Foodservice Disposables Growth Led by Packaging

Published: January 01, 2008

CLEVELAND, OH

Foodservice disposables demand in the US is projected to increase 3.8%/yr to $16.6 billion in 2011. This is the conclusion of a new study from The Freedonia Group. Growth will be driven by rising disposable personal income and increased spending for food eaten or prepared away from home.

The fastest advances are expected for packaging products, forecast to increase at an annual rate of 4.4%. Demand will be propelled by favorable growth for limited service restaurants, which account for nearly half of overall restaurant revenues. Continued growth of smaller limited service segments, such as fast casual and snack/bakery/coffee shop restaurants, also will boost packaging demand.

Lids and wraps are expected to post the strongest gains, with most container types also showing good growth. Disposables made from degradable materials will post robust advances from a low base.

Demand for napkins and other products will lag the overall industry, says the study, based on cost-saving measures such as general downsizing of napkins.

Demand in eating and drinking places is forecast to expand 3.9%/yr to $11 billion in 2011. In addition to menu changes necessitating greater usage of containers, disposables demand in limited service restaurants will be further aided by increased varieties of snack-sized menu items and an increased focus on premium coffee.

Disposables in institutional and other markets will increase below the average pace but all will provide areas of opportunity.

For more information visit www.freedoniagroup.com.

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