The Year of the Letter “C”

This year might as well be brought to you by the letter “C”: confusion, consolidation, challenges, customization, convenience and cost.

While that might sound like an alphabet soup of industry buzzwords, these six “Cs” capture the current state of foodservice packaging. It’s a year marked by complexity, contradiction and near constant change — even more Cs.  This is what we learned from our most recent Trends Report.

Confusion reigns supreme when it comes to Extended Producer Responsibility (EPR). The patchwork of state programs and unclear definitions has created headaches for packaging producers, distributors and operators alike. With each state taking its own approach, even seasoned sustainability experts are struggling to keep up.

EPR isn’t the only challenge though. Respondents continue to feel the squeeze from tariffs, inflation and the rising costs of doing business. Balancing affordability for consumers with increasing regulatory and material costs has never been more difficult — especially as some consumers choose to dine out less altogether.

Mergers and acquisitions have accelerated across the foodservice packaging ecosystem. We’re seeing consolidation among suppliers, manufacturers and distributors, as companies seek scale, efficiency and expanded capabilities.

Even within individual organizations, we’re witnessing internal consolidation — streamlining product lines, reducing SKUs and focusing on core offerings. While some players double down on simplicity, others are pursuing differentiation through unique, customized packaging that helps operators deliver memorable “experiences” for their customers.

Rising costs and economic uncertainty are reshaping purchasing decisions across the supply chain. Value-based buying has returned in full force, with operators weighing sustainability goals against bottom-line realities.

Tariffs and inflation have added complexity to every step of production. The silver lining? Many companies are turning back toward domestic manufacturing to avoid import penalties and reduce supply chain risk — a trend that could help strengthen the industry in the long run.

As the market shifts, one truth remains: consumers still crave convenience. Even as budgets tighten, today’s consumers expect quick, easy and high-quality food experiences. That’s driving expansion in convenience store foodservice and grocery story meal kits, where operators are finding new ways to combine speed with satisfaction.

Generational differences in purchasing are having a greater influence on the industry, with younger consumers prioritizing experiences and customization over traditional dining. On the flip side, older generations may focus more on consistency and value. For operators, that means rethinking packaging as part of the experience itself.

There’s no one-size-fits-all solution for packaging today. EPR-driven mandates are rewriting the rules of engagement and aspirational sustainability goals have revolved into legal requirements. Fail to meet the requirements and organizations might not be able to sell your product into their marketplace.

Still, within the confusion and complexity lies opportunity for growth and differentiation. The key is adaptability or in keeping with the theme, changeability — how well we are able to navigate these “Cs” while embracing new trends and delivering value, innovation and experience to an evolving consumer base.

This is the year of the letter “C.” And, it’s shaping up to be a challenging yet defining chapter for the foodservice packaging industry.

FPI members can access the complete 2025 Trends Report on FPI’s website, while non-members can view an executive summary. For further information, interested parties can contact Ashley Elzinga.