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

India Paper Cups Market Overview

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.

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India Paper Cups Market Trends

Shift in Customer Preference Towards Eco-Friendly Products

One major trend of India paper cups market in that customers in the country now increasingly prefer biodegradable or compostable paper cups which are made of bamboo or PLA (a plant-based plastic). India generates around 26,000 tonnes of plastic waste daily, which has encouraged the end-use sectors such as Fast-Moving Consumer Goods (FMCG) and electronics to adopt sustainable packaging such as paper cups.

A Neilson report stated that around 73 per cent of Indian consumers are willing to pay more price for products from sustainable brands, indicating a shift in the consumer preference towards environmental health in the domestic market. Additionally, BabaCups is one of the major providers of biodegradable and recyclable paper cups from responsibly sourced papers, which contributes to the overall sustainability trend in the Indian packaging sector.

Rise of Takeaways and Online Food Delivery Services

The rise of online food deliveries, especially in the beverages sector, has fuelled the demand for paper cups. Platforms such as Zomato and Swiggy have gained unprecedented growth in the country in recent years due to the expansion of food chains, restaurants, and coffee shops as well as the rising convenience of eating from home. Zomato accounted for around 55% of the total food delivery market share whereas Swiggy occupied around 45%.

As per the India paper cups industry analysis, in March 2023, Zomato consisted of around 30 million monthly active users whereas Swiggy had around 24 million, which indicates a lucrative landscape for the delivery of cold and hot beverages such as coffee, tea, juice, among others, eventually boosting the paper cups growth.

India Paper Cups Market Analysis

Favourable Government Initiatives Promoting Paper Cups

The central government placed a ban on the use of single-use plastics in 2022, due to the environmental harm done by plastics.  The Government of India has thus encouraged the use of paper cups since they are biodegradable, recyclable and appear to take less time to decompose than plastic or foam cups, fuelling the paper cups market value in India.

The Swachh Bharat Mission also encourages waste reduction and sustainability, hereby promoting the adoption of biodegradable and recyclable products such as paper cups which reduce the overall environmental impact. Furthermore, the government offers incentives for end-use sectors offering eco-friendly products such as paper cups. These incentives can include tax benefits to the companies incorporating sustainable production practices as well as subsidies on loans for green manufacturing units.

India Paper Cups Market Growth Factors

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 growth further.

The Burgeoning Popularity of Customisation

Several businesses are offering custom-printed paper cups with their logos, symbols, and brand colours as a part of their marketing initiative. These custom designs enhance brand visibility, especially for small-scale or local businesses that aim to enhance their market penetration and boost the growth of the India paper cups industry.

Major brands such as McDonald’s and Starbucks also readily implement custom paper cups as part of their marketing strategies. For instance, almost all of McDonald’s packaging, including customised cups, is made up of recycled or sustainable fibre. Starbucks, on the other hand, has also set a target of 100% compostable, recyclable, and reusable cups, which are derived from 50% recycled materials. This global initiative by the company is expected to significantly impact the India paper cups market in the coming years as well.

Market News

July 2022

Indic Initiatives was launched in July 2022 in India which is a one-of-a-kind wastepaper recycler that can recycle paper cups, label release paper, and tissue paper, among others. This machine can recycle and convert these products into reusable pulp boards.

December 2021

Tea Time Group, one of the biggest tea franchises in India, announced the launch of 100 per cent biodegradable paper cups to reach more customers and promote the growth of planet-friendly and eco-friendly products

Restraining Factors

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 Segmentations

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.

Based on cup type, the India market can be divided into:

• Hot Paper Cups
• Cold Paper Cups

On the basis of wall type, the market can be segmented into the following:

• Single Wall Paper Cups
• Double Wall Paper Cups
• Triple Wall Paper Cups

The cup size can be segmented as follows:

• Small
• Medium 
• Large

It finds application in the following:

• Tea and Coffee
• Chilled Foods and Beverages
• Others

The end-uses in the product include the following:

• Coffee/Tea Shops
• Fast Foods Shops / QSRS
• Offices, Educational Institutes, and Multiplexes
• Supermarket (Food Courts)
• Others

The major regions included in the market are as follows:

• 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.

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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.

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.

Key Industry Players

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 cups demand growth. The company is based in Surat, Gujarat, and offers products for various end-use sectors, specifically for the fast-moving disposable goods sector.

Sri Lakshmi Polypack

This company was established in 2004 and is based in Hyderabad, India. It is known for its wide range of biodegradable and eco-friendly paper cups which are appropriate for both hot and cold beverages and its manufacturing unit can produce around 800,000 cups daily.

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.

Recent Developments

May 2024

The Authority for Advance Rulings (AAR) in West Bengal stated that disposable paper cups contain 5% inner polyethylene (PE) coatings and fall under Tariff item 4823, which attracts a total GST (goods and services tax) of 18%.

October 2023

The state ministry launched the Kerala Biodegradable Paper Products Manufacturers Association (KBPPMA) in India paper cups market which aims to offer Made in Kerala biodegradable paper products such as paper cups, paper plates, and food wrapping paper, among others.