Global Paper Straw Market Size and Share Analysis 2023-2028

Market Overview

The Paper Straw Market is projected to witness substantial growth, with an estimated size of USD 1,680 million in 2023, expected to reach USD 4,527 million by 2028. This growth represents a notable compound annual growth rate (CAGR) of 21.93% during the forecast period spanning from 2023 to 2028.

The driving force behind this market expansion is the increasing demand for paper straws across various end-user industries. Notably, the demand is propelled by a growing emphasis on environment-friendly products. Government initiatives to reduce plastic usage, coupled with stringent laws restricting the use of conventional plastic materials in utensil production, have contributed significantly to the preference for paper materials. Paper straws, being adaptable, lightweight, durable, and recyclable, cater to diverse customer needs with a wide range of colors, forms, and sizes. Additionally, the burgeoning global food and beverage industry has acted as another driving factor in boosting the paper straw market.

Product Type

Market Report

No. of Pages


Release Date

April 2023

Base Year


Forecast Period


Market Size

USD 1.3 billion in 2021

Market Segments

Material Type, Application, and Geography



No. of Companies Mentioned


However, the market growth faces potential hindrances, primarily due to the higher cost associated with paper straws compared to their plastic counterparts. As per PacknWood, paper straws cost around USD 0.025, significantly higher than the cost of plastic straws, which is approximately USD 0.005. This price difference may lead some consumers to opt for cheaper alternatives, posing challenges to the paper straw market’s expansion.

The COVID-19 pandemic has had a multifaceted impact on the paper straw industry. The closure of food service establishments and restaurants during lockdowns disrupted the supply and demand of paper straws in the market. Simultaneously, the rise in online food ordering and the growing use of paper straws in hospitals for the intake of liquid medications have driven sales in these specific areas.

The paper straw market is set to experience robust growth due to increasing demand from various industries, driven by environmental concerns and governmental regulations. However, the market must address challenges related to the cost of paper straws and potential competition from cheaper alternatives. The COVID-19 pandemic has brought both disruptions and opportunities to the industry, highlighting the need for adaptability in response to changing consumer behaviors and market dynamics.

Market Segmentation

The market is segmented based on various factors, including material type, application, and geography.

Segmentation by Material Type
Virgin Paper
Recycled Paper

Segmentation by Application
Other Applications

Segmentation by Geography
North America
Asia Pacific
Latin America
Middle East and Africa

The paper straw market predominantly relies on virgin paper, which is known for its dependability, strength, and excellent qualities, contributing to reduced waste by encouraging single-use straw usage. Virgin paper, made solely from tree or cotton pulp without recycled material, is highly regarded for its superior quality. Despite being produced from virgin fibers, this type of paper is considered environmentally friendly and has earned the endorsement of the Forest Stewardship Council (FSC) for its eco-conscious attributes. Moreover, as the world heavily relies on virgin fibers for paper production, it remains a necessary component to sustain the paper industry.

In terms of end-user industries, the Foodservice segment holds the largest share, amounting to 64.74% of the market in 2022. This segment, valued at USD 850 million in 2022, is projected to reach USD 2973 million by 2028, growing at a CAGR of 22.23% over the forecast period. The food and beverage industry’s adoption of paper straws has been driven by various factors, including the shift towards curbside pickup, carryout options, and increased emphasis on hygiene during lockdowns. This trend is expected to significantly boost the demand for paper straws in the food service sector.

Notably, Canada is expected to ban single-use plastics by December 2023, which further reinforces the importance of the food service sector as a primary market for paper straws. Major players, like McDonald’s Canada, have already taken steps to eliminate plastic straws and opt for more sustainable alternatives, such as paper straws, in line with the impending regulations. As the trend of banning plastic straws gains momentum globally, the demand for alternative materials, including paper straws, will continue to rise.

In terms of geographical distribution, North America held the largest share of 29.54% in the paper straw market in 2022. Valued at USD 388 million in the same year, it is anticipated to reach USD 1271 million by 2028, growing at a CAGR of 20.92% over the forecast period.

The growth of the virgin paper packaging market is driven by its lightweight property, allowing for efficient transportation, as well as the increasing demand for customized packaging. However, the rising costs of raw materials pose a restraint to this market. On the other hand, the paper packaging market benefits from the growing awareness of the advantages of sustainable and environmentally friendly materials, with strong paper recycling initiatives providing opportunities for further growth. Despite competition from flexible plastic packaging, the adoption of paper packaging continues to progress.

In India, the ban on single-use plastics, including straws, has led to an increased demand for paper straws as an alternative. Fast-food chains, such as McDonald’s Japan, are embracing the use of paper straws and other sustainable utensils to address environmental concerns. Likewise, Lamipak, an industry leader in aseptic packaging, is expanding its production capacity for U-shaped paper straws to meet the demands of the plastic straw ban.

Various companies operating in the region are taking proactive steps to combat plastic waste by introducing paper straw solutions, earning recognition for their environmental efforts. Nestlé (Thailand) received an award for introducing flexible paper straws, further driving the adoption of paper straws in the region. As businesses and governments focus on green initiatives, the market for paper straws is expected to grow significantly across the region in the coming years.

Competitive Landscape

The paper straw market exhibits a significant level of fragmentation, with major companies such as UFlex Limited, Hoffmaster Group Inc., Fuling Global Inc., Canada Brown Eco Products Ltd, and Huhtamaki OYJ being key players. These corporations consistently engage in innovative practices and strategic partnerships to uphold and strengthen their respective market shares.

In April 2022, UFlex introduced its latest product, the U-Shape Paper Straw, with ambitious production targets. The company aimed to manufacture 100 million straws in the first month of its launch, followed by a projected production of 200 million straws in subsequent months. Additionally, UFlex aspired to sustainably produce an impressive 2.4 billion straws annually.

Key companies profiled in this report include Uflex Limited, Hoffmaster Group Inc., Transcend Packaging Ltd, Huhtamaki Oyj, Fuling Global Inc., Soton Daily Necessities Co. Ltd, Tetra Pak International SA, Canada Brown Eco Products Ltd, Karat by Lollicup, IPI SRL.

Recent Industry Developments

In February 2023, Tetra Pak initiated a research project in collaboration with MAX IV, the most advanced synchrotron radiation facility. The research focused on advancing fiber-based sustainable food packaging by gaining new insights into the nanostructure of fiber materials. The ultimate goal of this study was to optimize the composition of materials used in the production of paper straws.

In July 2022, SIG India introduced a range of recyclable paper straws. SIG, a renowned provider of aseptic carton packaging solutions, launched these paper straws in various dimensions, shapes, and applications. The introduction of these paper straws was in response to the pressing need for environmentally friendly alternatives to plastic straws, especially in the context of the plastic ban in India. SIG’s paper straws offer a biodegradable and non-plastic solution to reduce the environmental damage caused by traditional plastic straws.

Key Questions Answered

What is the study period for the Paper Straw Market?
The study of the Paper Straw Market encompasses the years 2018 to 2028.

What is the growth rate of the Paper Straw Market?
The Paper Straw Market is experiencing a growth rate of 21.93% over the next 5 years.

What is the size of the Paper Straw Market?
The Paper Straw Market is projected to reach USD 1,680 million in 2023 and is expected to grow at a CAGR of 21.93% to reach USD 4,527 million by 2028.

Which region has the highest growth rate in the Paper Straw Market?
Asia-Pacific is exhibiting the highest Compound Annual Growth Rate (CAGR) from 2018 to 2028 in the Paper Straw Market.

Which region has the largest share in the Paper Straw Market?
As of 2022, North America holds the highest share in the Paper Straw Market.

Who are the key players in the Paper Straw Market?
The major companies operating in the Paper Straw Market include UFlex Limited, Hoffmaster Group Inc., Transcend Packaging Ltd, Huhtamaki Oyj, and Fuling Global Inc.

Original price was: USD 4,750.Current price is: USD 2,850.

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Global Paper Straw Market Size and Share Analysis 2023-2028

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Global Paper Straw Market Size and Share Analysis 2023-2028

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