2009 Foodservice Packaging Survey Results

SOUR ECONOMY Dampens, but doesn’t Douse

Foodservice Packaging Industry Optimism

(March 20, 2009 -- Falls Church, Va.) Manufacturers and their raw material and machinery suppliers of single-use foodservice packaging in North America are cautiously optimistic about the industry, according to the Foodservice Packaging Institute (FPI) “Foodservice Packaging Industry Survey” released today. Although the percentage of those who remain optimistic is encouraging, the number is lower than recent years.

This annual survey, which collects information and opinions from foodservice packaging manufacturers and suppliers in North America and Europe, found that 42 percent of foodservice packaging manufacturers expected their sales volumes to be better this year than last. This is down from 73 percent in 2008. The survey also found that 58 percent of North American respondents expect their profits to be better than last year; down from 72 percent last year.

In Europe, just over 85 percent of foodservice packaging manufacturer respondents are expecting volumes and profits to be better than last year. The same percentage of respondents indicated they will be purchasing new equipment 2009.

Despite the challenges in the face of a global economic recession, respondents reported that they believe quick service restaurants will see strong growth in single-use packaging usage in the next five years, followed by grocery delis.

“I think what this year’s industry survey shows is that single-use foodservice packaging is somewhat recession-resistant,” said John Burke, president of FPI. “While people may not be eating out as often at some restaurant venues, they continue frequent venues where significant amounts of single-use packaging are used for take out and take home dining.”

Just over half of North American manufacturers responding said they plan to purchase new machinery in 2009 (with 25 percent planning to purchase used machinery). And just under half of the North American foodservice packaging manufacturers said they plan to expand their operations in 2009. Despite this, machinery suppliers, as well as raw material suppliers, expect 2009 to be the same or worse as last year in terms of volume and profit.

The foodservice packaging industry’s customers are more optimistic this year than they were in 2008. According to a similar survey sent to North American foodservice operators, just under half said they expect their sales to be better this year. This is an increase from 2008 when only one third of respondents indicated that they expect their sales to be better.

Of particular interest to the foodservice packaging industry is that 25 percent of the commercial operators responding to the survey indicated that takeout (i.e. drive thru or carryout) accounts for half of their foodservice sales. The majority of these operators foresee their takeout sales continuing to maintain the same level of sales this year as they did last year.

The survey found that the foodservice packaging industry and its customers see some challenges ahead with seven common issues that ranked in the top ten for the European and North American foodservice packaging industry respondents:

• Global economic recession (listed as the top challenge by all European and North American converters as well as North American machinery suppliers)

For more information, please contact Caron Mason, communications manager, by phone at (703) 538-2800 or e-mail at cmason@fpi.org.