According to an annual survey conducted by the Foodservice Packaging Institute, foodservice packaging converters, raw material and machinery suppliers, foodservice distributors and operators expect sales growth this year.
As part of the survey, more than 80 FPI members, including members of FPI’s sister association, Pack2Go Europe, also shared their successes in 2013 and their concerns for the future that might hinder industry growth.
According to a news release, nearly 60 percent of foodservice packaging manufacturers and suppliers experienced growth in volume, and nearly 50 percent saw growth in profit last year. This year, two-thirds of the industry expects volume expansion and 60 percent anticipate profit growth.
More than 75 percent of foodservice operators predict sales to increase by year-end, although many reported that this past winter’s harsh weather played a role in reduced sales traffic in Q1.
Additionally, more than half of the North American and European manufacturers reported plans to grow their companies this year through construction of new facilities, expansion of current facilities and mergers and acquisitions.
When considering growth potential during the next five years, respondents expect market expansion in convenience stores, fast casual and quick service chain restaurants. Many believe the potential for growth is imminent because of consumer demand for immediacy, the release said.
North American and European converter and supplier respondents highlighted five common challenges facing the industry, including: