US Cups & Lids Market

• Publication date: August 2012
• Report size: 304 pages

US cup & lid demand to reach $8.9 billion in 2016 US demand for cups and lids is forecast to reach $8.9 billion in 2016, with growth driven by above-average gains for food packaging cups and a favorable outlook for foodservice revenues. In particular, cup and lid demand will be propelled by the growing focus on specialty beverages among foodservice operators as a means of recovering sales lost due to weakness in the carbonated soft...

US cup & lid demand to reach $8.9 billion in 2016

US demand for cups and lids is forecast to reach $8.9 billion in 2016, with growth driven by above-average gains for food packaging cups and a favorable outlook for foodservice revenues. In particular, cup and lid demand will be propelled by the growing focus on specialty beverages among foodservice operators as a means of recovering sales lost due to weakness in the carbonated soft drink market. Many quick service restaurants are placing greater emphasis on premium coffee, specialty coffee drinks, iced coffee, smoothies, and frozen lemonade. These offerings are also popular as a means of boosting customer traffic since they are often purchased as snacks rather than as accompaniments to meals.

Packaging cups to lead gains

Although drinking cups will continue to dominate, the fastest gains are anticipated in the packaging cup segment due to solid product demand outlooks in key packaging cup-using markets such as yogurt, coffee and tea, and fresh fruits and vegetables. Additionally, gains will be driven by expanding uses, where cups satisfy consumer demand for portable, convenient, single-serving packaging. Among drinking cups, plastic cups are expected to log the fastest gains based on performance and customization advantages. Additionally, value gains will reflect slightly faster price increases for plastic cups than for paper cups. Paper, however, will remain the leading drinking cup material in value and unit terms through 2016. Demand for paper cups will be supported by the continued popularity of coffee, particularly premium varieties that are typically sold in paper cups. Increasing efforts by quick service restaurants to introduce higherend coffees will also boost paper cup demand, as will the presence of valueadded insulated cups and cups featuring degradable coatings. Additionally, environmental concerns and controls on polystyrene foam cups will benefit paper cup demand.

Lids to outpace cups

Lid demand growth will outpace that of cups, fueled by an increasing percentage of drinking cups utilizing lids, heightened demand for costlier specialty lids, and healthy increases for single-serving packaging cups, all of which have lids or flexible lidding. The increased level of cups with lids will reflect the rising volume of beverages purchased for offsite consumption, consumer tendencies to drink beverages on the go, and the growing popularity of coffee in quick service restaurants, coffee and snack shops, and convenience stores.

Foodservice to remain dominant market

The foodservice market will remain the dominant cup and lid market. Growth for drinking cups will benefit from the aforementioned tendencies of coffee and beverages to go from consumer food outlets. Trends such as the availability of oatmeal as a quick service breakfast item and the popularity of self-serve frozen yogurt shops bode well for food cup demand. Solid gains in the food and beverage packaging market will be driven by favorable consumption trends for various products commonly packaged in cups, such as yogurt, and coffee and tea for single-cup brewing systems. In addition, new applications and product line extensions utilizing cups will benefit demand. The relative novelty of the cup format in some uses combined with its convenience and portability benefits can help reinvigorate sales of mature products while boosting new sales channels.

Study coverage

This upcoming industry study presents historical demand data (2001, 2006, 2011) plus forecasts for 2016 and 2021 by product and market. The study also considers key market environment factors, evaluates company market share and profiles 39 industry competitors.

Soda Industry in the United States

TABLE OF CONTENTS

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Outlook 5
Demographic & Household Trends 8
Consumer Income & Spending 12
Retail Sales Trends 15
Food Consumption Trends 19
Packaging Overview 23
Raw Material Trends 26
Plastic 27
Polystyrene 28
Polypropylene 30
Polyethylene 31
Other Plastic Resins 31
Paperboard 33
Metal, Foil, & Other 35
Pricing Trends 36
Environmental & Regulatory Issues 41
Recycling 45
Degradable Materials 49
International Activity & Foreign Trade 51

III. PRODUCTS 55

General 55
Cups 57
Drinking Cups 61
Paper Cups 67
Plastic Cups 73
Foam Cups 79
Packaging Cups 84
Materials 86
Producers 88
Portion Cups 90
Food Cups 93
Other Cups 97
Lids 99
Types 102
Drinking Cup Lids 102
Flexible Lids 109
Other Lids 112
Materials 114
Plastic Lids 115
Other Lids 116

IV. MARKETS 119

General 119
Foodservice 122
Foodservice Industry Outlook 123
Cup & Lid Demand 127
Establishments 129
Quick Service Restaurants 130
Coffee & Snack Shops 133
Other Establishments 135
Applications 139
Hot Beverages 141
Soft Drinks 145
Other Applications 148
Food & Beverage Packaging 151
Food & Beverage Manufacturing Outlook 152
Cup & Lid Demand 155
Dairy Products 158
Yogurt 160
Coffee Creamers 165
Pudding 166
Other Dairy Products 168
Specialty Processed Food 171
Fruits & Vegetables 175
Coffee & Tea 178
Dry Food 180
Other 183
Retail & Other 189

V. INDUSTRY STRUCTURE 194

General 194
Market Share 199
Acquisitions & Divestitures 206
Competitive Strategies 210
Research & Development 213
Low-Cost Manufacturing 217
Manufacturing 217
Marketing & Distribution 220
Cooperative Agreements 222
Company Profiles 225
Airlite Plastics Company 226
Amscan Holdings Incorporated 227
Bemis Company Incorporated 229
Berry Plastics Corporation 231
Cascades Incorporated 234
Churchill Container, see Koller Enterprises
Clondalkin Group Holdings BV 235
Constantia Flexibles GmbH 236
Crocker (HS) Company Incorporated 238
Curwood, see Bemis
D&W Fine Pack LLC 239
Dart Container Corporation 240
Dopaco, see Reynolds Group
DuPont (EI) de Nemours 248
Eco-Products Incorporated 250
Fabri-Kal Corporation 251
Genpak, see Pattison (Jim) Group
Georgia-Pacific, see Koch Industries
Grupo Phoenix 254
Heinz (HJ) Company 256
Hoffmaster Group Incorporated 257
Huhtamaki Oyj 258
Inline Plastics Corporation 260
International Paper Company 261
Koch Industries Incorporated 263
Koller Enterprises Incorporated 266
Letica Corporation 267
Master Containers, see Spirit Foodservice
Mullinix Packages Incorporated 268
New WinCup Holdings Incorporated 270
NEX Performance Films Incorporated 272
Norse Dairy Systems, see Weston (George)
Pactiv, see Reynolds Group
Pattison (Jim) Group 274
Polytainers Limited 276
Printpack Incorporated 277
Rexam plc 279
Reynolds Group Holdings Limited 280
Silgan Holdings Incorporated 284
Solo Cup, see Dart Container
Sonoco Products Company 285
Spartech Corporation 287
Spiralkote Flexible Packaging, see Clondalkin Group
Spirit Foodservice Incorporated 290
StyroChem International, see New WinCup
Toray Industries Incorporated 291
Waddington North America Incorporated 292
Weston (George) Limited 294
Whirley Industries Incorporated 296
Wihuri Oy 297
WinCup, see New WinCup
Winpak Portion Packaging, see Wihuri
Other Companies in the Cup & Lid Industry 300

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population & Households 12
3 Personal Consumption Expenditures 15
4 Retail Sales 18
5 Consumer Food & Beverage Indicators 23
6 Packaging Supply & Demand 25
7 Raw Material Demand in Cups & Lids 26
8 Cup & Lid Pricing 40

SECTION III -- PRODUCTS

1 Cup & Lid Demand by Type 57
2 Cup Demand by Type, Material, & Market 60
3 Drinking Cup Demand by Material & Market 65
4 Paper Drinking Cup Demand by Type & Market 70
5 Plastic Drinking Cup Demand by Market 75
6 Foam Drinking Cup Demand by Type & Market 83
7 Packaging Cup Demand by Material 86
8 Portion Cup Demand by Material 93
9 Food Cup Demand by Material 97
10 Other Cup Demand 99
11 Lid Demand by Type & Market 101
12 Drinking Cup Lid Demand by Type 106
13 Flexible Lid Demand by Material 112
14 Other Lid Demand by Material 114
15 Lid Demand by Material 115

SECTION IV -- MARKETS

1 Cup & Lid Demand by Market 121
2 Foodservice Establishments & Revenues 126
3 Foodservice Cup & Lid Demand by Establishment 128
4 Quick Service Restaurant Cup & Lid Demand 132
5 Coffee & Snack Shop Cup & Lid Demand 135
6 Other Foodservice Establishment Cup & Lid Demand 138
7 Foodservice Cup & Lid Demand by Application 140
8 Hot Beverage Cup & Lid Demand by Beverage & Type 145
9 Carbonated Soft Drink Cup & Lid Demand 148
10 Other Foodservice Cup & Lid Demand by Product & Type 151
11 Food & Beverage Shipments 154
12 Food & Beverage Packaging Cup & Lid Demand 157
13 Dairy Product Cup & Lid Demand 159
14 Yogurt Cup & Lid Demand 164
15 Coffee Creamer Cup & Lid Demand 166
16 Pudding Cup & Lid Demand 168
17 Other Dairy Product Cup & Lid Demand by Application
& Type 171
18 Specialty Processed Food Cup & Lid Demand
by Application & Type 175
19 Fruit & Vegetable Cup & Lid Demand by Application & Type 178
20 Coffee & Tea Cup & Lid Demand 180
21 Dry Food Cup & Lid Demand by Application & Type 183
22 Other Food & Beverage Packaging Cup & Lid Demand
by Application & Type 185
23 Retail & Other Cup & Lid Demand by Market & Product 193

SECTION V -- INDUSTRY STRUCTURE

1 US Cup & Lid Sales by Company, 2011 197
2 Selected Acquisitions & Divestitures 209
3 Selected Cooperative Agreements 224

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Raw Material Demand in Cups & Lids, 2011 27
2 Plastic Demand in Cups & Lids, 2011 28
SECTION III -- PRODUCTS
1 Cup Demand by Type, 2011 61
2 Drinking Cup Demand by Material, 2011: by Value
& by Unit 66
3 Lid Demand by Type, 2011 102
SECTION IV -- MARKETS
1 Cup & Lid Demand by Market, 2011 122
2 Foodservice Cup & Lid Demand by Establishment, 2011 129
3 Foodservice Cup & Lid Demand by Application, 2011 141
4 Food & Beverage Packaging Cup & Lid Demand, 2011 158
SECTION V -- INDUSTRY STRUCTURE
1 US Cup & Lid Market Share, 2011 201