Graphic Packaging International seizes paper cup market amid economic challenges

USA – Graphic Packaging International (GPI) has solidified its dominance in the paper cup industry, producing about 30% of North America’s supply, according to CEO Mike Doss.

Speaking at the Jefferies Industrials Conference on September 3, 2025, Doss highlighted the company’s transformation since acquiring International Paper’s consumer packaging business in 2018. 

This move marked GPI’s entry into the food service sector, enabling it to become a leading player in sustainable paper cup solutions.

GPI has actively driven recycling initiatives, playing a key role in persuading the Recycled Materials Association to include paper cups in its material specifications list in 2025. 

This step has improved recycling acceptance, supporting the company’s efforts to replace plastic and foam cups with eco-friendly alternatives. 

Major brands like Chick-fil-A, McDonald’s, and Nissin Cup Noodles have adopted GPI’s paper cup solutions, reflecting growing demand for sustainable packaging despite economic pressures.

Doss noted that the past two years have seen significant business growth due to the shift away from plastic and foam cups. 

However, he acknowledged a challenging start to the third quarter of 2025, with volumes down 2% year-over-year through mid-August. 

“Affordability has been a problem a little longer than I anticipated,” Doss stated, emphasizing the need to adapt to cost-conscious consumer behavior. 

He explained that customers are reformulating products to meet new health regulations, such as the federal Make America Healthy Again initiative, which requires removing certain dyes. 

These changes, while costly, create opportunities for GPI as food companies redesign packaging.

In a recent development, GPI’s new US$1 billion recycled paperboard mill in Waco, Texas, set to open in late 2025, will process up to 15 million paper cups daily, enhancing the company’s ability to meet rising demand for sustainable materials. 

The facility will support the production of recycled paperboard for various packaging needs, further reducing reliance on virgin materials.

Doss also addressed challenges in the paperboard market, particularly in solid bleached sulfate, where excess capacity has limited pricing power for recycled and unbleached paperboard.

Additionally, GPI’s decision to phase out third-party pricing indexes like Fastmarkets RISI, starting in 2025, aims to increase pricing transparency. 

“Those who have made the move really like the transparency,” Doss said, noting the transition requires careful collaboration with customers.

Despite economic headwinds, GPI’s focus on innovation and sustainability continues to drive its leadership in the paper cup market, meeting consumer and regulatory demands for eco-friendly packaging solutions.

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