Foodservice Packaging Industry survey is optimistic about 2007.
Press Release Summary:
Annual survey of foodservice packaging manufacturers and suppliers found that 79% of responding North American manufacturers are optimistic about sales in 2007, with 84% planning to buy new machinery, as are 75% of those responding in Europe, with 67% planning on new purchases. Operators indicated they are most troubled by food safety, labor shortages, and nutritional concerns, and such issues as raw material costs and government regulations.
Original Press Release:
Survey Finds Foodservice Packaging Industry and Its Customers are Optimistic About 2007
(March 8, 2007 -- Falls Church, Va.) Nearly three quarters of manufacturers and suppliers of single-use foodservice packaging in North America said they expect their sales volumes to be better in 2007 than in 2006, according to the Foodservice & Packaging Institute, Inc. (FPI) "Foodservice Packaging Industry Survey" released today.
This annual survey, which collects information and opinions from foodservice packaging manufacturers and suppliers in North America and Europe, also found that 79 percent of the North American respondents expect their profits to be better than last year.
In another positive indication for the industry, 84 percent of North American manufacturers responding said they plan to purchase new machinery in 2007, and nearly half of the North American foodservice packaging manufacturers said they plan to expand their operations in 2007, mostly aimed at the foodservice segment of their business.
In Europe, 75 percent of foodservice packaging manufacturer respondents are expecting volumes to be better than last year, with half expecting profits to be better. They, too, will be purchasing new equipment, according to 67 percent of the respondents, and just over half of them plan to expand their operations in 2007.
The foodservice packaging industry's customers in North America are even more optimistic. According to a similar survey sent to North American foodservice operators, 94 percent of respondents indicated that they expect their sales to be better this year than last.
Of particular interest to the foodservice packaging industry is that the majority of the operators responding indicated that takeout (i.e. drive thru or carryout) accounts for over half of their foodservice sales, and 38 percent said they foresee their takeout sales to increase this year.
While optimism reigns, the foodservice packaging industry and its customers do see some challenges ahead. There were five common issues that ranked in the top ten for the European and North American foodservice packaging industry respondents: "increasing raw material costs," "margin compression," "development of new products in response to calls for sustainable packaging," "government regulations," and "mergers and acquisitions." Operators indicated they are most troubled by "food safety," "labor shortages" and "nutritional concerns."
For more information, please contact Lynn Dyer, director of research and communications, by phone at (703) 538-2800 or e-mail at ldyer@fpi.org.
The Foodservice & Packaging Institute Inc., headquartered in Falls Church, Va., is the leading authority on the foodservice packaging industry.
