Paper Straw Market Report 2026

The paper straw market size has grown rapidly in recent years. It will grow from $2.07 billion in 2025 to $2.35 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to implementation of plastic straw bans, rising environmental awareness, growth of foodservice and quick-service restaurants, availability of paper pulp materials, expansion of beverage takeaway culture.

The paper straw market size is expected to see rapid growth in the next few years. It will grow to $3.86 billion in 2030 at a compound annual growth rate (CAGR) of 13.2%. The growth in the forecast period can be attributed to increasing regulatory restrictions on single-use plastics, rising demand from institutional catering services, expansion of eco-friendly hospitality practices, innovation in durable paper straw designs, growth of sustainable packaging branding. Major trends in the forecast period include increasing adoption of plastic-free beverage accessories, rising demand for compostable drinking straws, growing use of custom printed paper straws, expansion of foodservice sustainability initiatives, enhanced focus on water-resistant paper coatings.

The rising consumption of beverages is expected to drive the growth of the paper straw market in the coming years. Beverages are liquid products specifically intended for human consumption and are available in a wide variety of forms, flavors, and categories. These drinks are typically consumed to quench thirst or for enjoyment. The shift from plastic straws to paper alternatives supports efforts by consumers and businesses to reduce plastic pollution and encourage more sustainable practices within the beverage industry. For example, in March 2025, according to the Australian Bureau of Statistics, an Australia-based national statistical agency, per capita apparent consumption of non-alcoholic beverages reached 387.1 mL per day in 2023-24, representing an increase of 8.9 mL, or 2.4%, compared with 378.2 mL per day in 2022-23. Therefore, the growing consumption of beverages is driving the expansion of the paper straw market.

Major companies operating in the paper straw market are increasingly focusing on the development of innovative biodegradable biopolymer straws to improve durability, environmental sustainability, and overall user experience while reducing reliance on traditional paper or plastic straws. Biodegradable biopolymer straws are made from plant-based polymers that naturally decompose into harmless substances such as water and carbon dioxide, significantly lowering environmental impact compared with conventional plastic straws. For instance, in December 2024, Starbucks Corporation, a US-based café chain, began introducing biodegradable plant-based straws produced using Green Planet, a 100% biomass-derived biopolymer developed by Kaneka Corporation. These straws are designed to biodegrade in both soil and seawater, provide greater durability and a smoother drinking experience than paper straws, and reduce discarded straw waste weight by around 50%. This development highlights the industry’s transition toward advanced biopolymer straw solutions that balance sustainability with consumer convenience.

In August 2025, BioPak Pty Ltd, an Australia-based supplier of compostable, recyclable, single-use, and reusable foodservice packaging, acquired Bygreen for an undisclosed amount. Through this acquisition, BioPak aims to expand its sustainable packaging portfolio and strengthen its global presence in the paper straw segment. Bygreen Pty Ltd. is an Australia-based manufacturing company specializing in the production of paper straws.

Major companies operating in the paper straw market are Charta Global Inc., Canada Brown Eco Products Ltd., Huhtamaki Oyj, Hoffmaster Group Inc., Transcend Packaging Ltd., BioPak UK Ltd., Bygreen Paperpack, Fuling Global Inc., Yutong Eco-Technology (Suqian) Co. Ltd., Tipi Straws, Ningbo Jiangbei Shenyu Industry and Trade Co. Ltd., Tetra Pak Ltd., Hello Straw Ltd., UFlex Limited, Soton Daily Necessities Co. Ltd., Nippon Paper Industries Co. Ltd., Footprint LLC, Duni Group, Lollicup USA Inc., IPI SRL, Aardvark Straws, The Paper Straw company, The Blue Straw, Eco Guardian Inc.

Europe was the largest region in the paper straw market in 2025. The regions covered in the paper straw market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the paper straw market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The paper straw market consists of sales of flexible paper straw, non-flexible paper straw, and virgin kraft paper straw. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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