The North America drinking straw market valued USD 3,208.44 million in 2020 and it is expected to grow at a CAGR of 5.26% to reach USD XX million by 2028.
Drinking straw is a small cylindrical hollow tube used for consuming a beverage by placing its one end in the mouth and other in the beverage. It can be made up of paper, plastics and many others. Drinking straws are widely used in hotels, cafes, quick service & food chain restaurants, lounges, roadside eateries, in residential houses and apartments
Recently compostable and biodegradable drinking straws are being used due to strict government rules and regulations on the usage of plastic straws. Hence several leading manufacturers are launching paper based and recyclable straws to avoid the pollution through the plastic straws
The market growth is driven by the blooming food and beverage industry with the changing consumers preferences and tastes which has led to the customization of the food and beverage. Market is witnessing the increase in the number of the international and local restaurants, hotels and cafe chains which is increasing the demand of drinking straws
Growing concerns regarding the usage of the environment friendly products are increasing the demand for eco-friendly, natural & organic and reusable straws. Several companies are developing environmentally friendly biodegradable and renewable products with innovation.
Additionally, the availability of alternative materials such as metal, glass, bamboo, and silicone for producing the drinking straw is creating more opportunity for the market growth. Use of the plastic straw is impacting the environment, birds, and animals. Around 437 million to 8.3 billion plastic straws are lying on the world's coastlines.
On the basis of Material, the North America drinking straw market is segmented into plastic, paper, metal, bamboo and others. Among these sectors, paper drinking straw is expected to have the highest growth rate of 56% in the forecast period, due to growing environmental awareness.
Market Dynamics
Drivers
- Rising number of international restaurants and cafe chains
- Increasing Demand For Beverage Industry in North America
- Growing Trend of Environmental Friendly Straw Use
Restraints
- Stringent Regulation Regarding the Usage of Plastic Drinking Straw
- Decreasing Demand of Plastic Straws due to Hazardous Effect on Environment
Growing Trend of Environmental Friendly Straw Use
Food distributors and service providers are looking for environmentally friendly substitutes as more and more end-users and consumers ditch plastic straws.
The main reason for drastic change of consumer behavior regarding plastic straw, is the increasing campaign from environmentalists and growing sense of responsibility towards the environment. This change in behavior has provided opportunities to the new entrepreneurs who innovate new more sustainable types of straws made from natural raw materials and recyclable ingredients. These new substitutes are increasingly seen as the future of the drinking straw market devoid of plastic straws and are the main driving factors at the present market.
For instance, PacknWood distributes paper straws using recyclable and organic materials to coffee shops, Las Vegas casinos and large stadiums like Madison Square Garden and according to its CEO Adam Merran, it is all about the perspective of consumers and at present there is positive perception on paper straws.
Some campaigns and food service providers are promoting reusable straws made up of steel or glass, which are relatively expensive but can be used repeatedly without harming the environment. In this set-up customers clean their straws at home and bring them back each time they dine out, similar to a to-go mug.
In some cities such as San Francisco plastic straw ban is particularly strict which does not even allow compostable plastic. Under new regulation of the city, only non plastic straws will be permitted, which comprises paper, bamboo, metal, wood and fiber-based materials. Such initiatives are increasingly being followed in many cities of North America, creating a favorable business environment for recyclable straws.
Many new start-ups have emerged in recent years in North America to gain the market share of this new trend. For example, Aardvark straws company provides compostable, biodegradable and renewable resource type straws with high durability up to three hours in cold drinks with 200 types of attractive colors.
A number of straws are also promoted as made from biodegradable plastics such as PLA (polylactic acid), chitosan or other non-fossil plastic alternatives.
Region Analysis
Mexico drinking straws market is likely to reach USD 323.99 million in 2028, from its recorded value of USD XX million in 2020, growing with a CAGR of 5.70% during the forecast period.
The all-time popularity of fast-food restaurants, coupled with an increased presence of restaurants offering a comprehensive menu and better experiences for consumers, remained the major reason for the growth of the drinking straws market in the country. Franchising and sub-franchising have become very popular tools for multinational and local players in the country. Foodservice chains, like McDonald’s, are prominent examples of the largest (QSR) restaurant chains in the country. With increasing foodservice chains, the market for drinking straws is expected to grow as they widely use drinking straws in serving soft drinks.
However, key players in the market are focusing on developing biodegradable straws as single-use plastics are being banned in Mexico. In January 2021, Mexico broadened restrictions on single-use containers, forks, straws, and other ubiquitous items.
In December 2019, Tequila brand Jose Cuervo unveiled a biodegradable drinking straw made from upcycled agave fibres as part of a new campaign, called The Agave Project. The straws were created in partnership with scientists at Bio Solutions Mexico and the production team at Mexico-based Penka. Jose Cuervo straws are made with an agave bio-based composite that replaces around a third of the polymers used in traditional straw production. The material decomposes up to 200 times faster than regular plastic.
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