Foodservice Disposables Demand to Approach $19 Billion in 2015

US demand for foodservice disposables is expected to increase 4.1 percent per year to $18.8 billion in 2015.  Growth will be driven by accelerating foodservice revenue increases resulting from a rebound in the broader US economy, which will stimulate increased frequency of dining out, thereby creating opportunities for disposables.  Demographic trends, such as high numbers of households where all adults work, growth in empty nest households, and the relatively small average US household size, will tend to favor higher spending for meals eaten or prepared away from home.  These and other trends, including market share and product segmentation, are presented in Foodservice Disposables, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Packaging products will achieve the fastest gains, with demand expected to climb at a 4.5 percent annual pace to $8.8 billion in 2015.  Advances will be driven by a healthy outlook for the large limited service segment, which accounts for half of overall restaurant revenues but generates a much higher share of foodservice disposables demand. 

Demand for serviceware, including cups, dinnerware, utensils and other products, is projected to increase 4.0 percent per year to $8.6 billion in 2015.  Gains will be supported by above-average growth for limited service restaurant and retail establishment revenues, and steady demand in institutional and other markets.  Other factors providing momentum will be the increased focus on gourmet coffee and specialty cold drinks by quick service restaurants and convenience stores. 

Eating and drinking places generated 66 percent of foodservice disposables demand in 2010.  Advances will be helped by above-average revenue growth for limited service restaurants, which rely heavily on disposables and hold strong appeal to price-sensitive and deal-oriented consumers.  Through 2015, retail and vending will represent the fastest-growing market for disposables.  Gains will be fueled by greater requirements for disposables due to the increased focus on prepared foods in supermarkets, warehouse clubs, convenience stores and other retail stores.  Upgraded coffee and the increased availability of fresh salads and sandwiches in convenience stores will also assist disposables demand in the retail market. 

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.