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The cup sleeves market is currently undergoing a remarkable growth trajectory on a global scale. With a revenue of US$ 26,807.6 million in 2022, the market is projected to reach US$ 40,263.2 million by 2031, exhibiting a strong compound annual growth rate (CAGR) of 4.8% during the forecast period of 2023-2031. This upward trend is primarily fueled by several influential factors that are reshaping the beverage packaging landscape.
One of the key drivers of market growth is the transition from traditional glass and ceramic cups to single-use paper cups. This shift is primarily motivated by the improving standards of living, which have led to a greater demand for convenience and on-the-go beverage consumption. The adoption of single-use paper cups has also been propelled by the increasing preference for healthy beverages among consumers worldwide.
Moreover, the surge in takeout orders for both cold and hot beverages has significantly contributed to the expansion of the cup sleeves market. As consumers opt for takeaway options, the need for cup sleeves has risen to prevent burns and provide insulation for these on-the-go beverages. Furthermore, stringent restrictions on the use of plastics, imposed by regulatory bodies and growing environmental consciousness, have further fueled the demand for paper cups and, consequently, cup sleeves as a more sustainable alternative.
As the market continues to evolve, manufacturers are focusing on product innovation and customization to cater to the diverse preferences of consumers. Industry leaders are actively incorporating environmentally friendly practices, such as using Forest Stewardship Council (FSC) certified materials, in cup sleeve production. This eco-friendly approach not only aligns with consumer expectations but also reinforces brand image and sustainability efforts.
Key Dynamics of the Cup sleeves market
Rising Demand for Takeaway Beverages
The growing demand for takeaway beverages, particularly coffee, is a significant driver propelling the cup sleeve market. With changing lifestyles and busier schedules, consumers are increasingly opting for on-the-go options. Takeout orders, including drive-throughs and online delivery services, have witnessed a surge in popularity. Cup sleeves play a vital role in this trend, providing insulation and protection for hot and cold beverages during transportation. The convenience and comfort provided by cup sleeves have made them an essential accessory for takeaway beverages, driving their demand in the market.
Increasing Emphasis on Sustainable Packaging
The global push for sustainability and the rising awareness of environmental concerns have become major drivers of the cup sleeve market. As consumers become more conscious of the impact of single-use plastics, there is a growing preference for eco-friendly alternatives. Cup sleeves made from recyclable and compostable materials, such as paper, have gained prominence as sustainable packaging solutions. Manufacturers and brands are increasingly focusing on using Forest Stewardship Council (FSC) certified materials and adopting environmentally friendly practices in cup sleeve production. The demand for sustainable packaging options, coupled with regulatory restrictions on plastics, is driving the growth of the cup sleeve market as a more sustainable alternative to traditional beverage containers.
Presence of Substitutes/Alternatives Such as Double-Walled Cups
Some manufacturers argue that double-walled cups can effectively keep beverages hotter for a longer duration without the need for a cup sleeve. While cup sleeves offer branding opportunities, double-wall cups provide extra insulation and various special features. These cups can be a more economically viable option than plain cups with sleeves, offering special temperature-controlled behaviors, embossing, spot colors, and other attractive attributes. Double-wall cups are readily available, reasonably priced, and have short lead times for small quantities and short runs.
The cup sleeves market can be segmented based on material type, including Kraft, Foam, and Plastic. In 2022, the Kraft material segment held the highest market share of 87.6%, and it is projected to maintain dominance with a CAGR of 4.9% over the forecast period. The demand for paper cups and disposable cups is expected to rise due to increased cleanliness awareness, especially during post-Covid times. Consumers are opting for sanitary beverages and hygienic drinks, driving the market for cup sleeves made from Kraft material.
The market can be segmented based on capacity, with divisions including 200-235 ml, 380-420 ml, 480-540 ml, 530-570 ml, and 620-680 ml. The 380-420 ml capacity cups segment held the highest market share of 44.6% in 2022 and is expected to continue leading with a CAGR of 5.2% during the forecast period. Medium-sized cups in this range are preferred due to their ease of handling and ideal size.
Manufacturers offer easy-to-handle cups that are sturdy, waterproof, and cut-resistant, allowing users to hold their drinks for a longer period without concerns about leaks. Paper cups, made from renewable resources, are a safe and environmentally friendly option, further driving their popularity.
The cup sleeves market can be segmented based on the distribution channel, including online and offline. In 2022, the offline segment held the highest market share of 65% due to the abundance of retail and direct stores. However, the online segment is expected to dominate the market during the forecast period with a CAGR of 5.2%.
This shift can be attributed to urbanization, ongoing technological advancements, and a significant change in consumer purchasing behavior. Factors such as scheduled or expedited delivery, on-demand or subscription-based services, rising disposable income, and attractive discounts offered by online platforms are driving the growth of the online channel.
End User Analysis:
The global cup sleeves market can be segmented based on end users, including Food Retail Service, Food Delivery, and Others. In 2022, the food retail service segment held the highest market share of 66.4%, and it is expected to remain dominant with a CAGR of 5.1% over the forecast period.
Cup sleeves provide additional temperature insulation for hot coffee and other beverages, making them highly desirable in the food retail service industry. Retailers often use single-wall cups with cup sleeves for both hot and cold takeaway beverages, offering a durable and insulated option for serving unique drinks.
Europe emerged as the dominant region in the cup sleeves market, accounting for a substantial 35% market share in 2022. This regional dominance can be primarily attributed to the thriving travel and hotel industries. European countries attract a large number of tourists, and with the rise in travel activities, the demand for takeaway beverages, including coffee, has witnessed significant growth. Hotels, cafes, and restaurants across Europe have embraced the use of cup sleeves to enhance the customer experience by offering a comfortable grip on hot and cold beverages.
On the other hand, North America secured the second-largest market share of 31.5% in 2022, reflecting the region's strong presence in the cup sleeves market. The North American market is expected to maintain steady growth with a promising CAGR of 5.9% during the forecast period. The key driving factor behind this growth is the increasing consumption of coffee in the region. Coffee has become an integral part of the daily routine for a significant portion of the population, leading to a rise in coffee shops, cafes, and quick-service restaurants. Moreover, North America is home to major market players who actively contribute to the development and innovation of cup sleeve products, further fueling the market growth.
The competition and presence of significant market players in North America have resulted in the introduction of advanced cup sleeve solutions that cater to specific consumer demands. These players have focused on creating high-quality cup sleeves that not only provide insulation and protection but also offer branding opportunities for businesses. With the rising trend of customization and personalization, cup sleeve manufacturers in North America have been quick to adapt and provide tailored solutions to meet the unique needs of businesses in the region.
Furthermore, both Europe and North America have been witnessing an increasing awareness of environmental sustainability and the detrimental effects of single-use plastics. Governments and regulatory bodies have been implementing stricter regulations on the use of disposable plastic items, including cups. This shift has further boosted the demand for paper cups and, consequently, cup sleeves made from eco-friendly materials. The market players in these regions have been proactive in adopting environmentally friendly practices, such as using FSC-certified materials for cup sleeve production, to align with the growing consumer preference for sustainable packaging solutions.
Top Players in the Cup sleeves market
The global cup sleeves market is dominated by six major players: BriteVision, Uchampak, BioPak, Ecopack, LBP Manufacturing, and Java Jacket.
These companies have gained prominence due to their large production volume of cup sleeves and their adoption of various strategies. One notable strategy is their emphasis on using environmentally friendly raw materials, such as Forest Stewardship Council (FSC) certified materials, for cup sleeve production. Additionally, these industry leaders have swiftly embraced customization of cup sleeves to cater to diverse consumer preferences.
List of Key Companies Profiled
By Material Type
By Distribution Channel
By End User
|Market Size Value in 2022||US$ 26,807.6 Million|
|Expected Revenue in 2031||US$ 40,263.2 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Material Type, By Capacity, By Distribution Channel, By End User, By Region|
|Key Companies||BioPak, BriteVision, Ganesha PrintoPack Idustries, ACCUM, Envirochoice, Apprintable, CupSleeves.Co.UK, LBP Manufacturing, Uchampak, JahooPack, Motto Cup, Trident Paper Box Industries, Ecopack, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Cup Sleeves Market was valued at $ 26,807.6 million in 2022.
The Cup Sleeves market has been expected to reach a valuation of $ 40,263.2 million and CAGR of 4.8% during the forecast year.
Presence of substitutes/alternatives like double walled cups is expected to hamper the market growth in the present as well as in the future.
Increasing demand for takeaway coffee and rapid adoption of environmental packaging are the driving factors for the Cup Sleeves Market.
The growing popularity of branding and customization of cup sleeves.
Each time paper cups are produced; million trees are felled. The removal of millions of trees causes irreparable harm to ecosystem, and environmental pollution gets worse. Starbucks and other brands started serving coffee in cup sleeves rather than double cups. Starbucks introduced this in the United States and Canada in 2012, and the cup sleeves have stopped the loss of 21 million pounds of fiber, or more than 188,000 trees. The sleeves are also compostable in commercial settings and can be recycled with cardboard.
COVID-19 has had a negative impact on cup sleeves market. All restaurants and specialty coffee shops/outlets were closed during the pandemic. As more people stayed at home, the amount of hot and cold beverages purchased from stores outside the home significantly decreased. Out-of-home hot and cold beverage consumption dropped significantly.
The Cup Sleeves Market is segmented by Material Type, Capacity, Channel and End User.
In 2022, Europe dominated the cut sleeves market followed by North America due to travelling and staying in hotels. North America is expected to grow with CAGR of 5.9% in upcoming years due to rising coffee consumption and the presence of significant market players in the area.
Key players in the Cup Sleeves market include BioPak, BriteVision, Ganesha PrintoPack Industries, ACCUM, Envirochoice, Apprintable, CupSleeves.Co.UK, LBP Manufacturing, Uchampak, JahooPack, Motto Cup, Trident Paper Box Industries, Ecopack and Other Prominent Players.