India Paper Cups Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

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India Paper Cups Industry Overview

Paper cups are a type of disposable cup used to hold food and drinks like tea, coffee, soft drinks, and soups. These are covered with a plastic or wax coating that prevents liquids from soaking through or leaking/spilling out of the paper.

As per the Plastic Waste Management Rules of the country, the Extended Producer Responsibility (EPR) states that the manufacturers are responsible for their product management after they become waste, which has led a large number of businesses in the country to move towards paper-based products such as paper cups, which are easier to dispose and recycle compared to plastic-based products.

As per the India paper cups market dynamics and trends, the rise in disposable income of Indian consumers has fuelled the popularity of online food and beverage delivery platforms such as Zomato and Swiggy. From January to November 2023, the Zomato app had total downloads of 47.5 million whereas Swiggy had 36 million. Zomato also witnessed a growth of 29% year-on-year in July 2023, whereas Swiggy witnessed a growth of 11%, which indicated a positive trend for disposable paper cups.

India Paper Cups Market Growth

The growth of the India paper cups market can be attributed to a variety of factors, including increasing disposable incomes, convenience, recyclability, government regulations, and the development of the food services industry. Paper cups are commonly used in India for food and beverages, including tea, coffee, soft drinks, etc.

At present, sanitation and hygiene are the main drivers of the increasing market for disposable paper cups. The growing customer understanding of cleanliness and hygiene has also prompted customers to use disposable paper cups because they are regarded as healthier as compared to their reusable counterparts. Moreover, given the growing environmental damage done by plastic and foam cups, the Indian Government has also introduced policies to promote the use of paper cups, thus, encouraging the India paper cups market further.

Key Trends and Developments

India Paper Cups Market Trends

With growing concerns over plastic pollution and environmental sustainability, there is an increasing shift towards eco-friendly and biodegradable paper cups. Consumers and businesses are opting for paper cups made from recycled or compostable materials, boosting the demand for sustainable alternatives to plastic cups in India.

The growth of cafes, quick-service restaurants (QSRs), and food delivery services is a significant driver for the India paper cups market. As more consumers prefer beverages on the go, paper cups are becoming a preferred choice for serving coffee, tea, juices, and other drinks, contributing to higher sales in the foodservice sector.

India Paper Cups Market Restraints

The cost of raw materials like paperboard and coatings, which are used to create cups, remains high despite rising demand. Paperboard's price volatility, which is mostly caused by imports, raises manufacturing costs and lowers producers' profit margins. Paper cups are difficult to recycle since they are frequently waterproofed by coatings made of plastic or wax. This gives rise to environmental issues, particularly in light of the growing emphasis on sustainability. This problem is made worse by the inadequate infrastructure for recycling. In addition, there is less of a market for paper cups due to the development of substitute materials like metal or glass, biodegradable cups, and reusable cups. Businesses and eco-conscious consumers are gravitating toward these alternatives, which presents a big challenge to the India paper cups market.

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India Paper Cups Industry Segmentation

Market Breakup by Region:

• North Region
• East and Central Region
• West Region
• South Region

India Paper Cups Market Share

By Cup Type Insights

There are two primary types of paper cups, hot and cold. Cold cups generally consist of a waxy coating inside to prevent the paper from becoming damp and from absorbing the liquid and aid the India paper cups demand. Although hot cups are almost the same as cold cups, the only difference is that hot cups are specifically built to withstand the heat which cold cups cannot withstand. These cups experience intense heat during the production process, killing bacteria and sterilising the product.

By Wall Type Insights

Single Wall Paper Cups account for a major paper cups market share in India as they are affordable in nature and their production costs much less energy compared to double and triple Wall Paper cups. These cups find widespread usage in the food and beverages sector for beverages such as tea and coffee. Moreover, these cups are more biodegradable and can contribute greatly to the sustainability initiatives in food services sector.

By Cup Size Insights

Medium cup sizes are gaining prominence in the market as they are suitable for a wide range of beverages such as tea, coffee, and juice, offered by the quick-service restaurants and cafes. These cups usually range between 150 to 350 ml and offer versatile applications for both cold and hot beverages.

By Application Analysis

Tea and Coffee are expected to grow at a CAGR of 3.6% as the consumption of tea is deeply ingrained in the Indian culture. The rapid expansion of roadside tea stalls, coffee shops, and coffee points utilising paper cups for their beverages is also contributing to the segment growth. The rising hygiene concerns and rapid urbanisation are some other prominent factors boosting the India paper cups market revenue.

By End-Use Analysis

As per India paper cups market analysis, coffee/tea shops are expected to depict a CAGR of 3.6% in the forecast period with the proliferation of international and domestic coffee chains such as Starbucks and Café Coffee Day. A large number of local coffee and tea shops are also relying on paper cups for their on-the-go and delivery services.

India Paper Cups Market Regional Insights

South Region India Paper Cups Market Trends

The South region is expected to gain robust growth in the market with a CAGR of 3.5% due to the thriving café culture in the region. The burgeoning popularity of food delivery services in major cities such as Chennai, Bengaluru, and Hyderabad creates lucrative opportunities for increasing the paper cups industry revenue in India.

Furthermore, market players that were involved in the export of paper cups are gradually shifting their focus towards the domestic market. For instance, Leetha Pack Pvt Ltd, based in Kochi, is an international provider of biodegradable paper cups and aims to expand its services in the domestic market.

North Region India Paper Cups Market Drivers

The North Region is also expected to account for a significant market share owing to rapid urbanisation as well as busy lifestyles in urban areas such as NCR. People in this region prefer this product because it helps to save time and energy, does not need premeditation or washing and does not have to be returned because it can be quickly discarded after use, fuelling the demand of India paper cups market.

Furthermore, market players such as Ishwara are producing paper cups, specifically in the Delhi NCR region. These disposable cups are eco-friendly in nature and available in a wide range of colours and sizes depending upon the consumer's demand.

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Competitive Landscape

The report gives a detailed analysis of the following key players in the India paper cups market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Market players are increasingly making efforts to produce biodegradable and recyclable paper cups which can meet the demand from food chains and cafes.

ISHWARA

The company, founded in 1919, is one of the prominent providers of disposable tableware such as paper cups and bowls, among others. The company is making efforts to produce 100% high-quality ITC paper which offers superior quality and durability, making it appropriate for the food and beverage sector.

Surya Disposable Product

Founded in 2016, this company is a large-scale manufacturer of paper disposable cups and aids the India paper ...

Sri Lakshmi Polypack

This company was established in 2004 and is based in Hyderabad, India. It is known for its wide range of biode...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other India paper cups market players are Leetha Group, Arpan FP, Swan International, Ecopack India Paper Cup Pvt. Ltd, Kafka India, Octane Ecowares Private Limited., and Hyper Pack ™ Pvt.Ltd, among others.

Innovative Indian Paper Cups Startups

Major startups are focused on the production of eco-friendly and biodegradable cups, amid the rising efforts by the government to reduce the waste generated by the food services sector. Several companies are leveraging the capabilities of PLA (Polylactic Acid) coatings to make cups more compostable while maintaining their durability and positively impacting the India paper cups demand forecast. Meanwhile, some other startups are equipped with fully automated production facilities to meet the high demand for paper cups from food chains and cafes.

Rachana Kraft

This startup has been gaining recognition for its high-quality paper cups and has received esteemed awards and recognition such as the Business Awards & Summit Award 2019 for its achievements in the paper cup manufacturing sector. The company is expected to gain significant growth in the market through its eco-conscious paper cups.

MrPaperCup

MrPaperCup is emerging as a sustainable paper cup manufacturer which offers its services for both hot and cold beverages. This company has automated its production process to meet the growing demand for paper cups while retaining their quality and durability. Its commitment to the sustainability initiative is expected to make it one of the industry leaders in paper cups in the coming years.