September 28, 2010 11:08 ET

US Demand for Cups & Lids to Increase 4.4% Annually Through 2014

ROCKVILLE, MD--(Marketwire - September 28, 2010) - has announced the addition of Freedonia Group Inc's new report "Cups & Lids" to their collection of Food market reports. For more information, visit

According to the report, demand for cups and lids is expected to increase 4.4 percent per year to $8.2 billion in 2014. Gains will be driven by expanding foodservice revenues and favorable prospects for foodservice packaging cups.

In addition, cup and lid demand will be supported by heightened emphasis on premium coffee by quick service restaurants and continued introductions of alternative beverages in foodservice establishments to offset the maturity of the soft drink segment.

Freedonia also found that value gains will be bolstered by increasing demand for environmentally friendly cups, such as cups made from higher-value biodegradable resins or recycled content. Demand for cups and lids in value terms will be restrained to some extent by moderating raw material prices. In unit terms, cup and lid demand will advance 2.8 percent per year to 453 billion units in 2014.

The report states that while drinking cups will remain the dominant cup type, packaging cups will register faster gains due to continued expansion in key applications such as yogurt, ice cream novelties and dry coffee as well as further development of newer uses where cups provide convenience, portability and portion control. In addition, innovations such as lidded single-serving ketchup cups that allow either dipping or squeezing will boost packaging cup demand at the expense of conventional flexible packets.

Growth in lid demand will outpace cup demand, bolstered by an increasing percentage of drinking cups using lids, heightened demand for more costly specialty lids and continued solid gains for single-serving packaging cups. Faster growth is expected for flexible and rigid lids in packaging applications due to continued popularity of single-serving sizes, further development of new applications and extensions of existing product lines with cup packaging.

The foodservice market, which according to Freedonia represented 68 percent of demand in 2009, will remain the dominant cup and lid market. Although market maturity of the large soft drink segment will moderate gains, advances will be bolstered by fountain dispenser innovations that enable users to customize beverage flavors. Other growth factors include expanded beverage menus in quick service and other restaurants; trends toward larger and more expensive drinking cup sizes; and heightened demand for more costly but more environmentally friendly products, such as cups made from biodegradable resins or incorporating significant amounts of recycled content.

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