The production of compostable hot cups begins with sourcing raw materials. Manufacturers often rely on agricultural products like corn and bamboo, which are renewable and biodegradable. However, fluctuations in agricultural yields due to climate change can affect the availability and cost of these materials. This unpredictability poses a significant challenge for manufacturers who strive to maintain a steady supply of hot cups.

Once the raw materials are sourced, they undergo processing to create the product. This stage involves converting plant materials into bioplastics or coatings that provide the necessary barrier properties for hot beverages. While innovations in technology have improved the efficiency of this process, manufacturers still face hurdles related to production capacity and the need for specialized equipment. The production of compostable hot cups often requires investments in new machinery and training for workers, which can be a barrier for smaller companies.

After production, the distribution of compostable hot cups presents its own set of challenges. Many businesses, especially small cafes and restaurants, may not have access to reliable suppliers of these products. Additionally, the logistics of transporting compostable hot cups can be complicated by the need for temperature control and careful handling to prevent damage. As a result, some businesses may opt for cheaper, non-compostable alternatives, undermining the market for sustainable products.