Foodservice Packaging Industry Continues to Stabilize as FPI Releases 2026 State of the Industry Report

According to the Foodservice Packaging Institute’s 2026 State of the Industry Report, the foodservice packaging industry continues to show signs of stabilization as it moves through a year marked by regulatory change and ongoing uncertainty. Survey responses, collected in Q1 2026, revealed continued cautious optimism among industry players, with more than 35% of foodservice packaging manufacturers and suppliers reporting growth in volume, even as 34% reported volume losses. Profit growth remained constrained, with 65% saying profits worsened or stayed the same in 2025 compared to 2024.

“FPI’s annual State of the Industry Report provides a valuable snapshot of the pressures and opportunities shaping the foodservice packaging market,” said Natha Dempsey, president of FPI. “This year’s results point to a market that is continuing to stabilize, and despite ongoing uncertainty, the industry’s cautious optimism for 2026 remains unchanged from the previous year.”

The outlook for 2026 remains more positive than recent performance suggests. Half of the respondents expect volume expansion, while more than 85% anticipate profits will either grow or remain steady. Foodservice operators also largely reported increased or flat sales and expressed confidence that those trends will continue into 2026.

The survey also points to steady corporate investment across the industry. Nearly 40% of North American manufacturer respondents reported plans for corporate expansion in 2026, with 56% of those expanding through current facilities. In addition, more than 70% of North American converters said they plan to purchase machinery this year, consistent with results from prior surveys.

Convenience stores remain one of the top opportunities for market expansion, followed by fast casual restaurants, chain quick-service restaurants and supermarket or grocery store segments. Respondents pointed to the appeal of convenience, value and improving foodservice quality in these channels as key drivers of growth. For the first time, nursing homes were also frequently identified as an area of opportunity, reflecting demand tied to an aging population.

“It is clear that convenience and value continue to influence where growth opportunities exist,” said Dempsey. “At the same time, traditional business pressures such as government legislation, margin compression, rising raw material costs, and calls for changes to EPR and product stewardship remain central challenges for the industry.”

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.