U.S. demand for foodservice disposables to grow 4.1% per year to US$18.8B in 2015 as rebound in economy prompts diners to eat out; packaging products to see fastest gains, climbing 4.5% to US$8.8B: Freedonia

CLEVELAND , August 3, 2011 (press release) – US demand for foodservice disposables is expected to increase 4.1 percent per year to $18.8 billion in 2015. Growth will be driven by accelerating foodservice revenue increases resulting from a rebound in the broader US economy, which will stimulate increased frequency of dining out, thereby creating opportunities for disposables. Demographic trends such as high numbers of households where all adults work, growth in empty nest households, and the relatively small average US household size will tend to favor higher spending for meals eaten or prepared away from home. These and other trends are presented in Foodservice Disposables, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Packaging products will achieve the fastest gains, with demand expected to climb at a 4.5 percent annual pace to $8.8 billion in 2015. Advances will be driven by a healthy outlook for the large limited service segment, which accounts for half of overall restaurant revenues but generates a much higher share of foodservice disposables demand.

Demand for serviceware, including cups, dinnerware, utensils and other products, is projected to increase 4.0 percent per year to $8.6 billion in 2015. Gains will be supported by above-average growth for limited service restaurant and retail establishment revenues, and steady demand in institutional and other markets. Other factors providing momentum will be the increased focus on gourmet coffee and specialty cold drinks by quick service restaurants and convenience stores.



Eating and drinking places generated 66 percent of foodservice disposables demand in 2010. Advances will be helped by above-average revenue growth for limited service restaurants, which rely heavily on disposables and hold strong appeal to price-sensitive and deal-oriented consumers. Through 2015, retail and vending will represent the fastest-growing market for disposables. Gains will be fueled by greater requirements for disposables due to the increased focus on prepared foods in supermarkets, warehouse clubs, convenience stores and other retail stores. Upgraded coffee and the increased availability of fresh salads and sandwiches in convenience stores will also assist disposables demand in the retail market.

                                                                                                                                               

US FOODSERVICE DISPOSABLES DEMAND

(million dollars)

 

% Annual Growth

Item     

2005

2010

2015

2005-

2010

2010-

2015

 

 

 

 

 

 

Foodservice Disposables Demand

12450

15330

18750

4.2

4.1

Eating & Drinking Places

8165

10055

12290

4.3

4.1

Retail & Vending

1329

1690

2110

4.9

4.5

Institutional

1230

1500

1820

4.0

3.9

Other

1726

2085

2530

3.9

3.9

 

 

 

 

 

 

 © 2011 by The Freedonia Group, Inc.



Foodservice Disposables (published 08/2011, 335 pages) is available for $5100 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.