Summary

Market Overview
The India and GCC paper straws market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 31.5% within the forecast period (2022-2029).
Paper straw is a utensil used to transport beverage contents to one's lips. Paper straws are typically created from virgin materials; however, reusable straws are becoming more popular due to environmental concerns and new regulations. Often, these straws are constructed from recycled paper. Paper Straws were originally designed to be a one-time-use item.
Most paper straw manufacturers use Virgin paper because it is reliable, sturdy and has better absorbency rates and quality and efficacy, which lowers waste because users do not have to use numerous straws for single use. As a result, the segment is in high demand in India and the Gulf Cooperation Council. One of the primary factors for the growth of the India and GCC paper straw markets is consumer preference for environmentally friendly and appropriate products. Consumers are always drawn to enticing consumables that are also disposable after a single usage. As a result, paper straw producers offer printed paper straws with cute designs to attract more customers to the market.
Paper straws produced with 3/4 layers of paper wrapped around a mold and various additives are more durable than standard paper straws. Paper straws will most likely gain substantial popularity as a stable and sustainable alternative to plastic straws throughout the projection period. In the last two or three years, the global usage of plastic straws has expanded by leaps and bounds.
Market Dynamics
The rising Number of International Restaurants and Café Chains has escalated the India and GCC paper straws market share.
The rising Number of International Restaurants and Café Chains has escalated the India and GCC paper straws market share
The rise of the restaurant business paralleled the rise of India's vast middle class due to deregulation. The restaurant sector has grown due to rapid urbanization, more awareness of Western lifestyles, more women entering the workforce and increased disposable income.
In its research, the National Restaurant Association of India (NRAI) forecasted an exponential increase in kiosks and food courts in India. According to the NRAI, reduced rentals compared to restaurant space, stronger return on investment, brand penetration and new location opportunities are among the factors driving this rapid expansion.
Demand growth in the institutional sector appears promising, particularly in corporate environments. Furthermore, producers might target white areas for higher returns in the education and healthcare industries.
Restaurant delivery and take-out services are steadily increasing in popularity and are critical to maintaining earnings in the current economy. Under certain jurisdictions' restaurants are limiting dine-in options, which will continue to broaden offerings to provide pick-up, distribution and curbside pick-ups to increase revenue and manage the recession.
Customers benefit from the infrastructure and IT sector because of reduced wait times and improved ordering, which keeps them returning for more and propels the industry forward. For restaurants, infrastructure and IT development help them control expenses, minimize waste, maintain quality and boost their bottom line.
The high cost of paper straws restricts customers from frequent purchases and restricts the growth of the paper straws market
Due to stringent government rules and regulations regulating the use of plastic, various food chain restaurants, cafes and hotels prefer paper straws.
Paper straws are significantly more costly than plastic straws. On average, it costs roughly 2.5 cents to make a paper straw, compared to 0.5 cents for a plastic straw, which is five times more expensive. Although paper straws have not yet been fully normalized, they may eventually find their way into Dining Services' usual procurement process.
According to the Clean Water Action organization, paper straws cost between 5 and 12 cents per unit, whereas plastic straws cost less than 2 cents per unit. As a result of the high price of paper straws, people's purchasing behavior is less favorable.
However, due to rising environmental concerns and a surge in government adoption of strong plastic ban regulations, numerous countries have outlawed the use of plastic straws.
By notifying the Plastic Waste Management Amendment Rules, 2021, the Indian government has banned the manufacturing, sale and use of identified single-use plastic products such as plates, cups, straws, trays and polystyrene, effective July 1, 2022.
Because paper straws are unnecessary, most people are hesitant to purchase them because they are more expensive than plastic straws.
COVID-19 Impact Analysis
The market for paper straws has been harmed due to COVID-19, which saw several countries lockdown. Because paper straws are extensively used in hotels, bars, lounges, restaurants, cafes, movie theatres and motels, these food service businesses have been closed in numerous nations since April 2020. As a result, since May 2020, most paper straw sales have decreased. As per the National Restaurant Association of India, the whole food chain and restaurant operations in India were valued at US$ 57.70 billion in 2019 due to a large population.
Lockdowns in most of the world's countries have impacted the supply chain and demand. The tourism & hospitality industries took a hit during the epidemic, which is critical to the paper straw market growth. According to IMF 2020 report, by May 2020, airplane departures decreased by over 80% compared to May 2019, restaurant bookings decreased by over 90% and hotel bookings decreased by over 70%.
However, after the COVID-19 outbreak ended, the market for paper straws is projected to grow. Due to consumers' preference for environmentally friendly products, many businesses are transitioning to paper straws instead of plastic straws.
Paper straws, bamboo straws, glass straws and various alternatives to plastic straws are used. Such new initiatives are expected to emphasize environmentally friendly products, thereby increasing demand for paper straws in the market
Segment Analysis
The India and GCC paper straws market is segmented by material, product, end-user and region.
Virgin paper is considered a high-quality paper and showed significant demand in paper straw manufacturing due to its high durability, easy resistance to humidity and increased strength property
Based on material, the India and GCC paper straws market is segmented into virgin and recycled paper. The virgin paper segment holds a major share of the India and GCC paper straws market. Virgin paper has no recycled components and is created entirely from tree pulp or cotton. Virgin paper is also considered high-quality and shows significant demand in paper straw manufacturing.
Furthermore, Papers made from recycled pulp cannot be long-lasting compared to a virgin pulp because the fibers weaken and shorten throughout the recycling process. As a result, recycled pulp can only be used for a short period compared to virgin paper. So, paper manufacturers must use the virgin pulp to maintain the paper cycle.
Excellent characteristics such as high durability, easy resistance to humidity, increased strength property and longer-lasting paper quality coupled with less waste generation are the major factors adding value to virgin paper usage in the paper straw sector.
However, the fact that virgin paper manufacturing was burdening the environment and stripping the planet of its forest slowly started taking ground long back in the 1960s, leading to challenging market growth conditions for virgin papers in the paper straw market. Since then, growing adoption of sustainable materials offering zero damage to the environment has been the major hurdle for the growth of virgin paper in the paper straw market.
Geographical Analysis
Rising consumption of sweetened sugary beverages due to the growing population and urbanization in India has accelerated the market share for paper straws in the sugary beverage applications
India generates 9 million tons of plastic waste annually, based on its annual consumption of around 13 million tons. As the plastic waste problem grows, scientists, entrepreneurs and engineers have begun to develop ways to help reduce the growing percentage of plastic in India.
Some companies are working on ways to recycle plastics, while others started manufacturing safe and biodegradable products. Some businesses are starting to design environmentally friendly and high-quality items, creating immense opportunities for the paper straw to increase the Indian market during the forecast period.
Furthermore, India is the second-largest manufacturer of sugary beverages globally. In contrast, the per capita sale of sugary beverages in India is low compared to other countries such as China. Thus, the rising consumption of sweetened sugary beverages due to the growing population and urbanization in India has accelerated the market share for paper straws in sugary beverage applications.
In addition, in India, various restaurants have taken the initiative to reduce plastic straws and promote adopting paper straws over substitutes. For instance, in 2018, Mother India, a decent restaurant in the heart of Connaught Place, also ditched plastic straws in favor of paper straws. The eatery is going green to make a little difference by using the hashtag “#refusetheplasticstraw” to raise awareness about the growing negative effects of plastic straws.
In addition, the paper straw business requires a capital of a minimum of US$ 6,675-8,011 (5-6 lakhs), which includes the price of the shop, licensing, material, charge for machine purchasing and other charges. The government also offers loan services and subsidiaries to startup firms as the projects include manufacturing eco-friendly products.
Thus the low cost for the business and increasing government scheme towards promoting eco-friendly products is expected to escalate the paper straw market in India.
Competitive Landscape
The India and GCC paper straws market is highly competitive with local and global key players. The key players contributing to the market's growth are Straw Express LLP, Dinearth Eco-Friendly Tableware, Tirth Print Pack (p) Ltd, Saattvic Ecocare Products LLP, GREEN INDYA ENTERPRISES, ARTTEK SOLUTION, Gulf East, PARTY CAMEL GIFTS LLC, Hello Straw, SNH Packing General Trading L.L.C among others.
The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the growth of the India and GCC paper straws market.
• On October 31, 2019, SIG was the first to produce a U-shaped paper straw for carton packaging. SIG launched a U-shaped paper straw during Gulfood Manufacturing, collaborating with its joint venture partner SIG Combibloc Obeikan, after presenting the world's first straight paper straw for carton packaging in February 2019.
Hello Straw
Overview: Hello Straw produces high-quality paper straws at a reasonable price. The biodegradable paper straws are firm, watertight and liquid-resistant for at least 12 hours and are printed with food-safe bio-ink. Hello Straw spent three years researching and testing to develop the safest and most durable paper straws for the finest sipping experience. Its straws are BPA-free, 3-MCPD-free and MOSH- & MOAH-free.
The company produces and distributes 100% environmentally friendly paper straws to replace plastic straws with paper straws that exceed the most stringent European environmental standards. It has a daily manufacturing capacity of 6 million straws.
Product Portfolio: Paper Straws: Hello Straw specializes in producing and distributing environmentally friendly paper straws. It offers a diverse selection of paper straws for any business, including hotels, fast food, bars and terraces, caterers, event planners, food manufacturers and consumer retailers. From a minimum of 250 paper straws in a dispenser box, it manufactures various sizes, formats, colors, patterns and packaging solutions.
Key Development
• On June 09, 2021, Hello Straw launched a U-shape paper straw 2018, which is now used on juice and aseptic dairy packets by various global companies and supplies. Hello Straw has an innovation up its sleeve for June 2021: it will be the first to offer U-shape straws printed with child-friendly graphics, transforming the drab, white color of paper straws on packs.
Why Purchase the Report?
• Visualize the India and GCC Paper Straws market segmentation by material, product, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the tire cord market by analyzing trends and co-development deals.
• Excel data sheet with thousands of India and GCC Paper Straws market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players
The India and GCC Paper Straws market report would provide approximately 39 market data tables, 24 figures and 204 pages.
Target Audience 2022
• Service Providers/ Buyers
• Residential
• Research Laboratory
• Restaurant Business
• Energy & Utilities Companies
• Distributors

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