Foodservice packaging industry optimistic about 2016: survey
Despite some familiar challenges, the foodservice packaging industry is confident about 2016, a new survey reveals.
The news comes from the Foodservice Packaging Institute’s 17th annual State of the Industry Survey. FPI’s survey included input from raw material and machinery suppliers, converters, and foodservice distributors and operators. A total of 65 respondents provided input from a range of companies, including raw material and machinery suppliers, converters, distributor,s and operators.
About 57 per cent of respondents experienced growth in volume, and nearly 60 percent reported profit growth in 2015. This year, more than three quarters of the industry expect volume expansion and half expect profit growth.
In another positive indication for the industry, 65 per cent of the North American manufacturers reported corporate expansion plans through construction of new facilities, expansion of current facilities, and mergers and acquisitions. More than half of North American converters also plan to purchase new machinery in 2016.
Respondents foresee that the greatest area for market expansion over the next five years is in the fast casual sector. This is due to the segment gaining the attention of the millennial generation and drawing customers from traditional quick- and full-service restaurants. Other areas for potential growth include convenience stores and quick serve restaurants.
Based on the responses from North American converters and suppliers, five common challenges facing the industry over the next few years are (in order of importance):
1. Margin compression.
2. State of the global economy.
3. Development of new products in response to customer demands.
4. Public perception of packaging or foodservice packaging as “waste.”
5. Environmental activism.
“Although challenges remain year over year, so does confidence in growth,” said Lynn Dyer, president of FPI, in a statement.