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FALLS CHURCH, VA. -- Food packaging manufacturers in North America and Europe are confident that sales volumes will improve, according to a new report from the Foodservice Packaging Institute (FPI).
According to FPI's most recent annual survey, 85 percent of food packaging manufacturers in North American expect volumes to go up, while three quarters in anticipate higher profits.
In Europe, just over half expect an improvement in volumes, even if less than half anticipate higher profits.
Most respondents indicated they will invest in machinery, with more than 70 percent saying they will purchase new models (as opposed to used models) this year. Most who plan to invest say they will buy new machines to increase market share and expand capacity.
When asked what common challenges the industry faces, the respondents listed increasing costs, margin suppression and public perception of packaging as waste.
"What's telling in this year's survey results is that although 'global economic recession or recovery' made the list of common challenges the last four years, it did not this year," said FPI President Lynn M Dyer. "When the economy is strong, restaurants and other eating and drinking establishments flourish — and that means the foodservice packaging industry does well. A brighter economic picture means we're likely to see industry expansion, new markets, product enhancement and innovation."