Soaring Preference for Biodegradable Packaging in Straw Market
Future Market Insights’ new study offers a global industry analysis for last four years and an opportunity assessment for the next 10.
The global straw market’s value is estimated to be $14 billion.
Paper straws will see strong growth in coming years.
Important global trends within last four years in single-use plastic packaging and in particular straws, has resulted in the pursuit of various alternatives. A new report, Straw Market: Soaring Preference for Biodegradable Packaging Remains Influential—Global Industry Analysis 2014-2018 and Opportunity Assessment 2019-2029, tackles key trends and alternatives. Prepared by London-based Future Market Insights, the report finds that sustainable and biodegradable straws are at the top of preferred alternatives being sought. Here are some of the study’s key research findings:
▪ The global straw market size in 2018 – nearly $14 billion.
▪ The straw market is projected to grow to nearly 6% during the next 10 years.
▪ Europe and Asia are expected to remain the leading regions in terms of market value share, accounting for more than half of the global straw share.
▪ Europe is expected to be one of the key regions in terms of replacing single-use plastic straws with other biodegradable straws, which will translate into growth opportunities for the straw market.
▪ East Asia is expected to create high incremental opportunity for the straw market by the end of the forecast period, owing to the growth of the food service industry.
▪ Manufacturers in the straw market are shifting towards providing sustainable products and offering variety of straws to cater to the demand from end-use industries.
▪ Several companies in the straw market, such as Tetra Pak International S.A., are changing their business strategies i.e. from plastic straws to developing paper straws to eliminate single-use plastic.
According to the study, key factors shaping the global straw market is led by the increasing use of beverage packages which boost the straw market growth.
To enhance convenience and ensure hygiene at workplaces, brand owners and corporate entities prefer straws along with tetra packs. Manufacturers directly provide packaged product or packages to beverage companies. Consequently, the demand for packaged beverages will fuel the straw market growth during the coming years.
Due to all single-use plastic bans across the world, manufacturers in the straw market are coming up with sustainable and biodegradable straws.
Key points from the study’s Straw Market Structure Analysis include:
▪ The global straw market is highly fragmented with few tier 1 and 2 players. Key tier 1 players in the straw market include Hoffmaster Group Inc. and Tetra Pak International S.A.
▪ More than 90% of the straw market is held by players having a revenue share of below 1%.
▪ North America and Europe are estimated to account for noticeable consumption of sustainable products during the forecast period.
▪ Bargaining power of suppliers in the East Asian region is comparatively low as compared to other regions, as there are large number of local, as well as medium-sized players in the straw market. Consequently, consumers have a large number of manufactures, offering a variety in straws with different specifications.
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