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.