- The Global Drinking Straw Market is expected to grow at a high CAGR during the forecasting period (2020-2027).
- Drinking straw is a small cylindrical hollow tube used for consuming a beverage by placing its one end in the mouth and other in the beverage. It can be made up of paper, bamboo, stainless steel, plastics, or others. Drinking straws are widely used in cars, cafes, quick service restaurants, lounges, roadside eateries, and in residential houses and apartments.
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- The market growth is driven by the blooming food and beverage industries globally with the changing consumer's preferences and tastes which have led to the customization of the food and beverage. The market is witnessing the high increase in the number of international and local restaurants, hotels, and café chains which is increasing the demand for drinking straws.
- Growing concerns regarding the usage of environment-friendly products are increasing the demand for eco-friendly, natural & organic, and reusable straws. Several companies are developing environmentally friendly biodegradable and renewable products with innovation. For instance, in September 2019, Ahlstrom-Munksjö had launched a new innovative U-shaped drinking straw i.e. celluStraw which is a fiber-based solution made of renewable materials. It is an industry’s emerging initiatives to phase out single-use plastic straws. It comprises of the specialty paper grades developed for the inner and outer plies of paper straws. It has high wet-strength and mechanical resistance which ensures that the paper straws remain in excellent condition and withstand in liquids for sufficient time.
- However, the availability of alternative materials such as metal, glass, bamboo, and silicone for producing the drinking straw is hindering the market growth. Use of the plastic straw is impacting the environment, birds, and animals. Around 437 million to 8.3 billion plastic straws are lying on the world's coastlines.
Market Segment Analysis
- The global drinking straw market is segmented based on type as a plastic drinking straw, and paper drinking straw. A paper drinking straw is expected to have high market growth due to rising demand for the paper drinking straw as the packaging industry is witnessing a shift towards non-plastic sustainable materials from plastic products. Consumers are widely using the paper drinking straws at home, parties, on-the-go drinks, concession stands, food service, schools, institutional, and others.
- The plastic drinking straw segment is expected to have negative market growth over the forecasted period due to the banning of plastic straws. Corporations, municipalities, and governments are imposing bans on plastic straws. For instance, in July 2018, McDonald’s has planned to ban plastic straws at its the United Kingdom and Ireland restaurants. These plastic straws are cheaper in comparison to the paper straws. Few of the market players have taken the initiatives of manufacturing the paper straws to replace the plastic straws.
- Further, the market is also classified based on application into foodservice, institutional, and households. Foodservice accounts for high market size due to the rising use of drinking straws in bars, lounges, restaurants, motels, and hotels. High sales of drinking straws are observed in bars, lounges, and hotels in comparison to the restaurants and motels. Majority sales of drinking straws are observed in the Cafes.
- Institutional sectors comprised of schools, colleges, research centers, nursing homes, hospitals, and others. Institutional sectors account for the positive market share due to the rising demand for drinking straws in the institutional sector, especially incorporates. Moreover, there is rising consumption of drinking straws in the healthcare sectors is expected to accelerate the market over the forecasted period.
Market Geographical Analysis
- By region, the global drinking straw market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominates the market due to growing food services by commercial foodservice such as full-service restaurants, fast food outlets, caterers, some cafeterias, and other places and institutional food service facilities such as schools, colleges, and healthcare institutes. According to the United States Department of Agriculture, food services and food retailing supplied about USD 1.46 trillion of food in 2014. Full-service and fast-food restaurants account for 79 percent of all food-away-from-home sales.
- There is a high demand for straws in the United States and Canada. Around 500 million straws are used every single day in the United States. Every year, around 8 million tons of plastics flowed in the oceans and plastic straws account for 0.025% of those plastics. The market is witnessing the ban on the use of plastic straws, especially in the United States due to rising environmental concerns. Single-use plastic and plastic packaging harm the quality of food chains and water supplies and kill a large number of animals, fish, and birds each year. Starbucks has planned to phase out plastic straws by 2020. Alaska Airlines has also planned to phase out plastic straws.
- The Asia Pacific is expected to have the fastest market growth due to the rising demand for straws due to the rising number of manufacturers and retailers for manufacturing and selling plastic straws. Several companies are looking for opportunities in this region. The rapid growth of the beverage industry shall stimulate market growth. The beverage industry accounts for around USD 230 million out of USD 65 billion food processing industry. Rising awareness and attractiveness towards organic beverages especially in India and China are expected to boost the market growth over the forecasted period. Growing digital transformation has led to the high adoption of E-commerce due to increasing internet and smartphone penetration. According to the Indian Brand Equity Foundation, the Indian e-commerce market is expected to grow from USD 38.5 billion in 2017 to USD 200 billion by 2026. India’s internet economy is expected to increase from USD 125 billion in 2017 to USD 250 billion by 2020.
Market Competitive Trends
- The global drinking straw market is highly competitive with the presence of local and international players with competitive prices. Companies are focusing on strategic developments such as new product launch, market expansion, technology advancement, product differentiation for holding the major share in the market. R&M Plastic Products, Aardvark, B&B Straw Pack, Nippon Straw, The Paper Straw, Stone Straw, and Tawfikiya Plastic
- Several companies are replacing the plastic straws with the paper straws due to the changing preferences of customers and requirements for an eco-friendly product. For instance, in August 2018, Footprint, LLC, had launched the paper straw manufacturing site based in the United States to eliminate plastic straws. The company comprises of the 100% bio-based paper straws available in a wide range of colors, sizes, and lengths. The manufacturing site has a production capacity of 27 million paper straws daily. This company has replaced more than 8 million pounds of plastic from its packaging. In December 2018, Fuling Global Inc. had set up the new manufacturing plant in Monterrey, Mexico for producing paper straws and paper cups with 10,000 tons capacity.
- The companies are entering into the collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for drinking Straw and their expansion across the globe. For instance, In December 2019, Ahlstrom-Munksjö had acquired converting operations in China and the United States from Shunde Lucas and Altior Industries. Through this acquisition, Ahlstrom-Munksjö would have local filter converting capacity in China and a foothold for expanding sales of other products within the Advanced Liquid Technologies business.
- Companies are also raising the investments for increasing their expansion, customer reach, and market penetration. For instance, in December 2019, Ahlstrom-Munksjö had issued EUR 100 million capital securities that would be used for the general corporate purposes and refinancing, to increase financial flexibility and support the company’s ongoing strategic initiatives.
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