Biodegradable substances are the materials that are able to decay naturally by the action of microorganisms. The biodegradable cups are made of the PLA coating, sugarcane starch, wheat straws, corn, and paper that can effectively disposed and recycled. The PLA coating is also known as poly-lactic acid that is derived from renewable and biodegradable materials. The manufacturers are improving the value added features of the biodegradable cups such as heat resistance, heat sealing, and water based elements that pose no risk for environment. The biodegradable cups are categorized into two types such as biodegradable paper cups and biodegradable plastic cups.

Market scope and structure

COVID-19 scenario analysis:

• The demand for the biodegradable cups is expected to decrease in 2020 due to lockdown imposed by the government and low demand from Food & beverages industry.
• COVID-19 crisis is likely to affect the biodegradable cups industry negatively, as a result of halted manufacturing and massive reduction in demand for luxury and non-essential services globally.
• COVID-19 crisis had a mixed impact on the packaging industry, mainly due to closure of physical retail stores globally. However, the availability of online retailing has absorbed the high impact of this shutdown.
• The requirement of eCommerce specific packaging is likely to remain strong, although the ecommerce companies would have to focus on protection of goods and sanitization of packages. 
• In addition, the food packaging industry is on the frontline within the global packaging market, owing to the demand for essential products such as groceries and fresh food mainly from local e-retail sites. 
• Industrial, transportation, and bulk packaging has faced a sharp decline, owing to decreased demand for non-essential goods during the first two quarters of 2020. 
• Owing to the lowered disposable income of maximum population and weak demand for packaging from industrial goods, the packaging industry might face significant pressure of reduction in both wholesale as well as retail costs. 
• Consumers are likely to stay hesitant for consumption of luxury products, travel, and hospitality services, which is expected to hinder the packaging industry growth in the future after the COVID-19 crisis. 

Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis

The increase in demand for the compact electronic components and semiconductors that reduce the sizes of electronic devices is expected to fuel the growth of the biodegradable cups market. The increase in demand for the eco-friendly solution in the food & beverages packaging has created a positive impact in the biodegradable cups market. The rise in awareness regarding the hazardous effects of plastic cups on the environment has increased the demand for the biodegradable cups owing to their eco-friendly nature. The government stringent regulations to reduce the usage of plastics has led to the increase in consumption for biodegradable cups among the customers. The biodegradable cups are made from paper, corn, sugarcane and wheat straws which are renewable sources in-comparison to the traditional plastic cups that are made of non-renewable sources. Thus, the eco-friendly nature of biodegradable cups drives the growth of the biodegradable cups market. The increase in plastic wastes in the landfills and oceans is expected to boost the demand for biodegradable cups owing to their recyclable and composting properties. The biodegradable plastic cups use 65% of less energy than the traditional oil based plastic cups, which in turn drives the market of biodegradable cups. However, the substantial amount of fertilizers used along with chemical process that turns organic substances into biodegradable plastic cups can hamper the growth of the market. On the other hand, the manufacturers are adopting new technologies and alternatives for the production of biodegradable cups, which in turn provides new pathways to the biodegradable cups market.

New product launches to flourish the market

The advanced biodegradable cups that use recyclable material and PLA films has been a replacement for the traditional petroleum based plastic cups. In the past few years, many such products having unique features were launched in the market. In January 2020, one of the global leaders in biodegradable cups, Lavazza Professional, has launched a new KLIX ECO cup. The product is specially designed for the vending machines that serves hot and cold beverages. The use of this product reduces the environment impact by 2/3 in comparison to PE lining plastic cups. The product is made of water soluble coating, which can be easily disposed and recycled.

High demand from applications:

The biodegradable cups are used in the food & beverages industry for the packaging of hot and cold beverages and other food materials. The biodegradable cups are processed in four stages that are gathering materials, producing paperboard, coating PLA film, and manufacturing of paper cup. The manufacturers are introducing new paperboard designs for the biodegradable paper cups that can be effectively recycled. The biodegradable plastic cups have the PLA coating that makes them easy for composting and recyclable than the traditional plastic cups which has PE coating that are not decomposed. The biodegradable plastic coffee cups can be decomposed in the industrial compost where it takes less than 30 days to decay. The biodegradable paperboard cups are decomposed in the industrial compost within 10 days with temperature of 65 degree Celsius. The PLA coated cups are a viable solution to the landfill issues as it is a made of recyclable materials such as corn starch, sugarcane and wheat straws. The biodegradable cold cups are usually made of bio-plastics. The bio-plastics are used in production of crockery, packaging, cutlery, bowls and straws.

Key segments covered:

Key benefits of the report:

• This study presents the analytical depiction of the biodegradable cups market along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the biodegradable cups market share.
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the biodegradable cups market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed Market analysis based on competitive intensity and how the competition will take shape in coming years.