Australia Paper Cups Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory paper cups market dominated the market in 2024 and is projected to grow at a CAGR of 5.4% over the forecast period.
• By wall type, the triple wall segment is projected to witness a CAGR of 5.7% over the forecast period.
• By cups type, cold paper cups are expected to register 5.3% CAGR over the forecast period due to uses for serving chilled drinks like soft drinks, smoothies, milkshakes, and juices.

Market Size & Forecast:

• Market Size in 2024: AUD 295.50 million
• Projected Market Size in 2034: AUD 472.25 million
• CAGR from 2025-2034: 4.80%
• Fastest-Growing Regional Market: Australian Capital Territory

Australia’s fast-paced, on-the-go lifestyle significantly drives the demand for disposable paper cups. With urban populations growing and workdays becoming busier, consumers increasingly rely on convenient takeaway options for their daily coffee and beverages. Meanwhile, the rapid growth of food delivery and takeaway services, accelerated by technological advances and pandemic-driven habits has further fueled the need for reliable, single-use cups that ensure beverage quality and hygiene.

Innovations in water based and bio coatings for enhancing durability, leak resistance, and recyclability are driving the growth of the Australia paper cups market. In April 2025, Piazza D’Oro introduced Aqueous Lined BioCups, certified under Australian Standard AS 5810, in partnership with BioPak. These cups use a water-based dispersion coating instead of traditional plastic or PLA.  Such technological progress, including grease-resistant and microwave-safe designs is making paper cups more functional and versatile for various foodservice needs.

Australia Paper Cups Market Report Summary

Description

Value

Base Year

2024

Historical Period

2018-2024

Forecast Period

2025-2034

Market Size 2024

295.50

Market Size 2034

472.25

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

4.80%

CAGR 2025-2034 - Market by Region

Australian Capital Territory

5.4%

CAGR 2025-2034 - Market by Region

Western Australia

5.2%

CAGR 2025-2034 - Market by Cups Type

Cold Paper Cups

5.3%

CAGR 2025-2034 - Market by Wall Type

Triple Wall

5.7%

2024 Market Share by Region

Queensland

20.2%

Key Trends and Recent Developments

March 2025

Huskee launched “Borrow by Huskee,” a turnkey reusable cup system for venues and events across Australia. This free program helps in promoting sustainability by reducing single-use waste and encouraging a circular, eco-friendly beverage experience in cafes and events.

February 2025

Simply Cups, operated by Closed Loop Environmental Solutions, collected and recycled 50 million paper cups across Australia, diverting them from landfill. This milestone reflects widespread community participation and a vast network of over 1,500 collection points.

February 2024

APCO, through its Australasian Recycling Label (ARL) program, partnered with Simply Cups to introduce a new “Drop Off Only” logo on qualifying paper cups. This on-pack label guides consumers to recycle their cups via drop off at over 1,500 collection points nationwide.

August 2022

Our Kinds commenced a national rollout after a successful WA pilot. Active in Sydney’s bRU Coffee and 20 cafés across Perth and Fremantle, it replaces single use cups with preloved, QR scanned op shop cups, diverting over 51,000 cups and lids from landfill.

Investment & Innovation Opportunities

The Australia paper cups industry value is growing with increased investments in eco‑coating technologies. These include lignin-based waterproofing plus opportunities in automation, AI integration, and partnerships with the foodservice industry to develop advanced solutions. Emerging local startups and research & development initiatives are also accelerating innovation, positioning Australia as a regional leader in sustainable cup manufacturing.

Recycling & Waste Infrastructure Expansion

Australia is significantly enhancing its recycling infrastructure to meet the growing demand for sustainable waste solutions. This includes new and upgraded facilities capable of processing polyethylene-lined paper cups. In August 2025, The Soft Plastics Stewardship of Australia unveiled a major new recycling initiative targeting hard-to-recycle soft plastics. These improvements have made it easier and more economical to process paper cups with sustainable linings.

Rise in Sustainable Packaging Demand

Sustainability is a major driver in the Australia paper cups market. Consumers and businesses are increasingly aware of plastic pollution and climate change. As per the Australian Marine Conservation Society, nearly 145,000 tons of plastic enters the Australian environment each year. As a result, there is growing demand for eco-friendly alternatives to plastic, such as biodegradable and compostable paper cups.

Government Regulations on Single-Use Plastics

Australia has implemented strict regulations aimed at reducing single-use plastics, which is significantly benefiting the paper cup industry. States like New South Wales, Queensland, and South Australia have rolled out bans or restrictions on plastic straws, cutlery, and cups. These legislative moves have prompted businesses to shift towards compliant alternatives, including paper-based cups. The federal government's National Plastics Plan also supports these efforts.

Increasing Urbanization and On-the-Go Consumption

Urban lifestyles have led to a surge in demand for convenient, on-the-go food and beverage solutions, adding to the Australia paper cups industry value. With Australians spending more time commuting, working remotely from cafes, or grabbing coffee while running errands, paper cups become a necessity. As per Macrotrends, Australia’s urban population peaked to 23,091,181 in 2023. Urban centers also exhibit high paper cup usage due to their dense population and vibrant café culture.

The EMR’s report titled “Australia Paper Cups Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Cups Type

• Hot Paper Cups
• Cold paper Cups

Key Insight: Hot paper cups are specifically designed to hold beverages including coffee, tea, and hot chocolate. In Australia, the popularity of takeaway coffee culture, especially in Melbourne and Sydney, is significantly driving the uptake for hot cups. Coffee chains, independent cafés, and food trucks are key consumers. The convenience, safety, and recyclability of these cups make them a staple in Australia’s booming foodservice industry.

Market Breakup by Wall Type

• Single Wall
• Double Wall
• Triple Wall

Key Insight: The single wall paper cups industry share in Australia is expanding as it is typically used for cold beverages or for hot drinks served with cup sleeves to prevent hand burns. They are cost-effective and lightweight, making them ideal for high-volume settings such as food courts, schools, and events. In Australia, many takeaway outlets still use single wall cups for short-distance consumption. To cater to these trends, in June 2024, BioPak launched Australia’s first single‑wall disposable cups lined with PHA, fully home‑compostable innovation.

Market Breakup by End Use

• Household
• Quick Service Restaurants (QSR)
• Others

Key Insight: In Australian households, paper cups, especially single-wall variants are widely used for convenience during parties, picnics, school events, or everyday use. Parents often choose paper cups for kids’ gatherings due to safety and ease of cleanup. With growing environmental awareness, many households now prefer compostable or recyclable options, such as BioPak’s aqueous-lined or kraft cups. Bulk-buying from supermarkets or online stores has also grown due to cost-efficiency.

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

Key Insight: The Australia paper cups market revenue is rising with supermarkets and hypermarkets serving as major retail points, especially single-wall options for home use and small businesses. These outlets offer variety in size, coating, and design from eco‑friendly, aqueous‑coated cups to branded custom options. For instance, Woolworths Group committed to eliminating virgin plastic packaging from its own-brand lines by 2025 and is trialing more recyclable and compostable alternatives.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Key Insight: New South Wales (NSW), particularly Sydney, is a dominant force in the Australia paper cups market. NSW implemented stringent regulations on single-use plastics, which has accelerated the adoption of sustainable alternatives. The NSW Environment Protection Authority reported a recycling rate of 66% in 2023–24, significantly higher than the national average, indicating strong infrastructure and consumer participation in recycling initiatives.

Australia Paper Cups Market Share

Cold Paper Cups to Drive the Market with Focus on Sustainability

The cold paper cups demand in Australia is booming are they are used for serving chilled drinks like soft drinks, smoothies, milkshakes, and juices. With the rise of health-focused juice bars and smoothie cafés in urban areas, cold cups are increasingly utilised. Sustainability is also influencing this segment, with many suppliers offering PLA-coated or recyclable cold cups to align with Australia’s waste reduction policies and consumer expectations. For instance, BioPak’s cold paper cups were the only ones sold in Western Australia with the single-use plastic bans coming into effect in October 2022.

Double Wall Cups to Drive the Market with Coffee Consumption

Double wall cups are commonly used for hot drinks in Australia’s café sector. Double wall cups reduce the need for separate sleeves and enhance grip, making them a preferred choice for premium branding as well. Many Australian coffee chains are shifting towards double wall cups made with recyclable or compostable materials in line with the country’s increasing ban on single-use plastics. In February 2024, Pakchain launched stylish and compostable double wall coffee cups for eco-friendly cafés.

The triple wall paper cups market in Australia is the most advanced in terms of insulation, combining three layers of material for superior heat retention and hand protection. These are typically used in high-end or specialty beverage services in Australia, such as gourmet coffee trucks, catering events, and upscale cafés. While more expensive, they are ideal for serving very hot liquids and for situations where beverages are consumed slowly, maintaining temperature for longer periods.

QSRs to Drive the Market with Regulatory Support

Quick service restaurants (QSRs) including McDonald's, Hungry Jack’s, and Boost Juice are major drivers of paper cup demand in Australia. With increasing regulatory pressure on plastic waste, QSRs have turned to compostable and recyclable cup solutions. In October 2022, McDonald’s Western Australia replaced plastic iced cups with paper-based ones, eliminating 140 tons of plastic annually. This segment benefits from high turnover, consistent volume needs, and a strong push toward aligning with national environmental sustainability targets.

Convenience Stores to Drive the Market with Innovations

Convenience stores, such as 7‑Eleven, OTR, NightOwl, and Ampol Foodary, as they impact the Australia paper cups market dynamics as they cater to self‑serve coffee, soft drinks, or smoothies. in October 2022, 7-Eleven Australia introduced its most sustainable coffee using certified compostable paper cups made from renewable materials with plant-based linings. With long operating hours and high foot traffic, stocking single‑wall cups allows quick replenishment, efficient customer service, and supports sustainability goals with recyclable, biodegradable options.

Online retail has become pivotal for paper cups, enabling both households and businesses to order bulk or customized single‑wall cups with delivery convenience. E-commerce platforms from specialist packaging websites to supermarket delivery services offer extensive assortments, comparison options, and quick restocking. Online channels support personalization and sustainable innovation, catering to omnichannel shoppers and businesses pursuing procurement efficiency and availability.

Australia Paper Cups Market Regional Analysis

CAGR 2025-2034 - Market by

Region

Australian Capital Territory

5.4%

Western Australia

5.2%

Victoria

4.7%

New South Wales

XX%

Queensland

XX%

Others

XX%

Victoria Leads the Market with Government Intervention

Victoria is experiencing rapid growth in the Australia paper cups market, driven by Melbourne's thriving hospitality sector and a strong emphasis on sustainability. In August 2022, the Federal and Victorian Governments co-invested USD 2 million to boost Victoria’s recycling and remanufacturing of plastic, paper, cardboard, and tires. This commitment to sustainability has spurred demand for eco-friendly paper-based packaging alternatives.

The Australian Capital Territory market is influenced by its environmental policies, shifting consumer preferences, and growth in the food and beverage industry. Strict regulations on single-use plastics have prompted businesses to adopt eco-friendly alternatives, including biodegradable and compostable paper cups. Increasing public awareness of sustainability and waste reduction further supports this transition. Additionally, the expansion of cafes, restaurants, and takeaway services across the region is driving consistent demand for convenient, environmentally responsible disposable packaging solutions.

Competitive Landscape

Key players in the market are adopting several strategic approaches to remain competitive and meet growing demand for sustainable packaging. One of the primary strategies is sustainability-driven innovation, with companies developing compostable, recyclable, and biodegradable paper cups using alternative coatings like PLA or water-based liners. Strategic partnerships with raw material suppliers, recycling firms, and composting facilities help strengthen supply chains and support circular economy goals.

Manufacturers in the Australia paper cups industry also invest in advanced printing and customization, offering branded and promotional cups for cafes, events, and corporate clients to enhance customer engagement. Expanding distribution networks through e-commerce platforms, wholesalers, and retail chains allows broader market reach, while product diversification caters to different customer needs. Larger players are also exploring vertical integration to control costs and quality across the production lifecycle.

The Paper Cup Company Pty. Ltd.

Founded in 1994 and headquartered in Melbourne, The Paper Cup Company Pty Ltd is known for its commitment to sustainability. The company has pioneered eco-friendly paper cups using biodegradable materials, catering to cafes and events nationwide with innovative packaging solutions.

Get Bio Pak Co., Ltd.

Established in 2008 and based in Thailand, Get Bio Pak Co., Ltd specializes in manufacturing compostable food packaging products. Renowned for plant-based innovations, the firm supplies Australia and global markets with sustainable paper cups and containers, focusing on reducing plastic waste via eco-friendly alternatives.

BioPak Pty Limited

BioPak Pty Limited, founded in 2005 and headquartered in Brisbane, is a prominent Australian company offering certified compostable packaging solutions. They are recognized for innovation in bio-based materials, providing a wide range of paper cups and food containers that support circular economy initiatives and reduce environmental impact.

Paper Cup World Pty Ltd

Paper Cup World Pty Ltd, established in 2003 with headquarters in Sydney, supplies a variety of disposable paper cups across Australia. The company emphasizes quality and eco-conscious products, integrating innovative printing technologies and sustainable materials to meet growing market demands.

Other key players in the Australia paper cups market report include MyPaperCups, The Cup Factory, GH Packaging, Oji Foodservice Packaging Solutions (AUS) Pty Ltd. and others.

Key Features of the Australia Paper Cups Market Report

• Comprehensive market size and forecast analysis from 2025 to 2034.
• Detailed segmentation by cups type, wall type, application, region, and distribution channel.
• Insights into latest industry trends, innovations, and sustainability regulations.
• Competitive landscape with profiles of leading manufacturers and new market entrants.
• Quantitative and qualitative analysis to support strategic business planning.
• Evaluation of market drivers, challenges, and emerging growth opportunities.

Why Choose Expert Market Research?

• Trusted for accurate, data-driven market intelligence across multiple sectors.
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