According to the Foodservice Packaging Institute's 2025 State of the Industry Report, the foodservice packaging industry is showing signs of stabilizing.
FALLS CHURCH, Va., May 20, 2025 /PRNewswire-PRWeb/ -- According to the Foodservice Packaging Institute's 2025 State of the Industry Report, the foodservice packaging industry is showing signs of stabilizing as it enters 2025. Survey responses were collected in Q1 2025, prior to many tariffs now facing the industry and while some uncertainties remain, survey results revealed cautious optimism among industry players. More than 45% of foodservice packaging manufacturers and suppliers reported growth in volume during 2024, though profit growth was less pronounced, with more than 80% seeing profits either worsen or stay the same compared to 2023.
"FPI's annual State of the Industry Report, now in its 26th year, provides valuable insights into the issues shaping our industry's future," said Natha Dempsey, president of FPI. "The results indicate that the foodservice packaging industry is stabilizing and, despite ongoing challenges, we feel cautiously optimistic about 2025."
Despite these challenges, the outlook for 2025 is brighter. Just over 50% of the industry predicts volume expansion, while nearly 90% expect profits to either grow or remain steady. Foodservice operators also reported stable or increased sales and expressed confidence that this positive trend will continue into 2025.
The survey highlights a stabilization in corporate expansion plans compared to recent years. Around 40% of North American manufacturer respondents plan corporate expansion in 2025, with nearly 55% of those expanding within current facilities. While slightly down from 60% in 2024, this reflects steady industry growth. Additionally, approximately 75% of North American converters intend to invest in new machinery next year.
Fast casual restaurants, convenience stores and supermarkets are seen as market segments with the biggest opportunity for growth. Respondents attribute this to meeting multiple consumer needs in one location while maintaining quality at a lower price point. Chain quick-service restaurants were also listed as promising areas of expansion.
"Convenience and value amid rising costs were noted as influences on growth opportunities," said Dempsey. "Alternately, traditional business issues, such as government legislation/regulation and lack of qualified labor, remain at the forefront of industry concerns, along with increasing raw material costs."
These challenges highlight ongoing constraints in the industry even as companies work toward stabilization and growth.
FPI members and contributing participants received complete survey results. A complimentary executive summary of the report is available at FPI.org/resource. 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, 571.255.4212, [email protected], www.FPI.org
SOURCE Foodservice Packaging Institute
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