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Disposable Cups Market: APEJ Region Expected to be the Fastest Growing Market for Disposable Cups over the Forecast Period 2017-2026

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Global sales of disposable cups were valued at close to US$ 12 Bn in 2016 and are projected to reach more than US$ 20 Bn by 2026. Sales revenue is expected to increase at a CAGR of 5.9% in terms of value during the projected period. APEJ is anticipated to be the fastest growing market for disposable cups, registering a CAGR of 6.3% in value terms over the estimated period. By material type, the printable paper segment dominated the disposable cups market with close to 50% share in terms of revenue in 2016; while in the end use category, the food retail segment is anticipated to increase 1.5X during 2016-2026.

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Changing business models in the food and beverage industry likely to boost revenue growth in the global disposable cups market
Apart from its lightweight nature, disposable cups come in a variety of designs that are suitable for both cold and hot beverages. More often these cups are recyclable and cost-effective. Moreover, as disposable cups are made of plastic, there are fewer chances of food contamination. As a result, consumers largely prefer disposable cups over non-disposable cups and this factor is expected to create a positive impact on the growth of the global disposable cups market.

Food packaging has a great scope in the present scenario. Factors such as the changing lifestyle of people, rising per capita income, rapid urbanisation, and changing eating habits of the population have caused a major shift in focus of consumers towards on-the-go food items. The growing preference for ready-to-eat food and takeaway food has augmented market demand for good food packaging and disposable cups are apt in this scenario. This major global trend is likely to boost the global disposable cups market growth during the period of assessment.

Further, an increasing awareness of hygienic products also fuels the growth of the global disposable cups market. There is an acute increase in the number of quick service restaurants globally and this particular trend has led various companies to recognise the inherent lucrative business opportunity. A large number of regional and global players are coming forward to invest in this market and this factor is a key driver for the tremendous growth of the global disposable cups market.

A strategic acquisition of AEP Industries by Berry Plastics Corporation will help the latter expand production capacity within the engineered materials division

In exchange for all of the outstanding shares of AEP Industries’ common stock and outstanding AEP Industries equity awards, U.S based Berry Plastics Corporation has completed the acquisition of the U.S based AEP Industries in January 2017. The financials of the acquisition stand at an outstanding valuation of close to US$ 300 Mn, besides Berry Plastics Corporation clearing AEP Industries’ long-term debt of almost US$ 165 Mn. According to some highly placed officials at Berry Plastics Corporation, the acquisition has given the company an opportunity to expand the scope of its product offerings and production capacity that would enable them to better serve their customers.

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In a similar way, Finland based food and drink packaging company Huhtamaki Oyj has acquired Belfast based Delta Print and Packaging for £ 80 Mn in May 2016. This acquisition also includes Delta’s production plant in Poland. The Huhtamaki Group specialises in moulded fibre packaging, food service packaging and flexible packaging. The company has also completed the procedure for acquiring Czech Republic’s FIOMO – a manufacturer of flexible packaging foils and labels – in the previous year.

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