Global Biodegradable Straws Market - 2021-2028
Biodegradable straws are the sustainable solution and most effective alternative to plastic straws. As conventional plastics take as long as 500 years to decompose in nature, consumers are more inclined to use environmentally friendly products which can degenerate into nature within months. For example, biodegradable materials such as paper can break down in a matter of months - or even weeks. This makes them less damaging for the ocean and the environment at large. Biodegradable straws are stylish and colorful similar to regular straws but without the environmental impact. These types of straws enable consumers to lessen their carbon footprint while still enjoying drinks in a fun nature. The global biodegradable straws market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
Market Dynamics: Growing environmental concern and negative effect of plastic straw is driving the biodegradable straws market
Biodegradable straw manufacturers are witnessing remarkable adoption across a broad spectrum of end-use industries. The major reason for a radical change in consumer behavior regarding the use of plastic straw, the increasing campaign from the environmentalist and growing sense of responsibility towards the environment. For example, Starbucks has declared a complete phasing out of plastic straws by 2020 as its objective to contribute to environmental protection. The change in consumer behavior has provided opportunities to the new entrepreneurs who innovate new more sustainable types of straws made from natural raw materials and recyclable ingredients. These new alternatives are increasingly thought of as the future of the drinking straw market devoid of plastic straws and are the main driving factors in the biodegradable straws market. For example, PacknWood distributes paper straws using recyclable and organic materials to coffee shops, Las Vegas casinos and large stadiums like Madison Square Garden and according to its CEO Adam Merran, it is all about the perspective of consumers and at present, there is a positive perception on paper straws.
Strict regulations regarding the use of plastic straws in countries and cities across the globe are forcing restaurants and cafes to depend on alternative straws which are strengthening the business of biodegradable straws. For instance, San Francisco, U.S., implemented a plastic bag ban that resulted in a 72% decrease in plastic litter on local beaches from 2010 to 2017. Additionally, in North America, there have been many local and national campaigns and events for consumers and businesses to willingly decrease single-use plastic consumption. All these factors help the biodegradable straw market positively, as they are now easily available in restaurants and cafes. Many new start-ups have emerged in recent years in North America to gain the market share of this new trend. For instance, Aardvark Straws Company launched a compostable, biodegradable and renewable straw with high durability up to three hours in cold drinks
However, high cost, less effectiveness at the time of use compared to plastic straws and low awareness of the biodegradable product in emerging countries is expected to hinder the market up to some extent.
Market Segmentation: Paper straws segment is the dominating type segment, due to growing concern on environment safety
By type, the global biodegradable straws market is dominated by paper straw segment with market share of XX% in 2020, due to easy availability, history of use before plastic straws as a natural biodegradable product. Several leading players have launched paper based drinking straws which created massive demand due to moderate cost and environment friendly label on it. In March 2019, Nippon Paper Industries Co., Ltd launched its paper straws which features smoother surface than conventional paper straw.
On the basis of end-user, global biodegradable straws market is dominated by bars & restaurants with a market share of XX% in 2020, due to consumer behavior of expecting straws when drinking beverages and strict regulations on using plastic straws, which are mainly targeted on bars & restaurants.
Geographical Penetration: Europe is the largest market in biodegradable straws market
Europe is the largest market for biodegradable straws, with nearly XX% of the global sales revenue in 2020, due to extensive awareness campaigns and events organized by government bodies as well as private enterprises. In addition, strict legislation on single-use plastic production is helping the market. For instance, the European Parliament approved a law banning single-use plastic consumption by 2021 throughout the EU, in 2019. North America is the second-largest region for the biodegradable straws market. The sales of plastic alternative straws witnessed a major spike with large number of cities implementing ban on single-use plastic disposables. Even if federal laws against the banning of plastic straws are not been implemented, but regional and city-based government bodies are increasingly implementing strict laws regarding the use of single plastic straws which is strengthening the market of biodegradable straws in this region.
Competitive Landscape: Growing product introduction is making the market more competitive
The global bio degradable straws market is fragmented with leading companies are recently established mainly in Europe and the market is starting to emerge as new trend in North American countries. The market competition is intense owing to increasing innovation and growing merger & acquisition activities. The leading market players of biodegradable straws industry are Aardvark Straws, HAY! Straws, The Paper Straw Co, Hello Straw, Huhtamaki, The Blue Straw., Biopac UK Ltd, JOVAMA, Sas Ostone, TIPI STRAWS and others.
COVID-19 Impact: Pandemic had a negative impact on global biodegradable straws market
Biodegradable straws market is adversely affected due to the covid-19 as countries around the globe were in the lockdown state for most of 2020. Drinking straws are most commonly used in hotels, bars, lounges, restaurants, cafes, cinema theaters and motels; and these food services businesses were closed since April 2020. For example, Huhtamaki, a global leader in providing foodservice solutions, has decreased net sales by around 3% to USD 3,963.75 million during 2020. Comparable net sales growth was around -2%. The company's business in North America had a growth rate of 1% compared to the previous year's annual growth of 9%. The beginning stages of the 2020 COVID-19 pandemic resulted in an 80 percent reduction in F&B open rates in some markets of North America. Restaurants, bars, cafes and eateries were forced to close. However, with vaccination programs across the globe, countries are easing lockdown restrictions. In addition, food aggregators and food delivery services stepped in early to come back to normal business conditions. This is expected to help the biodegradable straws market post-pandemic