US demand for foodservice disposables is projected to advance 3.5 percent per
year to $17.7 billion in 2013. Growth will decelerate from the performance of the past
decade, but will reflect a recovery from the recent weakness in the US economy. In
addition, value advances will be tempered by more moderate price increases for raw
materials following sharp spikes, primarily due to resin pricing volatility and high energy
and transportation costs, in the 2003-2008 period. Despite these factors, demand for
disposables will be supported by continued growth in the share of away-from-home food
expenditures as the economy recovers, along with faster-paced lifestyles and the
willingness of consumers to pay for convenient, ready prepared foods. These and other
trends are presented in Foodservice Packaging, a new study from The Freedonia
Group, Inc., a Cleveland-based industry research firm.
The fastest gains are anticipated for packaging products, which are forecast to
increase at a 4.2 percent annual pace to $8.2 billion in 2013. Advances will be
fueled by above-average revenue growth in the large limited service segment, which
accounts for nearly half of overall restaurant revenues but generates a much higher
share of foodservice disposables demand. The fastest growth is expected for wraps
and lids, with most container types also expected to register healthy gains.
Demand for serviceware, including cups, dinnerware, utensils and other
products, is forecast to increase 3.2 percent annually to $8 billion in 2013.
Packaging and serviceware made from biodegradable materials will post robust
advances from a low base, the result of increased price competitiveness with
petroleum-based plastic materials, rapidly expanding capacity, increased pressure on
foodservice operators to reduce their environmental footprint and growing bans on
polystyrene-based disposables.
Disposables demand in eating and drinking places, which generated 66 percent
of the total in 2008, is expected to log growth in line with the overall average.
Advances will be driven by expanding menu options in quick service restaurants and
increased requirements for disposables among full service restaurants. Retail and
vending will represent the fastest growing disposables market. Gains will be propelled
by the growing presence of prepared foods in supermarkets, warehouse clubs,
convenience stores and other retail stores.
