The More Things Change, The More They Stay… the Same?

Now in its 27th year, the annual State of the Industry Report showed results that demonstrate the foodservice packaging industry’s view of a market that’s working really hard to stabilize amid regulatory and legislative changes, with consumers closely watching what they spend and what provides them with the most value. Despite continued uncertainty, survey results show that industry players remain cautiously optimistic.

As in years past, we were able to peek inside the minds of survey participants during the first quarter, before folks get too far into the calendar year. The State of the Industry survey was sent to FPI members as well as non-members within the industry. This allows us to gain insights from folks we don’t always hear from, and it provides non-member participants a chance to view the report. But, the most important information it provides is what the industry thinks about 2026 while looking back at 2025.

The report highlights that the industry appears to be in line with the FPI staff, with some optimism, along with industry stabilization. More than 35% of foodservice packaging manufacturers and suppliers experienced growth in volume, compared to 45% in the previous survey. This is reflected in profit growth, with 65% worsening or staying the same in 2025 compared to 2024. Signaling a bit of optimism, 50% of the industry expect volume expansion while more than 85% expect profits to grow or remain the same. Foodservice operator respondents predominantly saw increased or flat sales and were optimistic that this trend would continue in 2026.

Additional signs of market stabilization are evident, with nearly 40% of North American manufacturers reporting another year of planned corporate expansion initiatives, most commonly through the expansion of existing facilities. This remains in line with 2025 survey results. Also similar to previous years, more than 70% of North American converter respondents plan to purchase machinery in 2026.

Convenience stores, long noted as an area of opportunity, are still seen by respondents as one of the greatest areas for market expansion, followed by the fast casual restaurants, chain quick service restaurants and supermarket/grocery store segments. Contributing factors include the convenience of meeting multiple needs in one location, combined with the increasing quality of foodservice options in these types of stores. Finding foodservice items at a lower price as cost-of-living expenses continue rising, also makes these good expansion opportunities.

New this year, nursing homes were noted frequently as an area of opportunity, due to an aging population. Regardless of market segment, convenience and value amid high costs were repeatedly mentioned as influences on growth opportunities.

Price clearly has an influence on purchasing decisions, and it’s not limited to consumers. Foodservice operators are also prioritizing cost-conscious choices, with operator respondents overwhelmingly identifying cost as the most important characteristic when selecting foodservice packaging, followed by performance and packaging made from recycled content.

It’s always encouraging to see the industry’s continued optimism and attempts at stabilization, despite ongoing changes. Resilience and adaptability have long defined our industry, and its continued ability to pursue growth and expansion amid significant challenges reflects the strength of those qualities.

Thank you to the organizations that participated in this year’s survey. If you haven’t participated before, but are eligible (raw material or machinery supplier, converter, foodservice operator or foodservice distributor), please consider participating next year. We recognize the time commitment required on your end, but the survey is meaningful because of your responses.

If you’d like more information or want to be included next year, please reach out to Ashley Elzinga.