All Signs Point to… Uncertainty

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If you’ve been around for a while, you’ll know that each year we publish our State of the Industry Report. This year was no different. After 24 years of producing this report, we tend to have a good sense of what the results will show. But, with continued fallout from the COVID-19 pandemic and increased economic uncertainty, the industry is left without a clear grasp of what will happen in 2023. The 24th State of the Industry Report doesn’t reflect a unified outlook, but it does provide valuable insight of the current foodservice packaging industry.

We get this snapshot every year during the first quarter by sending out the State of the Industry survey to FPI members as well as non-members within the industry. This gives us the viewpoint of folks we don’t always hear from, and it provides non-member participants a chance to view the report. Most importantly, it tells us what the industry thinks when looking back at 2022 and ahead to 2023.

Only 60% of foodservice packaging manufacturers and suppliers experienced growth in volume, compared to 80% in the previous survey. In a large jump from 2021, 70% reported profit growth in 2022. But, in a show of continued uncertainty, only 50% of the industry expect volume expansion and 39% expect profit growth this year. Foodservice operators who responded saw increased sales, and were overwhelmingly optimistic that this trend would continue in 2023.

Sending another signal that the outlook for 2023 is uncertain, 37% of the North American manufacturers reported another year of planned corporate expansion primarily through expansion of current facilities, compared with 50% in 2022. In a continued decline from previous years, 60% of North American converter respondents plan to purchase machinery in 2023.

One thing that is certain is respondents’ view on the fast casual segment and grocery stores — they’re seen as the greatest areas for market expansion. This is due in part to continued use of take-out post-pandemic, along with inflation. Convenience stores and chain quick-service restaurants are also noted as opportunities for market expansion because of increased foodservice solutions and the ability to eat foods on-the-go.

Despite the uncertainty, there is room for optimism. People are going to continue to want their food on-the-go and our industry will continue to provide ways that make it easiest for that to happen.

We’d like to thank 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 think about participating next year. We realize it’s a time commitment on your end, but the survey is meaningful because of your responses. If you’d like more information or would like to be on our list for next year, let us know.

Talkin’ About Many Generations

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The foodservice packaging industry is convening in Santa Fe May 3-5 for our spring conference.  What will we be talking about?

Our conference highlights are:

  • John Maketa returns to present a demographic update. John last spoke to us in 2018 and we can’t wait to hear what he has to say now!  John combines insights related to the power of shifting demography with his professional experience leading high performing organizations. He also adds some relatable psychology around human behavior to create instant, lightbulb moments and inspire meaningful action.
  • Following that, our theme with demographics will continue with a presentation from Thom Pastor, representing the Association for Healthcare Foodservice. We are looking forward to hearing about trends in this segment of the industry.  What does the future hold?
  • Megan Lynberg of Datassential join us to continue our theme with sustainability trends among students and Gen Z. Megan has devoted her career to helping food and beverage companies make smarter, data-driven decisions without adding to their already full plates.  Her insight into this segment of the industry is one we are excited about!
  • We will also be updating members on legislative and regulatory issues that are affecting the industry. This critical session is not to be missed.

And of course, our spring conference features the always-popular golf tournament at Towa Golf Club.  Not a golfer?  No worries as the Santa Fe area is rich with many fascinating places to visit.

Our closing event at the Legal Tender Saloon will take us all back the old west.  More great networking and maybe even a little game of poker!

Can’t make this one?  Don’t worry as we’ll have another great one coming up this fall:  October 26-27 at the Kimpton Hotel Monaco in Pittsburgh, Pennsylvania.  We are already working on the program and will have updates available soon.

Want to see what companies are attending, as well as other details?  Check out our website:  https://fpi.org/conferences/spring-2023-conference-may-3-5/

We hope to see you in Santa Fe!

FRC Grants — Increasing Foam Polystyrene Recycling Throughout North America

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Our members are used to the many acronyms we use here at FPI. But, there’s one in particular that we hope more community members become aware of — FRC. The Foam Recycling Coalition was launched in 2014 under the FPI umbrella to support increased recycling of foodservice packaging made from foam polystyrene. This means ensuring that items like cups, egg cartons, foodservice containers and packaging materials are diverted from landfills and recycled into new products.

Providing education and technical resources on foam recycling was a good start. Yet, we also wanted to offer funding assistance to programs that are ready to start or strengthen their post-consumer foam recycling. We do this by awarding FRC grants throughout the U.S. and Canada with the 2023 program open through April 25, 2023.

Since 2015, the FRC has given over $1.2M in grant funding. More than 30 communities, facility operators, non-profits and solid waste authorities have received grants of up to $50,000 from FRC. This means more than 10 million more residents can recycle foam polystyrene than when we launched our first grant program.

While millions of residents seems like a large number of people who have access to foam polystyrene recycling, how can we tell the impact of our grants? Well, thanks to our previous grant recipients, we can tell exactly how much of an impact we’re having. If we look at the data from 2018 through 2022 it shows:

  • Total weight of foam recycled per year increased from 655,180 pounds to 1.4 million pounds.
  • Landfill space saved per year increased from 140 trailer loads to 302 trailer loads, assuming one trailer load holds roughly 3,816 cubic feet of foam.
  • Total market value of foam recycled per year more than doubled from $78,621 to $169,014.

To be eligible for an FRC grant, entities must engage in operating a material recovery facility, manage residential curbside recycling programs, or manage a drop-off or convenience site recycling program.

Previous awardees have used FRC funding to purchase equipment, including collection bins and foam densifiers, that help in the efficient collection and on-site material preparation prior to shipping. We don’t require a cash match, but additional costs by the grantee may be incurred for related items, such as site preparation, electrical infrastructure, freight, etc.

The grant program is made possible through contributions to FRC. Be sure to visit the FRC website to learn more about foam recycling, read about previous recipients or apply for a grant.