US demand for cups and lids tipped to reach $10.6bn by 2020

Cups used for coffee and tea will see the fastest growth of any major packaging market, Freedonia's study suggested

Demand for cups and lids in the US is expected to grow 3.9% a year to hit $10.6bn (£8.2bn) in the next four years.

According to the Freedonia Group, a Cleveland-based research outfit, demand will be helped by the growing focus on speciality beverages among foodservice operators. 

Cups used for coffee and tea will see the fastest growth of any major packaging market, Freedonia’s study suggested, while and cups for dairy products will continue to show favourable increases from the popularity of premium yogurt.

Freedonia analyst Katie Wieser, said: “As it becomes more common to snack throughout the day rather than prepare meals, healthy foods that are pre-packaged and portable will continue to gain favour.” 

The report said material use has changed considerably over the past decade, primarily for environmental reasons, as a number of foodservice chains have transitioned away from polystyrene foam while some cities have introduced bans on its sale or use.

The study also investigated the wider use of clear plastic cups.