Canadian Packaging

Annual Survey indicates sustained progress in foodservice packaging industry

Results reveal another year of stable volume and profit growth, expected to continue in 2018.


March 20, 2018
by Canadian Packaging staff

FALLS CHURCH, Va.—The Foodservice Packaging Institute’s 2018 State of the Industry Survey shows steady industry volume and profit growth in 2017. Survey respondents predict this trend will continue in 2018.

“Each year, we ask our members and non-members to share their insights on issues directly related to the foodservice packaging industry,” says Foodservice Packaging Institute (FPI) president Lynn Dyer. “Based on their feedback, the 2018 State of the Industry Survey projects another positive year for the foodservice packaging industry and our members.”

Results compiled for the survey included input from raw material and machinery suppliers, converters, and foodservice distributors and operators. Over 75 percent of foodservice packaging manufacturers and suppliers reported volume growth and more than 40 percent reported profit growth last year.

Respondents foresee that the greatest areas for market expansion are in the fast-casual and quick-service sectors. This is due to their continued popularity and ability to adapt to an evolving consumer with offerings such as home delivery, e-commerce solutions, and the desire for a quick food experience that’s not “fast food.”

Respondents also anticipate tapping into grocery stores because of improved food quality and meals-to-go—either ready-made or make-at-home kits—as these stores try to compete with fast-casual and quick-service restaurants.

More than 80 percent of the respondents expect volume expansion and nearly 65 percent expect profit growth in 2018. Foodservice operators who responded also saw increased sales and were optimistic that this trend would continue.

The positive indicators for growth in 2018 include over 60 percent of the North American manufacturers planning corporate expansion through construction of new facilities, expansion of current facilities, and mergers and acquisitions, and more than 80 percent of North American converters who plan to purchase machinery in 2018.

The survey results also identified five common challenges facing the industry based on the responses from North American converters and suppliers:

  1. Increasing raw material costs;
  2. Lack of qualified labor;
  3. Increasing government legislation/regulation;
  4. Public perception of packaging or foodservice packaging as “waste”;
  5. Recovery/end-of-life options for foodservice packaging.

“We love to see the continued growth and optimism within our industry. What these challenges remind us is that businesses still need materials and labor to be successful and to grow,” says Dyer.

FPI members and contributing participants received complete survey results. A complimentary executive summary of the report is available at www.fpi.org/resources.

For more information, contact FPI’s Natha Dempsey via e-mail at ndempsey@fpi.org.

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 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 www.FPI.org.






Category Captains 2018
Machinery