How To Learn North America Drinking Straw Market 2022

Rising Number of International Restaurants and Cafe Chains

Most restaurants in North America have their customers drinking straws with them. The transparent, straight straws are mostly preferred in foodservice restaurants, cafe chains, juice centers, etc. All typical sizes of beverage straws use different sizes of drinking straws, with 7.75 inches wide with wrapped or unwrapped being the most common one. The drinking straws of good quality are built to match all typical sizes of beverages.

In bars, ice cream parlors, concession stands, and fast-food restaurants, different forms of straw may be used. Sales of straws in pubs, lounges, and hotels will benefit greatly, although remarkable development can be seen in the immediate future in restaurants and motels. Cafes, on the other hand, have in the recent past reported average annual growth in straw sales.

Growth in demand in the institutional sector, especially in corporate environments, also appears optimistic. Further, manufacturers can target white spaces for greater returns in the education and healthcare sectors.

Delivery and take-out facilities in restaurants are gradually growing in demand and are key to sustaining the prophets in the current climate. Restaurant bans related to the coronavirus pandemic in certain states are restricting dine-in options. It will continue to improve the revenue and manage this recession by diversifying the offerings to provide pick-up, distribution, curbside pick-ups as well as home delivery options.

Before Covid-19, for millions of Americans, restaurants have also become an indispensable part of everyday personal and professional life; consumers were dining out more often and spending more on restaurant visits than ever before for recreational activities and socializing. This trend has also helped the drinking straw market tremendously and is expected to do the same after the Covid-19 pandemic.

 For example, In 2019, McDonald's was the major restaurant chain in the U.S. and the most valuable quick-service restaurant (QSR) brand globally. With a calculated brand value of about USD 129 billion and annual total sales of more than USD 40 billion. The huge market and business culture of restaurant chains have greatly helped the drinking straw market in this region.

Globally, the foodservice industry reached about USD 3154.54 billion in 2019. And in this context, North America is a leading stable market with an annual growth rate of about 1.5%. In terms of full-service restaurants, the U.S. is the second-largest market globally with a market share of 28%. The high demand for restaurant products along with beverages among the consumers is also driving the drinking straw market in this country. Even if no particular global calculations exist, the US alone consumes approximately 180 billion straws every year. Additionally, cafe chains in North America are also growing gradually by the demand of the working population who regularly visit these places. In the U.S. alone, there are about 150 million daily drinkers.  According to industry insiders, the consumption growth rate of coffee is expected to be in the range of 5-7% in the forecast period. This, in turn, will help in the market expansion of the drinking straw market.

Increasing Demand For Beverage Industry in North America

The food & beverages industry of North America belongs to the larger food sector of USD 1.4 trillion in the U.S., accounting for approximately 5% of gross domestic product. 

The food & beverages industry, in turn, transforms raw farm commodities from more than 2 million farms into consumer food and beverage products marketed and sold through almost 680,000 retail stores and food service outlets, according to the Committee for Economic Development of The Conference Board (CED). The huge demand for beverages in this region also bolsters the market growth of drinking straws as they have become indispensable and readily available in restaurants and cafes throughout the region. Even if straws are not a necessary commodity and can be done without it in any beverage facility, it has become culturally ingrained among American consumers to use a straw. 

Their use in restaurants is also culturally arbitrary as some beverages, such as soft drinks and water from a glass, are frequently served with straws.  Even using a straw for hot coffee, beer, wine, or bottled water would be considered illogical, but due to trends in terms of style of consumption, straws are frequently served with these beverages. 

Additionally, some new packaged beverage products such as milk products, juice, and other drinks, are also designed so that straw is necessary for consumption which increases the use of drinking straws in some cases. 

Similar to the many single-use plastic consumer items, straws have a short application measured in minutes because they are no longer required after the beverage is consumed. Such single-use consumption also increases the sale of drinking straws across the region.

At present, At least 40% of new foods and beverages are formulated with positive health attributes, and many more innovations are on the horizon because new technologies enable improvements in product quality and decrease waste in the food supply chain. Such a trend is expected to increase the demand for straws in the long run.

Additionally, various colorful and attractive shapes of straws with tags such as bio-degradable straws, recyclable straws, or paper straws are used by the beverage industry to attract consumers of various ages. This also drives the market growth in the North American region.

Nowadays, due to environmental awareness and the various ban on the use of most common plastic straws, new types of environmentally friendly straws are introduced to the market by manufacturers, which is expected to increase the attractiveness of drinking straw products in North America.

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