According to the Foodservice Packaging Institute’s (FPI) latest report, post-pandemic purchasing and recession fears are fueling uncertainty in the foodservice packaging industry.
FPI’s 15th Annual Trends Report surveyed the opinions of companies throughout the foodservice packaging supply chain, including raw material and machinery suppliers, packaging manufacturers, distributors and operators. This year’s report said that the industry is noticing a slowdown in orders and slower purchasing up and down the supply chain.
The news isn’t all bad, the report showed. Lower international shipping costs have made for easier importing and exporting, and timelines for the delivery of equipment have eased. And, as the marketplace has shifted post-pandemic, respondents to the survey reported increased purchasing of foodservice packaging through e-commerce.
The report said demand for operators that cater or serve office environments has rebounded, but reports show that full-time in-office attendance is still far below pre-pandemic levels. With so much of the workforce in a hybrid state, dayparts have become fluid, requiring operations to serve customers when and where they want them.
Additionally, operators told FPI that inflation has impacted consumer spending habits.
“Consumers have been hit hard in the wallet, leading them to look for the best bang for their buck,” Natha Dempsey, president of FPI, said. “This has led to a rise in meal deals with a nostalgic twist — taking consumers back to better days, even if the price tag reflects current conditions.”
Service fees have become a bigger burden to consumers due to inflation, the report said, leading to a shift away from delivery and toward takeout. The survey also found that operators are moving to smaller format, smaller footprint locations with an emphasis on drive-thru, to go and delivery.