Results from the State of the Industry Report show 70% of respondents reported profit growth; 60% experienced growth in volume.
FALLS CHURCH, Va., April 4, 2023 /PRNewswire-PRWeb/ -- The Foodservice Packaging Institute's 2023 State of the Industry Report reveals that the industry is seeing a steady comeback since the slowdown of the pandemic, despite current economic uncertainty. Results show that 60% of foodservice packaging manufacturers and suppliers experienced growth in volume, which is down 20% compared with last year's large increase coming out of the pandemic. In a large jump from 31% in 2021, 70% reported profit growth in 2022.
"Based on the feedback from nearly 50 organizations, the 2023 State of the Industry Report predicts an optimistic, yet still unpredictable, year for the foodservice packaging industry as we continue to climb back from the effects of the pandemic," said Natha Dempsey, president of the Foodservice Packaging Institute. "On an encouraging note, foodservice operators who responded saw increased sales, and were overwhelmingly optimistic that this trend would continue in 2023."
The 24th State of the Industry Report includes input from raw material and machinery suppliers, converters, and foodservice distributors and operators. The survey looks at industry issues, such as changes to volume and profits; expansion and purchasing plans; and opportunities and challenges facing the industry, including the COVID-19 pandemic's ongoing effect.
Sending another signal that the outlook for 2023 is unclear, only 37% of the North American manufacturer respondents reported another year of corporate expansion plans primarily through expansion of current facilities compared with 50% in 2022. And, only a third plan to expand through building a new plant or merger/acquisition. In a slight decrease from previous years, 60% of North American converters plan to purchase machinery in 2023.
Respondents continue to view the fast casual segment as one of the greatest areas for market expansion, along with grocery stores. This is due in part to continued use of take-out post-pandemic, along with inflation. Convenience stores and chain quick-service restaurants are also noted as opportunities for market expansion because of increased foodservice solutions and the ability to eat foods on-the-go.
FPI members and contributing participants received complete survey results. A complimentary executive summary of the report is available on FPI's website. For more information, contact FPI's Ashley Elzinga at [email protected].
ABOUT FPI: Founded in 1933, the Foodservice Packaging Institute is the trade association for the foodservice packaging industry in North America. FPI promotes the value and benefits of foodservice packaging and plays an active role in advancing the recovery of FSP to support the circular economy. The association serves as the industry's leading authority to educate and influence stakeholders. Members include raw material and machinery suppliers, manufacturers, distributors and purchasers of foodservice packaging. For more information, visit http://www.FPI.org.
Media Contact
Natha Dempsey, Foodservice Packaging Institute, 571.255.2212, [email protected]
SOURCE Foodservice Packaging Institute
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