US Cups & Lids Industry Worth $10 Billion by 2018 Says a New Research Report at

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Solid gains in the food and beverage packaging market will be driven by favorable consumption trends for various products commonly packaged in cups, such as yogurt, and coffee and tea for single cup brewing systems.

US cup & lid demand to reach $10 billion in 2018
US demand for cups and lids is projected to reach $10.0 billion in 2018, with growth driven by above average gains for food packaging cups and an improved outlook for foodservice revenue growth relative to the 2008-2013 period. In particular, cup and lid demand will be propelled by the important role of beverages in restaurants and stores as revenue generators, along with the growing focus on specialty beverages among foodservice operators as a means of offsetting declining consumption of carbonated soft drinks.

Packaging cups to be fastest growing products
While drinking cups will continue to dominate, the fastest gains are anticipated in the packaging cup segment due to favorable consumption trends in a number of applications, along with advantages of convenience, portability, and portion control. The growing pattern of snacking in place of traditional meals and a widening definition of snack foods will be advantageous for single portion packaging formats such as cups.

Company Profiles
Profiles 35 US industry competitors such as Berry Plastics, Dart Container, Georgia-Pacific, Huhtamaki, International Paper, Reynolds Group & WinCup

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Among drinking cup materials, paper cups will experience the fastest growth, reflecting a shift in the competitive landscape stemming from environmental concerns about foam cups, growing restrictions on polystyrene foam disposables, increasing pressure from environmental groups, and switches from foam to paper cups by McDonald’s and other high volume foodservice providers. Recent and/or planned major expansions in paper cup capacity are being undertaken by key suppliers to meet the expected upswing in US foodservice paper cup demand. In addition, plastic cups will capture some share of hot drink applications as a result of the commercialization of recyclable insulated plastic cups.

Lid demand to outpace cups
Lid demand growth will outpace that of cups, fueled by expanding carryout food and beverage sales from restaurants and retail stores, an increasing percentage of drinking cups utilizing lids, heightened demand for costlier specialty lids, and healthy increases for single serving packaging cups, all of which have some type of lid or flexible lidding. Growth in the level of drinking cups with lids will reflect an increasing volume of beverages purchased for offsite consumption, consumer tendencies to drink beverages on the go (e.g., in cars), and a growing focus on coffee in quick service restaurants, coffee and snack shops, and convenience stores.

Food service to remain dominant market
The foodservice market, which represented 67 percent of demand in 2013, will remain by far the largest cup and lid market. Among trends driving growth for cups and lids are the increased focus on specialty beverage offerings in quick service and other restaurants, the growing presence of innovative fountain drink dispensers that enable custom flavor combinations, and the popularity of menu items that use cups, such as ice cream, frozen yogurt, oatmeal, and fruit cups.

Solid gains in the food and beverage packaging market will be driven by favorable consumption trends for various products commonly packaged in cups, such as yogurt, and coffee and tea for single cup brewing systems. In addition, the growing prominence of snacks as alternatives to meals and rising interest in healthy foods and snack options will support heightened demand in a variety of applications that can be packaged in a small sized format such as a cup.

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Additional Information
This study examines the US market for cups and lids. Product segments covered include drinking cups, packaging cups, food cups, portion cups, other cups, drinking cup lids, flexible lids, and other lids. Markets for these products include foodservice establishments (eating and drinking places, retail stores, institutional establishments, lodging and hospitality sites, sports and recreation facilities, airlines, and other establishments), food and beverage packaging, retail, and other (e.g., medical and dental, nonfood packaging). Packaging cups are defined as small plastic or paper containers (generally holding eight ounces or less) that can be easily held in the hand and typically contain a single serving of product. Food cups encompass disposable cups with shorter walls than drinking cups, and generally in sizes of 12 ounces or less for such applications as holding ice cream, frozen yogurt, side dishes, oatmeal, soup, and chili. Excluded are reusable drinking cups, packaging tubs containing more than one serving, and ice cream cone sleeves.

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