Growth of the Paper Straw Market Projected to Reach USD 11.2 Billion by 2034, with a Compound Annual Growth Rate (CAGR) of 15.7%

The paper straw market is experiencing significant growth, driven primarily by the global movement towards reducing plastic waste. This shift towards sustainability is evident in various sectors, with the paper straw market being no exception.

In 2024, straws within the diameter range of 0.196 - 0.25 inches accounted for the largest market share of 34.4%. North America dominated the regional market, holding a 35.6% share and a value of approximately USD 0.9 billion.

Virgin paper led the material segment with a 68.9% market share in 2024, but recycled paper is emerging as a sustainable alternative, gaining popularity due to its environmental benefits.

Retail sales of paper straws are expanding due to consumer demand for sustainable products, and this trend is expected to continue as environmental initiatives, shifting consumer preferences, and regulatory support drive growth.

The regions driving growth in paper-based sustainable packaging, including paper straws, are primarily the Asia Pacific, North America, and Europe. China and India, in particular, are showing rapid growth in paper packaging, with China exhibiting a CAGR of about 3.6% and India 3.4%.

The expected compound annual growth rate (CAGR) for paper-based sustainable packaging products, including straws, is around 4.8% to 5.1% up to 2034-2035. The market size for recycled paper packaging is expected to reach hundreds of billions USD by 2035, suggesting that the paper straw market, as a subset of this expanding eco-friendly sector, could grow within a comparable range.

The global paper straw market is projected to reach approximately USD 11.2 billion by 2034. B2B (Business-to-Business) sales channels dominated the market with a 68.2% share in 2024, but B2C (Business-to-Consumer) sales are growing, driven by online platforms and retail stores.

Companies are investing in research and development to improve the performance of paper straws, such as enhancing water resistance and durability. Printed paper straws are gaining popularity in the foodservice industry.

As industries seek sustainable alternatives to plastic, paper straws are expected to play a pivotal role in reducing environmental impact. Latin America and Middle East & Africa are witnessing gradual adoption of paper straws, influenced by global sustainability trends and local environmental policies.

The paper straw market is characterized by the presence of companies focusing on innovation, product quality, and sustainability. Continued innovation and adaptation to consumer needs will be crucial for companies aiming to capitalize on this growing market. The market size is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2025 to 2034.

Europe is experiencing rapid growth due to stringent environmental regulations and high consumer awareness regarding plastic pollution. The foodservice sector led the market with a 64.2% share in 2024. Strategic partnerships and collaborations are common in the paper straw market to expand market reach and capabilities.

As we move forward, the paper straw market is poised to play a significant role in the global effort to reduce plastic waste and promote sustainability. The ongoing commitment to innovation, quality, and environmental responsibility will undoubtedly propel the market towards even greater success.

Despite the growing market for paper straws driven by consumer demand for sustainable products, unfavorable weather conditions during harvesting seasons might impact the supply and quality of recycled paper, a sustainable alternative to virgin paper.
As environmental initiatives and sports events increasingly focus on reducing plastic waste, paper straws could gain prominence as eco-friendly catering options, thereby boosting their market growth in the coming years.