Packaging Firms Squeezed as Consumers Tighten Belts

As of November 15th, 2025, packaging companies are grappling with the impact of recent consumer trends that have affected their earnings. According to industry executives, factors like the struggles in the beef industry and changes in consumer purchasing habits have driven these challenges.

Beef prices have skyrocketed by 51% since February 2020, leading consumers to curb their beef purchases. This has had a direct impact on packaging suppliers who serve the meat industry. Additionally, the suspension of Supplemental Nutrition Assistance Program (SNAP) benefits, which is now set to ease following the end of the government shutdown, had previously caused concern over muted consumer spending.

The consumer market has become increasingly bifurcated, with upper-income shoppers still spending but more carefully, while lower-income consumers continue to cut back on purchases as food prices rise. This has fueled a surge in private-label product sales, as consumers seek more cost-effective alternatives. Executives have noted that mass retail, superstores, and discount grocers are gaining market share from traditional grocers, further driving the growth of private-label offerings.

As a result, packaging companies have seen their sales volumes decline, with one executive reporting a 2% year-over-year drop in the third quarter. However, the packaging industry remains cautiously optimistic, as they continue to navigate these evolving consumer trends and adapt their strategies accordingly.