operators. Its headquarters are in Espoo, Finland, and it operates globally. In terms of revenue, Huhtamaki was Finland's 22nd-largest company. Huhtamaki was established as a confectionery manufacturer, but over time it evolved into an industrial conglomerate and became a major player in consumer packaging. In May 2019, Huhtamaki Oyj opened a plant to produce paper straw in Northern Ireland. The facility is situated in Antrim, near Belfast.

It is anticipated that this development will increase the company's range of paper-based products.

The late B.T. Hoffmaster founded the Hoffmaster Group Inc. in February 1947 to manufacture products made of paper napkins. Initially, the company was situated on the second floor of a warehouse in Oshkosh, Wisconsin. The firm employed four workers with one standard machine for producing printed paper napkins. By providing restaurants with placemats, matched dinner and cocktail napkins, and a complete printed ensemble, the company improved its reputation and market share. The introduction of disposable tablecloths in decorator color was another development during this period.

In May 2019, The Paper Straw Co (UK), a company that manufactures paper straw in the United Kingdom, was acquired by Hoffmaster Group, Inc. (USA). The company aims to expand its activities in the European market for paper straw products through this strategic acquisition and expand its product line.