Abstract: Paper cup manufacture utilizing microencapsulated adhesive typically includes: (a) supplying a paperboard web to a coating line; (b) coating the web in the coating line with a liquid-resistant coating in a first predetermined pattern on a first side thereof corresponding to interior surfaces of sidewalls of paperboard cups formed from the paperboard blanks; (c) coating the web in the coating line with a microencapsulated adhesive in a second predetermined pattern corresponding to seams of paperboard cups formed from the paperboard blanks, the microencapsulated adhesive thereby being applied in common registry with the liquid-resistant coating in the coating line; and (d) cutting paperboard blanks from the web. The paperboard blanks are then (e) formed into the cup sidewall with the adhesive securing a seam.