US demand for foodservice disposables is expected to exceed by 2019. Gains will be boosted by above average growth in revenues in the limited service restaurant segment, which accounts for about 80 percent of the total for disposables, despite representing only about half of foodservice revenue. Better growth for fast casual restaurants and coffee/snack shops will boost demand for cups, dinnerware, and other products.
Outside of restaurants, foodservice disposables are used in retail establishments that sell prepared foods, vending machines, institutional foodservice outlets such as school cafeterias, sports venues, hotels, and a host of smaller outlets. Prospects in these markets vary, but the best outlook among those listed above is for retail stores, including grocery stores, warehouse clubs, and convenience stores. Retail stores will continue to expand their selections of prepared foods, in order to better compete with restaurants that offer takeout meals.
Packaging products to be fastest growing type
Packaging products are expected to post the fastest growth among foodservice disposable product types through the forecast period. The increased popularity of takeout meals from full service restaurants will drive demand for bags, wraps, and any number of rigid containers, as will continued growth in prepared food sales in supermarkets and convenience stores (including those attached to gas stations).