Demand for cups and lids in the U.S. is projected to expand 3.9% per year to $10.6 billion in 2020. Gains will be supported by food trends that favor convenience and smaller portions. Unit demand will be helped by the growing focus on specialty beverages among foodservice operators and the expansion of food menus to include soup, oatmeal, and other sides. Preference for premium coffee and fruit beverages will bolster value gains as these drinks typically use more expensive cups and lids to accommodate whipped toppings or showcase the beverage’s color. These and other trends are presented in Cups & Lids, a new study from The Freedonia Group (freedoniagroup.com), a Cleveland-based industry research firm.
Packaging cups will post the fastest gains through 2020, primarily due to the fact that products packaged in cups typically are smaller portions, positioned specifically to appeal to the time-conscious consumer. According to analyst Katie Wieser, “As it becomes more common to snack throughout the day rather than prepare meals, healthy foods that are pre-packaged and portable will continue to gain favor.”