The global food service disposable market size is expected to reach USD 79.2 billion by 2028, expanding at a CAGR of 4.9%.
The increasing popularity of Quick-Service Restaurants (QSRs), especially in the developing regions, such as Asia Pacific, owing to hectic work schedules is expected to aid the market growth over the forecast period. The online food delivery application segment is expected to register the highest CAGR over the forecast period, which is propelled by the outbreak of COVID-19 causing a rise in online food delivery across the globe.
In 2020, the online food delivery services sector was valued at over USD 21.3 billion, which is expected to increase rapidly in the future. Disposable products, such as aluminum foil containers, paper cups and paperboard boxes, are largely used in the packaging of online food delivery.
The lockdowns imposed in various regions to limit the spread of the disease played a major role in the exponential growth of the market in 2020. Moreover, increased awareness regarding food delivery platforms during the COVID-19 pandemic is expected to augment the growth of online food delivery platforms in the coming years, which, in turn, is likely to drive the market.
Food service disposable products are also used in fast service restaurants and establishments, such as food trucks, unlike hotels that mainly use reusable cutlery. The rapid shift of consumer preference from restaurants, hotels and cafe to food trucks as a result of rising popularity is expected to benefit the market growth.
Moreover, food trucks offer a variety of cuisines at relatively lower prices than restaurants. They are also increasingly being used as a marketing tool. Restaurants with brick-and-mortar structures are using food trucks to market their unique cuisine as they can easily reach their target customers. Thus, an increasing number of food trucks is expected to favor market growth.
The food service application segment accounted for the highest share in 2020. Fast-food joints, cafes and only-takeaway food service providers are part of this segment. Certain fast-food chains, such as McDonald's, only use disposables even if the customers are dining in, due to cost benefits, which is expected to drive the segment growth. Manufacturers are focusing on introducing sustainable products to meet the changing consumer demands.
For instance, In July 2019, Huhtamaki launched a new compostable Bioware Impresso double-walled hot cup using sustainable 100% PEFC (Programme for the Endorsement of Forest Certification)-certified paperboard with a plant-based coating on the inside.
Food Service Disposable Market Report Highlights
The rigid packaging type segment accounted for the maximum revenue share in 2020 and will expand further at a steady CAGR from 2021 to 2028
Rigid disposables are made of metals, glass and plastic, which is easier to recycle than single-use flexible plastic or aluminum foil products
Moreover, customized rigid packaging made of glass, such as glass bottles for milkshakes, is used to induce a sense of luxury and contribute to the brand value
The bagasse material segment is expected to register a lucrative CAGR over the forecast period
Bagasse is proven to be a sustainable and eco-friendly alternative to the conventional production of paper owing to its less energy consumption and higher quality of paper that is suitable for the production of food service disposables