Navigating Change: Highlights from the 15th Annual Foodservice Packaging Trends Report

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The Foodservice Packaging Institute (FPI) recently released its 15th annual Trends Report, offering a comprehensive look at the current state of the industry. Despite facing challenges such as stagnation of orders and slower purchasing throughout the supply chain, the report also highlights positive shifts and emerging trends that shape the foodservice packaging landscape in 2023.

International Shipping and Equipment Timelines:

One notable aspect revealed in the report is the positive impact of decreased international shipping costs. Natha Dempsey, president of FPI, noted that this reduction has facilitated smoother import and export experiences for industry players. Additionally, timelines for equipment procurement have eased, albeit with some delays for in-demand machinery. As market dynamics evolve post-COVID, there is a notable uptick in the purchase of foodservice packaging through e-commerce channels.

Changing Dynamics in Office Environments:

The report underscores the rebound in demand for operators catering to office environments, even though full-time in-office attendance remains significantly below 2019 levels. With a large portion of the workforce embracing flexible or hybrid work arrangements, dayparts have become more fluid, catering to consumers’ preferences for meals and snacks whenever and wherever they want them.

Post-Pandemic Shifts and Inflation:

Operators are adapting to post-pandemic shifts, particularly in response to inflation. Consumers, feeling the financial pinch, are seeking value for money, leading to a surge in nostalgic meal deals that harken back to better days. Despite the challenges posed by inflation, service fees have become a significant burden, prompting a shift away from delivery toward takeout. This shift is so pronounced that operators are increasingly opting for smaller format, smaller footprint locations with an emphasis on drive-thru, to-go, and delivery services.

Extended Producer Responsibility (EPR) Discussions:

Policy considerations remain a top concern for industry respondents, with Extended Producer Responsibility (EPR) discussions taking center stage. Legislation, especially concerning EPR, emerged as the number one topic in the survey. As sustainability and environmental concerns continue to gain prominence, stakeholders are actively engaging in discussions to address the responsible management of packaging waste.

Conclusion:

For 15 years, the Trends Report has been a valuable resource for reflecting on the latest happenings in the foodservice packaging industry. The 2023 report not only highlights the challenges faced by the industry but also showcases the resilience and adaptability of the industry in navigating the evolving landscape. As the industry grapples with changes in consumer behavior, market dynamics, and regulatory considerations, staying informed and agile remains crucial for sustained success.

FPI members can access the complete 2023 Trends Report, while non-members can view an executive summary on FPI’s website. For further information, interested parties can contact Ashley Elzinga at aelzinga@fpi.org.

Post-Pandemic Trends and Recession Uncertainty Impact Foodservice Packaging Industry

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The 15th annual Trends Report from the Foodservice Packaging Institute (FPI) reveals the industry experienced a noticeable slowdown with the stagnation of orders and slower purchasing up and down the supply chain.

“Despite the uncertainty, the 2023 Trends Report did show bright spots. Respondents reported international shipping costs have gone down allowing for easier import and export experiences,” said Natha Dempsey, president of FPI.  “Another positive finding is that timelines for equipment have eased, although they can remain lengthy for in-demand machinery. And, as marketplace shifts continue post-COVID, respondents reported increased purchasing of foodservice packaging through e-commerce.”

Demand for operators that cater or service office environments has rebounded but reports show that full-time in-office attendance is still far below 2019 levels. With so much of the workforce in a flexible or hybrid state, dayparts have also become fluid, serving consumers meals or snacks when and where they want them.

Operators are reporting post-pandemic shifts in several areas, particularly with inflation. “Consumers have been hit hard in the wallet, leading them to look for the best bang for their buck.” said Dempsey.  “This has led to a rise in meal deals with a nostalgic twist — taking consumers back to better days, even if the price tag reflects current conditions.”

As inflation continues to impact consumers, service fees become a larger burden, leading to a shift away from delivery toward takeout. The survey also shows there’s been such a shift to takeout that operators are moving to smaller format, smaller footprint locations with an emphasis on drive-thru, to-go and delivery.

Policy continues to be top-of-mind for the respondents with Extended Producer Responsibility (EPR) discussions being most prevalent. Legislation, specifically EPR, was the number one topic brought up in the survey.

For 15 years, the Trends Report has provided FPI’s reflection on the latest industry happenings. This annual survey collects opinions from companies throughout the foodservice packaging supply chain, including raw material and machinery suppliers, packaging manufacturers, distributors and operators.

The first section of the report compiles direct comments and insights by industry respondents. The second section provides high-level trends in the foodservice packaging industry based on FPI staff analysis of member submissions, as well as FPI’s general industry observations.

The 2023 Trends Report is available to FPI members. Non-members may view an executive summary on FPI’s website. Please contact Ashley Elzinga at aelzinga@fpi.org for more information.