Foodservice Packaging Industry Shows Signs of Stabilization Amid Challenges in 2025

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According to the Foodservice Packaging Institute’s 2025 State of the Industry Report, the foodservice packaging industry is showing signs of stabilizing as it enters 2025. Survey responses were collected in Q1 2025, prior to many tariffs now facing the industry and while some uncertainties remain, survey results revealed cautious optimism among industry players. More than 45% of foodservice packaging manufacturers and suppliers reported growth in volume during 2024, though profit growth was less pronounced, with more than 80% seeing profits either worsen or stay the same compared to 2023.

“FPI’s annual State of the Industry Report, now in its 26th year, provides valuable insights into the issues shaping our industry’s future,” said Natha Dempsey, president of FPI. “The results indicate that the foodservice packaging industry is stabilizing and, despite ongoing challenges, we feel cautiously optimistic about 2025.”

Despite these challenges, the outlook for 2025 is brighter. Just over 50% of the industry predicts volume expansion, while nearly 90% expect profits to either grow or remain steady. Foodservice operators also reported stable or increased sales and expressed confidence that this positive trend will continue into 2025.

The survey highlights a stabilization in corporate expansion plans compared to recent years. Around 40% of North American manufacturer respondents plan corporate expansion in 2025, with nearly 55% of those expanding within current facilities. While slightly down from 60% in 2024, this reflects steady industry growth. Additionally, approximately 75% of North American converters intend to invest in new machinery next year.

Fast casual restaurants, convenience stores and supermarkets are seen as market segments with the biggest opportunity for growth. Respondents attribute this to meeting multiple consumer needs in one location while maintaining quality at a lower price point. Chain quick-service restaurants were also listed as promising areas of expansion.

“Convenience and value amid rising costs were noted as influences on growth opportunities,” said Dempsey. “Alternately, traditional business issues, such as government legislation/regulation and lack of qualified labor, remain at the forefront of industry concerns, along with increasing raw material costs.”

These challenges highlight ongoing constraints in the industry even as companies work toward stabilization and growth.

FPI members and contributing participants received complete survey results. A complimentary executive summary of the report is available at FPI.org/resource. For more information, contact FPI’s Ashley Elzinga at aelzinga@fpi.org.

Spartanburg County Introduces Paper Cup Recycling

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Over 125,000 households in Spartanburg County can now recycle their clean and empty paper cups at drop-off bins across the county. Spartanburg is the latest community in a broader regional initiative across the Carolinas to expand recycling programs by adding hot and cold paper cups to the list of accepted materials.

This expansion is made possible through a partnership with the Foodservice Packaging Institute (FPI), a leading industry association working to increase recovery of foodservice packaging. Over the past few years, FPI has worked closely with material recovery facilities (MRFs) and paper mills in the Carolinas to add this highly desirable fiber as an acceptable commodity for recycling programs. Spartanburg County is the first FPI community partner in South Carolina — and the fourth in the Carolinas — to join this initiative, marking a major step forward for regional sustainability efforts.

“We’re proud to expand our recycling program to include paper cups,” said Travis Brown, Director of Public Works for Spartanburg County. “This adds a valuable material to our recycling stream and provides residents with a simple way to reduce waste and contribute to a more sustainable community.”

Residents throughout the county are now able to recycle a wide range of foodservice items, including paper cups, plastic cups and containers, clean and empty pizza boxes, paper bags, paper containers such as sandwich and fry boxes, drink carriers, and aluminum foil food packaging.

The county will launch an educational campaign to raise awareness about the inclusion of paper cups in the local recycling program and inform residents of best practices. This includes emptying any liquid, tossing the lid in the trash, and recycling the clean and empty cup in one of the 17 recycling drop-off locations located throughout the county. Spartanburg County will kick off the campaign on April 16, and will feature a revamped recycling flyer, new signs at recycling drop-off locations, social media posts, video animations and digital ads.

“We’ve been working with communities across the Carolinas to expand paper cup recycling, and we’re excited to see Spartanburg County become the first in South Carolina to take this step,” said Natha Dempsey, president of the Foodservice Packaging Institute. “This partnership is an important milestone in our efforts to increase the recovery of foodservice packaging and make recycling more accessible to residents. Spartanburg County’s leadership in this initiative sets a great example for other communities to follow.”

Once collected, the paper cups are sent to various local recycling facilities for processing, including Sonoco Recycling in Spartanburg, Pratt Recycling in Duncan, and Canusa Hershman in Wellford. Once sorted and baled, the recovered paper will be sent to the Sonoco paper mill in Hartsville, where it will be turned into new products, such as tubes and cores for paper, textiles, specialty films, other wound products, and uncoated recycled paperboard.

Learn more about recycling in Spartanburg County at www.spartanburgcounty.org/203/What-and-Where-Can-I-Recycle.

2025 Application Period Opens for Foam Recycling Grants

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The Foodservice Packaging Institute’s Foam Recycling Coalition announced that its grant program is now open for 2025, offering a major opportunity to expand foam polystyrene recycling across the United States. Since its inception, the grant program has enabled over 13 million additional residents to recycle foam polystyrene like cups, egg cartons, takeout containers and packaging materials. Facility operators, non-profits and solid waste authorities are encouraged to apply for grants of up to $50,000 to help establish or enhance foam polystyrene recycling in their communities.

The 2025 application period is open now through April 15, 2025. Eligible entities must engage in operating a material recovery facility, manage residential curbside recycling programs, or manage a drop-off or convenience site recycling program.

“With the right collection system and densifying equipment, recycling foam can be both efficient and cost-effective,” said Natha Dempsey, president of the Foodservice Packaging Institute. “We are thrilled to provide grants to communities and organizations committed to expanding recycling efforts.”

Previous grant awardees used Foam Recycling Coalition funding to purchase equipment, including collection bins and foam densifiers, that aid in the efficient collection and on-site material preparation before shipping to processors and end markets. No cash match is required. However, additional costs by the grantee may be incurred for related items, such as site preparation, electrical infrastructure, freight, etc.

The Foam Recycling Coalition’s 2024 grant recipient, Conigliaro Industries, operates a large-scale material recovery facility in Framingham, Massachusetts, that already accepts

non-food-related polystyrene foam like packing peanuts, foam insulation, foam coolers and other foam packaging. Conigliaro used the Foam Recycling Coalition grant to purchase a thermal densifier, allowing the facility to expand its acceptable foam materials to include used foodservice polystyrene such as cups, plates, clamshells and school lunch trays.

“Conigliaro Industries already recycles 150 other materials including rigid plastics, foam plastics, paper, corrugated cardboard, rubber, metal, glass, and others,” said Gregory Conigliaro, president of Conigliaro. “With the help of the Foam Recycling Coalition, we purchased the first major piece of equipment that will help us add used foodservice polystyrene to our accepted materials list. We will build up this line to include equipment that will wash and dry the polystyrene foam before melting it for recycling, further expanding our recycling capabilities.”

Grants are made possible through contributions to the Foam Recycling Coalition, which focuses exclusively on increased recycling of post-consumer foam polystyrene. Its members include Americas Styrenics; Chick-fil-A; CKF Inc.; Dart Container Corp.; Dyne-A-Pak; Genpak; INEOS Styrolution America LLC; Pactiv Evergreen; and Republic Plastics.

Visit www.RecycleFoam.org/Grants to learn more about foam recycling, read about previous recipients and apply for a grant.