CLEVELAND, Aug. 22, 2018 /PRNewswire/ — The acquisition of Aardvark Straws by Hoffmaster Group will meet a need for both firms and provide benefits to the burgeoning paper straw market.
Demand for paper straws is booming since the recent announcements of plastic straw reduction policies from companies and cities, favoring more sustainable alternatives. Aardvark Straws, the only US-based producer of paper straws has experienced difficulty in meeting the increased demand due to limited capacity.
The acquisition by Hoffmaster, a firm which currently holds about a 1.5% share of the US market for foodservice disposables according to Freedonia Group analysis, will provide the resources to help Aardvark fulfill the increased orders. For Hoffmaster, it will add a fast-growing product line to its already vast product offering.
“This deal with Hoffmaster will ensure that operators who want to swap to paper straws will have increased opportunities to do so,” reckons C. Vernon Henry, a foodservice packaging analyst at the Freedonia Group. The surge in demand suggests that the higher prices for paper straws aren’t deterring restaurants, according to Henry, but smaller, independent operators might consider paper straws an unaffordable luxury, especially in areas without bans in place.
More information about these companies and the growth opportunities in the foodservice disposables market can be found in Foodservice Single-Use Products in the US, by the Freedonia Group.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group