North America Food Service Disposable Market Size, Share & Trends Analysis Report By Material (Plastic, Fiber-based), By Packaging Type, By Application, By Distribution Channel, By Country, And Segment Forecasts, 2020 - 2028

Report Overview

The North America food service disposable market size was valued at USD 23.06 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2028. The market is gaining momentum and witnessing a high demand owing to the growing food service industry, increasing penetration of online retail, and growing consumer focus on takeaway due to busier lifestyles. The high penetration of online food delivery services in the region, coupled with the popularity of quick-service restaurants in countries such as the U.S. and Canada owing to the busy lifestyle of consumers, is bolstering the demand for food service disposables in the North American region. An increasing number of quick service restaurants as they can be established in limited spaces is further fueling the regional market growth.

According to the National Restaurant Association, the U.S. restaurant industry sales were valued at USD 659 billion in 2020 and are further projected to witness growth by 2025. According to the National Restaurant Association estimates, there were 194,723 quick-service restaurant franchises in 2019 in the U.S. Therefore, the growing restaurant industry of the U.S. is projected to fuel the regional market growth. Marketing and advertisement activities have also played a crucial role in enhancing the adoption of food service disposable products. Companies are investing in the printing of brand names and promotional content on disposables. Customized printing on the food service disposable products plays a vital role in appealing to the consumers.

The growing sustainability concerns leading to a minimal packaging approach are projected to restrain the growth of the market over the forecast period. The rising environmental concerns associated with the exponential increase in disposable waste across the region are further projected to limit the growth over the forecast period. Additionally, fluctuating raw material price is a major challenge for the growth in the forecast period. In 2020, the industry witnessed a contraction in growth due to the outbreak of COVID-19 and lockdowns imposed, resulting in the restricted movement of people and the shutdown of several food service outlets. The outbreak of COVID-19 is likely to shift the paradigm of the food service industry and consumers are likely to be inclined toward online food delivery services, which is expected to increase the demand for the products that are specifically used for online food deliveries.

Material Insights

The plastic segment led the market and accounted for a revenue share of more than 50.0% in 2020. Plastics have been the most preferred choice of material in the food packaging industry. Their characteristics such as low cost, ease of use, lightness, temperature resistance, and abundant availability have propelled their usage in the food service disposables market. Plastics are used for the manufacturing of various products such as plates, bowls, cups, trays, cutlery, and food containers. The plastics segment of food service disposables market is further bifurcated into polypropylene (PP), polyethylene (PE), expanded polystyrene (EPS), and others.

In the plastic material segment, polypropylene (PP) led the market in 2020. PP is majorly used when heat resistance is needed. PET is another commonly used plastic material in the production of food service disposables. PET provides excellent resistance to heat and chemicals. Moreover, its impermeability to gas, impact resistance, and transparency make it a lucrative material option for food service disposable. The growing trend of the usage of recyclable products has propelled the demand for paper and paperboard-based food service disposables across the region. Paper and paperboard are made from the natural fibers of bleached or unbleached cellulose or from materials that are recovered post recycling. Thus, the paper and paperboard segment is anticipated to witness significant growth over the forecast period.

Packaging Type Insights

The trays and containers segment accounted for the largest revenue share of more than 25.0% in 2020. The trays and containers are commonly made of plastics, paperboard, and metals, such as aluminum. Disposable trays reduce the risk of cross-contamination, hence are witnessing high demand to prevent the spread of coronavirus in North America. The single-use food service disposable trays are used as food serving components for ready meals, especially with the increase in online food delivery services. Disposable bowls are used for the packaging of liquid and semi-liquid food items to prevent spoilage. The majority of the disposable bowls are made of plastic, paper and paperboard, and metals, such as aluminum foil. Disposable bowls made from plastic are popular owing to their easy availability, manufacturing processes, and low cost.

The cups and lids segment is projected to witness significant growth over the forecast period. Cups and lids are offered in various styles, sizes, and colors in various materials such as paper, plastic, and foam. However, consumers in the North American region are consciously accepting and promoting sustainable products such as paper cups due to the availability of various types of cups. The players operating in the North American food service industry are capitalizing on consumer sentiments to provide sustainable packaging solutions and are adopting paper-based cups and lids. Paper cups are widely used in cafes, restaurants, institutional spaces, and commercial spaces to serve tea, coffee, and other beverages.

Application Insights

In 2020, the food service segment accounted for the largest revenue share of more than 45.0% in the North American market. The segment is projected to maintain its lead over the forecast period. The dynamics of the food service segments are changing at a high pace, which is expected to impact the food service disposables market favorably owing to the increasing demand for takeaways and online delivery. The food service segment is further bifurcated into full service, quick service, and others. Restaurants and hotels come under the full-service application. The quick-service segment dominated the food service segment with a revenue share of more than 50.0% in 2020. The segment is also projected to maintain its lead throughout the forecast period.

The popularity of online food delivery is continuing to grow and in recent years, it has witnessed exponential growth owing to the COVID-19 pandemic, which has positively impacted the online food delivery sector. Convenience is one of the important drivers of the increasing popularity of online food delivery. Food service providers are focusing on maximizing consumer experience, wherein food packaging plays the most important role. For instance, unique and sustainable packaging promotes the likelihood of repeat orders. With more and more consumers becoming conscious about disposable, eco-friendly, and sustainable packaging, food service providers are becoming wise about choosing the appropriate disposables for food delivery.

Key Companies & Market Share Insights

The companies are continuously involved in the R&D activities for sustainable packaging solutions owing to the rising concerns associated with the exponential increase in the use of disposables across the food industry. The emergence of coronavirus has boosted the demand for disposables particularly to prevent the spread of coronavirus from the use of reusable packaging solutions. As a result, companies are expanding their reach in the regional market. For instance, in January 2021, a distributor of foodservice disposables and janitorial and sanitation products, BradyIFS has acquired Janitor’s Warehouse, Inc. This strategic acquisition is intended to expand the reach of BradyIFS in the Texas market. Some prominent players in the North America food service disposable market include:

• Graphic Packaging International LLC

• Sonoco Products Company

• Sabert Corp.

• Genpak LLC

• Pactiv LLC

• Interplast Group

• Anchor Packaging Inc.

• Carlisle FoodService Products

• GreenGood USA

• Georgia-Pacific LLC

North America Food Service Disposable Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the North America food service disposable market report on the basis of material, packaging type, application, distribution channel, and country:

• Material Outlook (Revenue, USD Million, 2017 - 2028)

  • Plastic

    • PP

    • PE

    • EPS

    • Others

  • Paper & Paperboard

  • Metal

  • Fiber-based

  • Others

• Packaging Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Platers

  • Cups & Lids

    • PP-based

    • PET-based

    • EPS-based

    • Other material based

  • Trays & Containers

  • Bowls

  • Bags

  • Boxes & Cartons

  • Cutlery

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Food Service

    • Full Service

    • Quick Service

    • Others

  • Online

  • Institutional

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

  • Corporate Distributors

    • Direct Distribution

    • GPO

    • Individual Distributor

  • Individual Distributors

  • GPO

  • Direct Distribution

  • Others (Online and Retail Distribution)

• Country Outlook (Revenue, USD Million, 2017 - 2028)

  • U.S.

  • Canada

  • Mexico