Drinking Straw Market

SKU: DMFB2256 | Last Updated On: Jul 27 2022 | Available Formats

> Drinking Straw Market Expected to reach at a high CAGR By 2029: DataM Intelligence

Drinking Straw Market is segmented By Product Type (Plastic Drinking Straw, Paper Drinking Straw), By Application (Foodservice, Institutional, Households), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Drinking Straw Market Size Growth Drivers Insights

Drinking Straw Market growth is driven by the thriving food and beverage industries. The market is witnessing a high increase in international and local restaurants, hotels, and café chains, increasing the demand for drinking straws. A drinking straw is a small cylindrical hollow tube that allows the consumption of a beverage by carrying its contents from one end to the other. It can be made up of paper, bamboo, stainless steel, plastics, or others. Drinking straws are commonly used in cafes, quick service restaurants, lounges, roadside eateries, and residential houses and apartments.

The Global Drinking Straw Market is expected to grow at a high CAGR of 5.5% during the forecasting period (2022-2029).

Recovering food and beverages industry

The revival of the various industries on which the drinking straws market depends on in going to drive the market in the forecast period. According to IMF Jan 2021 report, the global economy is expected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage points from the previous forecast, owing to the vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies. For instance, the announcement of ‘Atmanirbhar’ economic policies by the Indian government is going to support the recovery of various industries.

The restaurant and food outlets are also recovering steadily from the crisis as people are getting vaccinated and the visits to these places are rising. For instance, according to  NY Times reports that 46% of Americans have had their first dose and 34.8% are fully vaccinated, thus the restaurant industry is seeing ‘somewhat of an uptick once again.

Environment-friendly products

Growing concerns regarding plastic usage increase the demand for eco-friendly, natural & organic, and reusable straws. Several companies are developing environment-friendly, biodegradable, and renewable products with innovation. For instance, in September 2019, Ahlstrom-Munksjö launched a new innovative U-shaped drinking straw, i.e., celluStraw, a fiber-based solution made of renewable materials. It is an industry’s emerging initiative to phase, ae-use plastic straws. It comprises the specialty paper grades developed for the inner and outer plies of paper straws. It has high wet-strength and mechanical resistance, ensuring that the paper straws remain in excellent condition and withstand liquids for a sufficient ti, ensuring the availability of alternative materials such as metal, glass, bamboo, and silicone for producing the drinking straw is hindering the market growth.

The use of plastic straws is impacting the environment, birds, and animals. Around 437 million to 8.3 billion plastic straws are lying on the world's coastlines.

Drinking Straw Market Scope:

Metrics

Details

Market CAGR

5.5%

Segments Covered

By Product Type, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Covid-19 Impact Analysis

The drinking straw market has been significantly affected by the pandemic. Lockdowns in most countries around the world have affected the supply chain and demand. The growth of this market depends highly on the travel and hospitality sector which has taken a hit during the pandemic. According to IMF 2020 report, by May 2020, flight departures had fallen by about 80 percent from a year ago, restaurant bookings by more than 90 percent, and hotel bookings by more than 70 percent.

Segment Analysis

The global drinking straw market is segmented into types such as plastic drinking straws and paper drinking straws. A paper-drinking straw is expected to have high market growth due to the rising demand for a paper drinking straw owing to its environment-friendly nature and the ban on single-use plastic products around the world. Even the packaging industry is observing a shift towards non-plastic sustainable materials from plastic products.

Paper straws are becoming increasingly popular with consumers. They are hygienic, firm, and once discarded, degrade quickly. They feel more natural to the touch, and, in the eyes of the consumers, thus they witness increasing demand. 

Plastic straws are made from petroleum by-products and their manufacturing process causes pollution whereas the consumption of paper straws is ocean-friendly and reduces the negative impact on the planet. The former breaks down into small pieces called microplastics and enters the food chain. Using paper straws prevents plastic from entering the food chain.

On world environment day (June 5) of 2021, Nestle Pakistan announced the launch of paper straws across its entire 180-250ml ready-to-drink packs. It is the first food and beverage company to do so.

The plastic drinking straw segment is expected to have negative market growth over the forecasted period due to the plastic straws. Corporations, moralities, and governments are imposing bans on plastic straws banning2018, McDonald’s has planned to ban plastic straws at its United Kingdom and Ireland restaurants. These plastic straws are cheaper in comparison to paper straws. Few of the market players like Hyatt, Starbucks, and American Airlines have announced no further usage of plastic straws. Starbucks announced that they would replace the straws with recyclable plastic straws for every single cold drink. Straws produced using different materials, similar to paper and compostable plastic will also be used. the initiative of manufacturing paper straws to replace plastic straws.

Geographical Analysis

By region, the global drinking straw market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominates the market due to increasing food services by restaurants, fast food outlets, among all of the region's users, some cafeterias, other places, and institutional food service facilities, colleges, and healthcare institutes. According to the latest report by USDA (US Department of Agriculture), food service and retailing supplied about $1.77 trillion in 2019, and of this 969.4 billion was supplied by food serving facilities.

There is a high demand for straws in the United States and Canada. Around 500 million straws are used every single day in the United States.  With the rise in environmental concerns about plastic- use, and bans imposed by governments, the region is expected to witness growth in the usage of paper straws in the forecast period (2021-2028). New companies are being created in the region to bring alternatives to plastic straws which are affordable and hygienic. For instance, US Paper Straw was founded in 2017, with the same objective.

 In October 2020, the Canadian government announced the ban on single-plastic products, including plastic straws, and the regulations will be finalized by the end of 2021. In the same year, Lassonde, a Canadian Agri-food company launched paper straws and was the first food company to do so.

Competitive Analysis

The global drinking straw market is highly consolidated with several local and international players. R&M Plastic Products, Aardvark, B&B Straw Pack, Nippon Straw, The Paper Straw, Tawfikiya Plastic, Southeastern Liquid Analysers, and Stone Straw. Companies work on strategic developments such as new product launches, market expansion, technology advancement, and product differentiation to gain market share and act as barriers to new entrants.

New companies are also entering the market to meet the demand for eco-friendly high-quality paper straws. For instance, in 2019, Black System company was created in Europe to manufacture high-quality paper straws. It is one of the first companies to produce in Europe. It is gradually opening up factories all over Europe: Slovakia, Serbia, France, Germany, Austria, Bulgaria, and Spain.

Companies are also launching new products to meet the growing diverse demand of people. For instance, in 2020 Black System launched BIO LIG, a straw friendly to nature and specially formulated for the hospital environment. The straws are heat resistant up to 70°C and can be folded like plastic straws allowing the patients to drink.

The companies are entering into collab, producers, strategic partnerships, and acquisitions to increase the demand for drinking Straw and expansion. For instance, in 2018, Hoffmaster Group, a leading U.S. manufacturer of disposable tableware, announced the acquisition of Aardvark Straws, the only U.S. producer of paper straws. the acquisition will help Aardvark with the required resources to meet the demand for viable plastic alternatives.

For instance, In December 2019, Ahlstrom-Munksjö acquired converting operations in China and the United States from Shunde Lucas and Altior Industries. Through this acquisition, Ahlstrom-Munksjö would have local filter converting capacity in China and a foothold for expanding sales of other products within the Advanced Liquid Technologies business.

Companies are also raising investments to increase their expansion, customer reach, and market penetration. For instance, in December 2019, Ahlstrom-Munksjö issued EUR 100 million in capital securities that would be used for general corporate purposes and refinancing to increase financial flexibility and support the company’s ongoing strategic initiatives.

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