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Why Is Starbucks Putting Cold Drinks In Paper Cups?

June 3, 2026

Starbucks is switching some cold drinks to paper cups to meet local plastic bans and reduce single-use plastic waste. This article explains the timeline, the technology, and what it means for foodservice buyers.

Why Did Starbucks Move Away From Plastic Cold Cups?

 Paper and plastic cold cups in a coffee shop illustrating Starbucks' packaging transition.

Starbucks began piloting fiber-based cold cups in select markets in early 2025. The rollout targets cities and regions where local governments restrict disposable plastic cups. The company framed this as part of its broader “A Better Cup for All” sustainability program.

Starbucks publicly committed to reducing virgin plastic use across its supply chain. The paper cold cup pilot is one visible step. The brand has stated it plans to expand the format as infrastructure allows.

What Forces Are Driving The Paper Cup Switch?

Environmental Pressure And Plastic Reduction Goals

Clear PET cold cups generate significant post-consumer plastic waste. Many brands face internal ESG targets that require measurable plastic reduction year over year.

Consumer Demand For Eco-Friendly Packaging

Younger consumers actively prefer brands that use paper or compostable formats. This shifts procurement decisions at QSR chains and beverage operators.

Regulatory Push From SUP Bans And EPR Laws

The EU Single-Use Plastics Directive and similar laws in California, Canada, and parts of Asia restrict or tax plastic cups. Paper cold cups bulk programs are growing as operators source compliant alternatives ahead of enforcement deadlines. 

Buyers sourcing disposable cold coffee cups with lids now face stricter documentation requirements in regulated markets.

How Do Paper Cold Cups Actually Work?

Comparison of paper and plastic cold cups for sustainability, compliance, and foodservice use.

Aqueous Coating Vs. PE Lining vs. PLA Lining

Standard paper cups use a polyethylene (PE) inner lining to resist moisture. Aqueous coatings are thinner and allow easier fiber separation during recycling. PLA linings are plant-based and industrially compostable, but require commercial composting facilities — which are not available in all areas. Starbucks uses a fiber-based board with a bioplastic liner, making the cup opaque rather than clear.

Insulation And Condensation Challenges

Cold drinks cause exterior condensation. Paper boards can soften without proper coating design. Multi-wall or treated paperboard formats reduce moisture absorption and extend hold time. This is a known engineering constraint when moving from PET to paper formats for iced beverages.

What Does This Mean For The Foodservice Industry?

The Starbucks pilot sends a clear signal to QSR chains, distributors, and packaging suppliers. Operators sourcing paper cold cups wholesale are already building alternative SKUs into their procurement plans. The shift also creates new challenges: compostability claims require third-party certification, and commercial composting infrastructure remains limited globally. Brands that position early with certified, compliant formats will hold a sourcing advantage.

Paper Cold Cups Vs. Plastic Cold Cups — Which Performs Better?

FactorPaper Cold CupsPlastic (PET/rPET) Cold Cups
RecyclabilityVaries by lining typeWidely recyclable (#1 PET)
CompostabilityPossible with PLA liningNot compostable
Drink VisibilityOpaqueClear
Condensation ResistanceModerate (design-dependent)High
Print / Branding OptionsGood — matte surfacesGood — clear or printed
Cost Per UnitTypically higherLower at volume
Consumer PerceptionPerceived as sustainablePerceived as wasteful
Regulatory ComplianceCompliant in SUP marketsRestricted in some regions

Is Paper The Future Of Cold Drink Cups?

Paper is growing as a format, but it is not a full replacement for plastic cold cups yet. Composting access, unit costs, and condensation remain real constraints. Regulatory pressure is accelerating adoption. 

SOWINTOP supports QSR chains, distributors, and beverage brands with compliant cup formats, certified manufacturing, and full OEM/ODM capability. Explore our full product collection to find the right cup format for your market.

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Frequently Asked Questions

Are Starbucks’ new paper cold cups compostable?

Yes, but only in commercial composting facilities. They are not designed for home composting.

Do paper cold cups work with lids?

Yes. Paper cold cups are compatible with flat and dome lids when properly matched.

Why are the new Starbucks paper cups opaque?

The fiber-based material and liner make the cup opaque, so the drink is not visible from the outside.

Can businesses buy paper cold cups in bulk?

Yes. Paper cold cups are available in bulk from packaging manufacturers and distributors.

Resources

1. U.S. Environmental Protection Agency — Sustainable Materials Management: https://www.epa.gov/smm

2. European Commission — Single-Use Plastics Directive: https://environment.ec.europa.eu/topics/plastics/single-use-plastics_en

3. Biodegradable Products Institute (BPI) — Compostability Certification: https://bpiworld.org

4. Ellen MacArthur Foundation — The New Plastics Economy: https://www.ellenmacarthurfoundation.org/the-new-plastics-economy

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