The Need for Speed

The need for speed. No, we’re not talking about Top Gun.

If 2023 was marked by a noticeable slowdown, 2024 has been about the need for speed. The pressures weighing on the foodservice packaging industry are seen in several ways when examining this year’s trends.

These pressures highlight the need to progress. And faster. This is all evident in FPI’s 2024 Trends Report.

Sustainability and the principles of sustainable packaging aren’t new, and haven’t been a “trend” in over a decade. But, this year there’s a growing sense of urgency around packaging sustainability and the justification or rationalization of choices made in this space has become a trend. No longer a “nice to have” or a “good for the environment”  option, sustainable packaging has become a required, if not regulated, part of doing business.

Companies that set 2025 packaging goals are now feeling the pressure and re-evaluating plans. It’s not a simple process to transition entire systems with numerous stakeholders and considerations. It’s complex and time-consuming, demanding careful planning and realistic timelines — not schedules accelerated by new legislation with increased pressure.

The pressure’s not all bad, particularly in the drive toward innovation. New, innovative materials and products help sustainability goals look new and fresh. Some notable changes include new coatings for fiber items that can be reheated in the container later and shifting away from color additives in favor of “natural” colored resin to help with end-of-life recyclability. Due to customer commitments and regulatory requirements, responses also show that the use of post-consumer recycled content continues to grow. We don’t expect this trend to slow down any time soon.

Legislative and regulatory changes are drawing attention toward packaging materials. As extended producer responsibility laws are implemented in several U.S. states, both foodservice operators and packaging manufacturers are contending with confusing — and often conflicting — approaches and targets. It may not be widespread but we are seeing a greater focus on reusable items for dining at restaurants, event venues and school foodservice programs which may be tied to regulatory pressures and customer demand.

Adding to the pressure is the increased complexity of packaging choices and their potential consequences. Packaging has to perform at an acceptable price point in a down market so what attributes become most important? Do companies switch portfolios from paper to plastics, plastics to paper, look at compostability, recyclability? All of the above?

New this year is the number of mentions related to increased imports. It’s clear this is a topic on the minds of much of the U.S. and Canadian marketplace — from finished goods across multiple substrates to a rise in imported machinery. A rise in imports has increased pressure on the industry to compete with imported products and equipment and the rise in imported machinery has led to anecdotes of lower costs and shorter lead times for domestic equipment.

Responses also show the continued trend of mergers, acquisitions and consolidation leading to tighter competition in the industry. More pressure.

On the flip side, automation in manufacturing has helped increase production and offset labor costs. Foodservice operators have embraced automation to combat labor shortages and work within smaller stores that only serve via drive-thru and delivery. This automation has even expanded into vending machines at airports and train stations.

Showing signs of policy and recovery aligning, respondents reported that sustainable options are still in demand from operators — even when economic factors are increasing prices. Reusable packaging is a focus for some and operator respondents are now “taking a second look” at the end-of-life pathway for packaging products, knowing that recycling and composting each have their own challenges and opportunities.

It’s clear the foodservice packaging industry will continue to face pressure but we view these challenges as opportunities to drive progress — and fast.

Now in its 16th year, our Trends Report is a snapshot into what the industry is seeing. Each year we collect opinions from companies throughout the foodservice packaging supply chain, including raw material and machinery suppliers, packaging manufacturers, distributors and operators. We take those insights and direct comments and compile them into a lengthy report. Our analysis is based on those submissions, as well as our own general industry observations.