Foodservice Packaging Industry Enters 2025 with Cautious Optimism

Where do things stand and where are they headed?

After a few somewhat turbulent years, it looks like the foodservice packaging industry is finally catching its breath. According to the Foodservice Packaging Institute’s 2025 State of the Industry Report, things are beginning to stabilize as we move into the new year. While challenges remain (because when don’t they?), the tone of the industry is shifting from survival mode to cautious optimism.

So, what’s really going on behind the numbers? Let’s dig in.

Volume is Up, But Profits Lag Behind

In 2024, over 45% of manufacturers and suppliers reported increased volume. That’s a good sign—it means more product is moving and demand is there. However, the boost in volume didn’t translate as strongly into profits. More than 80% of companies said their profits either worsened or stayed flat compared to 2023.

What’s going on here? Like many industries, foodservice packaging is feeling the squeeze from rising raw material costs, labor shortages, and—more recently—tariffs that weren’t even in effect when this survey was conducted in Q1 of 2025.

Still, the foundation looks stronger than it did a year ago.

Stabilization, Not Stagnation

“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.”

And that optimism seems to be shared across the board. Just over 50% of survey respondents expect their volume to grow in 2025. Even more encouraging: nearly 90% anticipate their profits will either improve or hold steady.

Foodservice operators echoed this sentiment, reporting stable or increased sales heading into 2025.

Investing in the Future—Just a Bit More Carefully

Corporate expansion plans appear to be leveling off, but not disappearing. About 40% of North American manufacturers plan to expand this year—mostly within existing facilities. That’s down from 60% in 2024, but it still indicates forward momentum.

Additionally, about 75% of converters say they’ll be investing in new machinery in 2025. So while companies may be cautious, they’re not standing still.

Where the Growth Is Happening

When asked which market segments showed the most promise, respondents pointed to:

• Fast casual restaurants
• Convenience stores
• Supermarkets
• Chain quick-service restaurants

The common thread? Convenience and value. Consumers are looking for places that can meet multiple needs at once—without breaking the bank. These channels are responding with flexible packaging solutions that deliver both.

Old Challenges, New Year

Of course, not everything is rosy. Longstanding concerns like government regulation, rising material costs, and labor shortages are still very much on the radar. As Ms. Dempsey put it, “Convenience and value amid rising costs were noted as influences on growth opportunities… [but] traditional business issues remain at the forefront.”

So, what’s the takeaway? The foodservice packaging industry is moving forward—maybe not at full speed, but with a more confident stride than it’s had in recent years. It’s a moment of recalibration, not retreat.