For produce packaging suppliers and shippers, inflation is a fact of life in 2021.
Industry leaders were asked by The Packer in a recent survey about the cost increases they have seen this year, and what may be on the horizon for 2022.
“Due to resin increases and transportation increases, we have seen some packaging costs rise upwards of 30%,” said Steve Greenfield, director of sales and marketing for NNZ Inc., Lawrenceville, Ga. “I don’t think this trend will reverse until the middle of 2022.”
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Packaging costs are on the rise across the board, said Chuck Sinks, president of sales and marketing for Yakima, Wash.-based Sage Fruit Co.
Everything from PLU stickers to bags, top pads and boxes has increased from 2
.5% to 15% this year, he said.
“Pricing will go into effect as new crop apples begin harvest,” he said. “Pricing will follow the market for 2022 – we aren’t experiencing anything that another shipper isn’t. We’re all in the same situation with increased packaging costs.”
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Corrugated cartons, labels and clamshell costs increased 6% to 10% this year, said Andrew Hare, co-founder and general manager of Charleston, S.C.-based Vertical Roots.
“Hopefully, we will continue to see manufacturing return to 100% production and provide an increase in supply that should ease any further rise in costs.”
Packaging costs increased on average about 7% in 2021, said John Paap, manager at Jac. Vandenberg Inc., Tarrytown, N.Y., but it is difficult to predict what will be ahead for 2022.
Some in the industry said more inflation could be ahead for 2022.
“We anticipate packaging costs to increase (about) 30% in 2022,” said Jeff Watkin, director of marketing for Sev-Rend, Collinsville, Ill.
