World Foodservice Disposables Demand to Reach $48.6 Billion in 2013

World demand for foodservice disposables is forecast to increase 4.8 percent per year to $48.6 billion in 2013.  While the US will remain the largest user of foodservice disposables by a wide margin, the most rapid increases will continue to occur in China and the world’s other developing regions.  Overall, factors contributing to rising demand will include growth in foodservice revenues and trends toward convenience-oriented food options as a result of fast-paced lifestyles and increasing personal income levels.  In particular, gains will be fueled by advances in the quick service restaurant industry, which will remain the main user of all major types of foodservice disposables.  Products made from biodegradable materials will post robust advances, albeit from a small base, as a result of increased pressure on foodservice operators to reduce their environmental footprint and growing bans on polystyrene-based disposables.  These and other trends are presented in World Foodservice Disposables, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Gains in Asia, Latin America, Eastern Europe and the Africa/Mideast region will outpace the global average.  Some of the best growth rates are expected in China, India and Russia.  Between 2008 and 2013, China is projected to account for more than one-quarter of world value gains in foodservice disposables demand and will surpass Japan to become the second largest market worldwide.  Throughout the developing regions, strong growth will be attributable to not only increases in the number of fast food and coffee chains, but also to the popularity of takeaway from myriad independent restaurants and street vendors.  Advances in North America and Western Europe will be below-average, though still favorable, with market value supported by increasing use of biodegradable and compostable disposables, which tend to be more expensive.

The fastest gains are anticipated for disposable foodservice packaging.  Advances will be fueled by above-average revenue growth in the limited service segment, which only accounts for about one-third of overall restaurant revenues but generates a much higher share of foodservice disposables demand.  Additionally, packaging gains will be supported by the increasing popularity of takeout food from full service restaurants along with expanded prepared food offerings in supermarkets and other retail stores.  Market value growth for serviceware, which includes cups, dinnerware, utensils and other products, is forecast to decelerate due to more moderate raw materials price increases.  Serviceware will continue to account for the majority of foodservice disposables, while eating and drinking places will represent the biggest market by far.

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.