China’s massive foodservice industry drives global disposables growth

By RJ Whitehead

- Last updated on GMT

China’s massive foodservice industry drives global disposables growth

Related tags: North america

Asia-Pacific will outpace overall growth in the global foodservice disposables market, according to Technavio’s latest report on the segment.

Driven by China and India, the Asia-Pacific market is expected to see almost 8% in annualised growth from 2016-2020, compared to a global rate of nearly 6.3%.

Changing consumer demographics and developing economic conditions are the major drivers of the high demand for foodservices, and therefore disposables, in the region, says Technavio’s Sharan Raj, a packaging research analyst. 

China, the world’s biggest foodservice market, with more than 7.5m restaurants, achieved a value worth more than US$550bn by 2014. The average sale value of these restaurants is expected to grow at 8.4% over the next five years. 

Full-service restaurants account for more than 70% of the total foodservice market in China, and are not major users of disposables​,” said Raj. 

However, the fast food segment, which is a significant user of disposables, is the second-largest segment, accounting for more than 25% of the market. Fast food chains are the major user of disposables as these foods are usually preferred by people to eat on-the-go, which makes maximum usage of beverages cups, straws, and paper packs​.”

Growing at a steady rate and witnessing significant demand from the growing restaurant segment, the North American foodservice market was valued at US$21.34bn last year and is expected to reach a size of US$27.47bn in 2020, with annualised growth at 5.18%. 

While in Western Europe, the foodservice industry was valued at US$9.92bn in 2015 and is expected to reach US$12.02bn in 2020 at an annual growth of 3.92%. Britain, France, and Germany are the key contributors to the market in this region. 

Most North American demand is expected to come from the US, where urban growth and rising per-capita income are increasing the affordability of food outside the home. 

Global consumption of packaged beverages amounted to approximately 1.9tr litres in 2013, which was an increase of 3% from 2012. In 2013, more than 1.4tr beverage packs were sold globally, which is an increase of 4% in volume from 2012. Most of these beverages are sold by restaurants, cafes, and fast food chains that serve beverages in disposables​,” said Raj.

However, intense competition among market vendors and stringent government regulations are inhibiting the growth of the market in North America, a pattern that is expected to continue during the forecast period​,” added Sharan.

Related topics: Markets, East Asia, Industry growth, China

Related news

Follow us

Products

View more

Webinars

Food & Beverage Trailblazers

F&B Trailblazers Podcast