Irish coffee chain Bewley's is launching 100% recyclable and 100% compostable cups.

The company says it is part of its "ongoing commitment to sustainability".

Bewley's Grafton Street will be the first location to stock the 100% recyclable cups.

Research has shown coffee drinkers are actively looking for ways to use more sustainable products - with 65% saying they understand they will be paying a premium, as the environmental issue is so important.

Earlier this year, Bewley's also launched their compostable coffee capsules.

The new cups have a specially designed liner that breaks down in the recycling process - leaving 100% of the paper to be recycled cleanly.

The company says the cups and lids will be compatible with "regular recycling bins".

Image: Supplied to Newstalk.com

They are manufactured in Ireland and can be disposed of in the brown bin that is found in most homes and businesses, and are then fully broken down once taken to industrial composting.

Jason Doyle is managing director of Bewley's Food Service Ireland.

He said: "Now, more than ever, customers are looking for more sustainable options and we are delighted to be able to provide them with these new recyclable and compostable cups whenever they enjoy a Bewley's coffee on the go."

It comes after the Government said a so-called 'latte levy' would not be introduced on compostable cups.

However cups containing plastic will be taxed, as will all single-use plastic products.