Foodservice Disposables Demand to Reach $17.7 Billion

US demand for foodservice disposables is projected to advance 3.5 percent per year to $17.7 billion in 2013.  Growth will decelerate from the performance of the past decade, but will reflect a recovery from the recent weakness in the US economy.  In addition, value advances will be tempered by more moderate price increases for raw materials following sharp spikes, primarily due to resin pricing volatility and high energy and transportation costs, in the 2003-2008 period.  Despite these factors, demand for disposables will be supported by continued growth in the share of away-from-home food expenditures as the economy recovers, along with faster-paced lifestyles and the willingness of consumers to pay for convenient, ready prepared foods. These and other trends, including market share and product segmentation, are presented in Foodservice Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The fastest gains are anticipated for packaging products, which are forecast to increase at a 4.2 percent annual pace to $8.2 billion in 2013.  Advances will be fueled by above-average revenue growth in the large limited service segment, which accounts for nearly half of overall restaurant revenues but generates a much higher share of foodservice disposables demand.  The fastest growth is expected for wraps and lids, with most container types also expected to register healthy gains.

Demand for serviceware, including cups, dinnerware, utensils and other products, is forecast to increase 3.2 percent annually to $8 billion in 2013.   Packaging and serviceware made from biodegradable materials will post robust advances from a low base, the result of increased price competitiveness with petroleum-based plastic materials, rapidly expanding capacity, increased pressure on foodservice operators to reduce their environmental footprint and growing bans on polystyrene-based disposables. 

Disposables demand in eating and drinking places, which generated 66 percent of the total in 2008, is expected to log growth in line with the overall average.  Advances will be driven by expanding menu options in quick service restaurants and increased requirements for disposables among full service restaurants.  Retail and vending will represent the fastest growing disposables market.  Gains will be propelled by the growing presence of prepared foods in supermarkets, warehouse clubs, convenience stores and other retail stores.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.