Straw Paper Market - Forecasts from 2024 to 2029

The straw paper market is expected to grow at a CAGR of 11.42% from US$1.136 billion in 2022 to US$2.421 billion in 2029.

Straw paper has been widely accepted by the retail and food service industries as a more ecologically friendly solution for packaging, straws, and other single-use goods. The use of Straw paper in the sector has propelled the market's expansion. The implementation of legislation limiting the use of single-use plastics in a variety of industries and geographic places has also directly spurred the expansion of the Straw paper industry by requiring businesses and customers to find alternatives to comply with these rules.

Introduction:

Straw paper, also known as agricultural Straw paper, is a more environmentally friendly and sustainable alternative to regular wood pulp paper. It is made from fibrous leftovers of cereals like wheat, rice, and barley that are generally destroyed or abandoned. Straw paper is produced in a less resource-intensive and ecologically benign manner, eliminating the necessity for deforestation and the energy-intensive pulping of wood. As a result, Straw paper is gaining appeal in the paper industry as a greener option. Several reasons contribute to its increasing importance as a market driver. Firstly, growing environmental awareness and demand for sustainable products are driving consumers and businesses to seek out eco-friendly options. Furthermore, strict environmental rules and measures to minimize carbon footprints are encouraging the use of Straw paper. This expanding market is being fuelled further by its potential for cost-effectiveness and improved crop waste management in agricultural regions, resulting in a win-win scenario for both the paper sector and the surroundings.

Drivers:

• Rising awareness about sustainability and eco-friendly substitutes is propelling market growth:Massive consumer education programs highlighting the advantages of Straw paper and the disadvantages of single-use plastics have been critical in increasing demand. Outreach programs and awareness campaigns have been critical in promoting the environmental benefits of Straw paper. Businesses are increasingly recognizing the branding and strategic advantages of integrating Straw paper products into their offerings. It appeals to clients who respect sustainability and portrays them as environmentally conscientious companies. This smart branding is hastening the adoption of Straw paper in a range of businesses.
• The expanding demand for sustainable products from the food service industry is a primary reason fueling market expansion:The food service industry is under growing pressure to adopt more ecologically friendly and long-term practices. Because Straw paper is biodegradable and compostable, it solves these challenges by reducing the environmental impact of single-use items. The cost competitiveness of Straw paper with plastic straws has improved as production efficiency has grown. As a result, for food service businesses, it is a practical and cost-effective solution. By designing Straw paper straws with their logo and marketing, food service enterprises may reinforce their image and increase brand loyalty.
• Strict regulation from the government body is a primary factor for the market expansion:Straw paper is becoming increasingly important in a variety of industries and applications as rules against single-use plastics become more stringent. As environmental awareness grows, several nations and regions have begun enacting stronger rules and regulations to reduce the use of single-use plastics, such as plastic straws. This trend has resulted in a considerable demand for environmentally friendly alternatives such as Straw paper, which may be utilized in a variety of applications.
• The rising trend of customizable products is appealing to customers hence driving demand:Collaborations with designers and artists result in limited-edition Straw paper objects bearing the artist's trademark, which appeal to a market segment that values originality and elegance consequently creating demand.

Products offered by key companies:

• Renewable and biodegradable straw, Stora Enso Oyj:The straw has a high usability and functions similarly to a standard straw. It is compatible with current waste systems and is intended to be recycled through industrial composting. The straws are made using gear that was originally meant to make plastic straws. These straws have a distinct appearance and feel, are recyclable, and are constructed from wood and plant-based binders.
• BioStraws, Biopac:BioStraws are constructed from 3-ply high-quality FSC Mix certified paper. These disposable paper straws are a more environmentally friendly alternative to plastic straws. These wonderfully designed normal paper straws come in a variety of forms and colours. These biodegradable straws are ecological, attractive, and useful, and they come in a variety of sizes to fit any drink. If stored cold and dry, these paper straws have an endless shelf life.

The prominent growth in the virgin paper sector under the material type segment

In terms of value and volume, the virgin paper segment is expected to lead the paper straw market throughout the forecast period. Growing environmental awareness, as well as a preference for eco-friendly and sustainable products, are driving up demand for virgin kraft paper. It is regarded as a renewable and biodegradable alternative to standard paper and plastic products. Consumer preferences are trending toward more ecologically friendly solutions. Many consumers choose articles and packaging made of virgin kraft paper due to its eco-friendly image and recyclability.

Businesses are using virgin kraft paper to project a premium and environmentally sustainable business image. This appeals to customers who value quality and sustainability. Furthermore, the usage of virgin kraft paper is not limited to a particular place or industry, resulting in growing demand across a wide range of industries and applications.

The European region is expected to hold a significant share of the straw paper market:

In terms of value, the European Straw paper market is expected to develop at the fastest CAGR during the forecast period. This expansion may be ascribed mostly to increased demand for Straw paper in important European nations such as Germany and the United Kingdom, where they are increasingly being used in the food service industry. Consumer awareness and evolving preferences are driving a change toward sustainable and eco-friendly alternative to plastic in these nations. Moreover, the rise of the Straw paper business in Europe is being fueled by environmental concerns and regulatory laws. Reforms and constraints to address plastic pollution and minimize single-use plastics have been aggressively implemented in European nations. Bans on plastic straws and other single-use plastics have created a favourable atmosphere for the usage of Straw paper. As a result, the European market for Straw paper is likely to see an increase in demand as businesses and consumers alike embrace sustainable alternatives to plastic and support the region's continuing environmental initiatives.

Key developments:

• A strategic collaboration and investment agreement were signed in April 2023 by Transcend Packaging and ITOCHU Corporation, one of the biggest firms in Japan and a well-known supplier of pulp and paper products. Through this agreement, a wide choice of environmentally friendly packaging materials made of paper and fibres will be available in different markets throughout Europe, the UK, and beyond. Transcend Packaging is perfectly positioned to broaden its reach and provide ecologically friendly packaging solutions globally by partnering with ITOCHU.
• To improve fiber-based sustainable food packaging, Tetra Pak began undertaking research in February 2023 in partnership with MAX IV, the most advanced synchrotron radiation facility. The study's objective was to get deeper insight into the fibre materials' nanostructure to enhance their composition for use in paper straws.
• In April 2022, Ulfex introduced their U-shaped paper Straw, to produce 200 million in the months following the production of the first 100 million. Furthermore, Ulfex intends to manufacture 2.4 billion straws a year.

Segmentation

BY MATERIAL TYPE

• Virgin Kraft Paper
• Recycled Paper

BY END-USE

• Foodservice
• Institutional
• Household

BY APPLICATION

• Straight
• U-bend
• Telescopic

BY GEOGRAPHY

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others