PAPER CONE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

• Availability of alternative packaging solutions
• High production cost of paper cones 
• Complexities in recycling paper cones

Global Paper Cone Market- Drivers

• Rising demand from F&B industry: Rising demand for paper cones from the food and beverage (F&B) industry is a major factor driving the growth of the paper cone market. The F&B sector utilizes paper cones for packaging various food items like ice creams, cupcakes, candies, chocolates, and others. Increasing consumption of on-the-go and ready-to-eat foods leads to high demand for paper cones as a sustainable and convenient packaging solution. Various F&B brands are increasingly adopting paper cones for brand differentiation and enhancing consumer experience. The innovation in cone shapes, sizes, printing techniques further aids the adoption of paper cones in F&B applications. In July 2023, OCB, a prominent rolling paper brand, launched OCB brown rice cones, the only cones made with real rice fibers. These cones are part of the OCB nature collection, emphasizing sustainability and premium smoking experiences. OCB's commitment to high-quality ingredients and eco-conscious practices makes these extraordinary in the market.
• Increasing demand for sustainable packaging: Growing consumer inclination towards eco-friendly and sustainable packaging solutions boosts demand for paper cones. Paper cones are renewable, recyclable and biodegradable. Unlike plastic packaging, paper cones do not release any greenhouse gases during decomposition. The stringent regulations on single-use plastics have forced F&B companies to adopt eco-friendly paper packaging, and this is expected to drive the global paper cone market growth. Moreover, various brands are using paper cones for promoting their sustainability credentials.
• Rapid growth of online food delivery services: The rapid penetration of online food delivery services such as food delivery apps leads to rising adoption of paper cones. Paper cones allow secure transportation of food items mitigating any leakage or contamination issues. The flourishing online food delivery industry is expected to create lucrative sales opportunities for paper cone manufacturers. The growing consumer preference for convenient and ready-to-eat meal options coupled with expanding online and mobile food delivery services will continue to propel the market growth during the forecast period.
• Launch of innovative paper cone products: The introduction of innovative paper cone designs catering to changing consumer preferences is driving the global paper cone market growth. Manufacturers are developing advanced printing techniques to offer visually appealing and customizable cone designs. The launch of edible paper cones presents lucrative growth opportunities to leverage the clean-label and natural food trends. Some companies are also launching compostable and water-resistant paper cones made using organic materials. Such innovations will continue to boost product adoption across diverse end-use industries.

Global Paper Cone Market- Restraints

• Availability of alternative packaging solutions: Paper cones face stiff competition from alternative packaging solutions like plastic cones, foil wrappers, boxes, bags and others. Plastic cones are moisture-resistant and offer high durability. Shifting consumer preference towards plastic packaging in some applications may hinder the paper cone market growth. However, the popularity of paper cones can be attributed to rising anti-plastic sentiment among consumers and brands.
• High production cost of paper cones: The complex manufacturing process involving pulping, bleaching, shaping, drying and printing results in high production costs of paper cones. The additional food-grade coatings further increase costs. This makes paper cones more expensive than plastic cones. Manufacturers need high investments in R&D and advanced machineries to develop affordable paper cone solutions. This can restrict adoption among price-sensitive consumer.
• Complexities in recycling paper cones: The presence of mixed materials like plastic coatings, dyes, adhesives on printed paper cones creates certain challenges in recycling. Sorting and separating different materials make the recycling process complex. This can result in higher rates of paper cone wastage diminishing the sustainability quotient. Market players need to ensure easy recyclability by minimizing material mixing while catering to aesthetic needs.

Global Paper Cone Market- Opportunities

• Untapped markets in developing economies: The emerging economies in Asia Pacific, Latin America, and Middle East & Africa offer lucrative expansion opportunities for paper cone manufacturers. These regions exhibit high growth potential attributed to the expanding F&B and e-commerce sectors. Rising internet penetration and digitalization in developing countries are expected to promote retail and online food delivery services, and boosts demand for paper packaging solutions like cones. Companies are establishing manufacturing facilities in emerging markets to cater to the escalating paper cone demand and gain a competitive edge.
• Rising adoption in emerging application areas: The widening application scope of paper cones across industries such as textiles, agriculture, construction presents remunerative opportunities for manufacturers. Paper cones are gaining traction as cost-effective and sustainable packaging solutions for seeds, fertilizers, textile cones, interior designing cones, party props, and others. Market players are also targeting the retail and e-commerce spaces to boost product adoption for packaging various items. The development of customized cone designs aligned with application requirements will enable manufacturers to expand their customer base and increase sales.
• Development of eco-friendly paper cone solutions: Sustainability is a crucial factor influencing packaging purchase decisions. Consumers are demanding eco-friendly paper packaging solutions. Manufacturers are investing in R&D activities to launch paper cones manufactured using renewable materials such as bamboo fiber Market players can also leverage technologies like digital printing to provide fully-recyclable paper cones without any mixed material barriers. The introduction of such green solutions will help companies to gain a competitive edge in the market.
• Strategic partnerships and acquisitions: Strategic collaborations, mergers, and acquisitions allow paper cone manufacturers to improve production capabilities, expand product portfolio, enter new markets and enhance distribution network. Acquiring emerging start-ups specializing in sustainable packaging provides access to advanced technologies for developing eco-friendly paper cones. Partnerships with e-commerce and online food delivery platforms can help to generate additional revenue streams. Companies can also collaborate with leading F&B brands to develop customized cone designs and printing techniques, catering to evolving consumer preferences.