United States Foodservice Single-Use Products Market Analysis Report 2023: Sustainability Drives Market Value Growth & Materials Evolution But Limits Unit Gains

DUBLIN, May 16, 2023 /PRNewswire/ — The “US Foodservice Single-Use Products Market Report 2021-2027” report has been added to  ResearchAndMarkets.com’s offering.

Demand for foodservice single-use products is forecast to grow 3.8% annually to $33.2 billion in 2027. However, this growth rate hides several opposing underlying trends.

The US market for foodservice packaging and service-ware continues to face unprecedented disruption, with the lingering impact of the COVID-19 pandemic, sustainability initiatives, and longer-running market trends all combining to escalate changes in market size, product formats, and materials.

Sustainability Drives Market Value Growth & Materials Evolution But Limits Unit Gains

The foodservice industry historically considered the environmental impact of its packaging use, but cost and performance often were more important factors in purchasing decisions.

However, over the past decade sustainability has become the leading factor for choosing single-use products, especially for high-profile national chains. This has resulted in:

• A strong push toward using higher priced alternatives – such as paper, molded fiber, and bioplastics – to conventional plastics
• Efforts to eliminate certain types of disposables altogether, including small plastics (such as straws and stirrers) and products made from plastic foam

Search for the Perfect Material Continues; All Materials Have Pros & Cons

Foodservice companies and their suppliers continue to search for the ideal packaging material, a product that offers good sustainability and performance at a low price. While conventional plastics continue to dominate sales due to their low cost and good performance (and a growing focus on recycled content), the fastest industry growth is expected in newer materials such as molded sugarcane and PHA bioplastics. These new materials offer good performance, sustainability, and increasingly competitive pricing.

Carryout & Off-Premises Dining Continues at High Levels

Limited service restaurants have long had a strong takeout business, but over the past decade there has been a marked shift in focus for all restaurants – including full-service establishments – to off-premise sales, either through drive-thru, curbside, or delivery operations. Shifts away from dining inside restaurants are significantly expanding the number of disposables needed per order, leading to the development of improved products designed to deliver food safely while retaining its quality and presentation.

Historical Market Trends

At its broadest level, demand for single-use foodservice products is driven by trends in foodservice revenue, which is an indicator of the number of meals eaten away from home and the amount spent on those meals.

Growth in foodservice activity in turn is dependent on a number of macroeconomic and demographic factors including:

• Trends in food consumption and the mix of food eaten at home versus away from home
• The health of the overall economy and levels of disposable income, which impact the ability of consumers to spend on more expensive restaurant meals (compared to home cooking)
• Changes in the population mix, especially in terms of age cohorts (such as young adults) that are likely to eat out more often
• Trends in consumer spending, including spending on travel and entertainment, which impact foodservice sales at hotels and sports and recreation venues
• Student enrollment levels and trends in school lunch programs

Market Limiting Trends

• Growth in individual product prices will moderate – or even decline – from inflation-driven highs in 2021 and 2022, but this will be offset by a shift in the product mix toward higher-value materials and packaging formats.
• Real growth will be supported by continued recovery in the restaurant industry and key noncommercial foodservice markets such as sports and entertainment venues and catering. Demand will be further boosted by the popularity of takeout and delivery, especially from full-service establishments that have historically not been large users of disposables.
• Growth in units will be restrained by sustainability-driven efforts to reduce or eliminate excess packaging and serviceware use.

For more information about this report visit https://www.researchandmarkets.com/r/ytj7i9

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]
 
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
 
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

SOURCE Research and Markets