Findings from FPI's 2024 State of the Industry Report
demonstrate a market rebounding from economic insecurity and
cautious optimism.
FALLS
CHURCH, Va., May 9, 2024
/PRNewswire-PRWeb/ -- In the 2024 State of the Industry Report
released by the Foodservice Packaging Institute, industry findings
demonstrate a market rebounding from recent economic insecurity and
cautious optimism, despite the ongoing challenges posed by
inflation and economic uncertainties. The annual survey, which
assesses the perspectives of manufacturers, suppliers and
operators, uncovered that only 34% of respondents experienced
growth in volume, with more than 50% seeing a decline.
Our members are not just navigating through
uncertainty; they are finding pathways to growth and expansion,
showcasing the resilience and adaptability at the core of this
industry.
However, in a turn toward optimism, nearly 60% of the industry
stakeholders anticipate expansion in volume, and a promising 77%
expect profits to either grow or hold steady in 2024. This positive
outlook is further supported by foodservice operators, who reported
increased sales and a hopeful stance for the coming year.
"Despite the challenges of the past few years, it's encouraging
to see a wave of optimism coursing through the foodservice
packaging industry," said Natha
Dempsey, president of FPI. "Our members are not just
navigating through uncertainty; they are finding pathways to growth
and expansion, showcasing the resilience and adaptability at the
core of this industry."
The 25th State of the Industry Report also highlighted a shift
toward stabilization within the market, with nearly 40% of North
American manufacturers moving forward with corporate expansion
plans, a slight increase from the previous year. Expansion efforts
are primarily focused on enlarging current facilities, with less
than 40% considering new plants or mergers and acquisitions.
Findings identify chain quick-service and fast-casual
restaurants as primary areas for market expansion, attributed to
consumer preferences for convenience. This trend extends to grocery
and convenience stores, which are increasingly offering more
foodservice options.
Despite optimism, the industry faces ongoing challenges,
including government legislation, lack of qualified labor, and
concerns about the public perception of packaging as "waste." The
survey identifies these, alongside recovery/end-of-life options for
packaging and margin compression, as critical areas needing
attention.
"As we look to the future, it's clear that our industry's
capacity for innovation will play a pivotal role in addressing
these challenges," Dempsey said. "Collaboration and continued
dialogue among all stakeholders will be key to navigating the road
ahead, ensuring sustainability efforts and fostering growth."
FPI members and contributing participants received complete
survey results. A complimentary executive summary of the report is
available on FPI.org/resource. For more information, contact FPI's
Ashley Elzinga.
Media Contact
Natha Dempsey, Foodservice
Packaging insitute, 571.255.4212, ndempsey@fpi.org,
www.FPI.org
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SOURCE Foodservice Packaging insitute