by Jennifer Mapes-Christ
April 9, 2025
Tariffs will lead food and beverage companies to re-evaluate how they package products to balance cost, performance, and sustainability.
Global trade dynamics have radically shifted. Tariffs are a pivotal factor shaking up a wide range of industries, notably the food and packaging sectors. Perishable goods such as produce and seafood are particularly susceptible to the impact of tariffs — rapid stock turnovers make them vulnerable to immediate price fluctuations. Additionally, highly perishable goods can’t be easily stockpiled, limiting suppliers’ options for stabilizing prices.
While increases in grocery prices can be easily observed, a subtler shift is taking place in the packaging sector — one that’s forcing brand owners, retailers, and suppliers to reassess how they package, price, and position their products. The latest round of tariffs necessitates a strategic reassessment of packaging solutions to address both emerging challenges and opportunities.
The introduction of tariffs has led to increased costs for imported goods, directly impacting consumer prices. The result? More expensive products, narrower margins, and less consumer willingness to pay for anything but the core item.
Packaging sits right at the crossroads of tariff-induced volatility. It’s both a cost input and a value driver. But, under tariff pressure, its role becomes more complex. In the short term, brands are being pushed to rethink how packaging can mitigate the downstream effects of cost inflation. However, packaging can also see opportunities for gains as a critical tool to mitigate some of these challenges.
Investing in advanced packaging technologies that extend shelf life can be a game-changer. High-barrier films, modified atmosphere packaging (MAP), antimicrobial coatings, or intelligent packaging that tracks freshness can help reduce spoilage and make it more viable to stock up when prices dip — even for semi-perishables like bagged salads or fresh-cut fruit.
By prolonging shelf life, retailers can reduce the frequency of restocking, optimize inventory management, and reduce waste thus potentially offering consumers some amount of price stability. For consumers, that can mean less wasted food, also an economic win during a time of rising grocery bills.
However, there’s a catch. As product prices rise, consumers become more cost sensitive. That means there's less room in the budget for products featuring premium, value-added, or eco-friendly packaging unless it offers a clear return. For instance, advanced packaging offers clear benefits, but it often comes with higher production costs. Consumers, already facing increased prices, might be unwilling to absorb additional costs.
This necessitates a careful evaluation of packaging investments to ensure they align with consumer expectations and purchasing power. Sustainability, once a growing priority, may temporarily take a backseat as companies look for packaging that “gets the job done” at the lowest cost to limit what they need to pass along to customers.
Many companies may look to packaging to cut costs, for example, by redesigning to use thinner gauges or lighter weights to reduce material usage, reducing the amount of protective packaging, simplifying prints or specialty elements, or resizing packages to keep per unit prices down.
Nonetheless, opportunities exist for solutions that offer a clear cost-saving or waste-reducing benefit. Packaging that prevents damage, reduces returns, or extends shelf life — especially in high-value or highly perishable categories — can make a compelling economic case even in a price-sensitive environment.
To navigate the complexities introduced by tariffs, industry players should consider the following strategies:
By thoughtfully integrating these approaches, businesses can navigate the current tariff landscape effectively, leveraging packaging as a strategic asset to balance cost, performance, and sustainability in the food sector.
Explore the packaging market research reports on our website to access the latest data and insights. The Freedonia Group offers a wide selection of industry studies on food & beverage packaging, including packaging for eggs, meat, poultry, seafood, fresh produce, wine, beer, and more.
About the blogger: Jennifer Mapes Christ is a long-time analyst and research manager at The Freedonia Group and Packaged Facts. With more than 25 years of experience sizing markets, forecasting demand, and tracking trends, she has authored more than 90 studies, and her analysis has appeared in The Wall Street Journal, The Washington Post, The New York Times, and many other industry publications and media outlets.
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