511 - Market Update Q3 2025

Key Takeaways – Q3 2025 Trade & Tariffs – The U.S. implemented sweeping tariffs on over 60 countries, disrupting global sourcing, driving material cost increases and supplier realignment. For ongoing updates and the latest information, please visit ACR News.

Packaging & Regulatory Trends – 15+ U.S. states and jurisdictions have enacted bans on polystyrene/expanded polystyrene food containers. Broader legislative momentum is growing for Extended Producer Responsibility (EPR) laws. Foodservice providers are shifting toward compostable, recyclable, and reusable packaging. ACR’s Strategic Response & Commitment – At ACR, our long-standing investments in a diversified global and North American supply network position us to respond effectively to evolving tariff policies and market disruptions. Since early 2025, we have significantly reduced our reliance on China-based manufacturing, which now accounts for only a single digit percentage of total sourcing. We are agile, collaborative, and reliable. By leveraging a flexible, collaborative supply chain supported by domestic manufacturing we continue to ensure reliable service, competitive pricing, and consistent product availability. Our commitment remains focused on delivering high-quality, innovative packaging solutions that align with sustainability goals and the growing demands of foodservice operations. We will continue to monitor trade developments closely and provide timely updates to support your business with confidence and clarity.

Ocean Freight & Supply Chain Disruptions – U.S.-bound ocean freight remains volatile with tight capacity, port congestion, labor tensions, and tariff-induced rerouting. Spot rates are high and unstable and strategic planning and flexibility are critical to minimize disruption. Blank sailings, Red Sea diversions, and inland routing are increasing as shippers seek agility. Global Sourcing Trends – U.S. companies are accelerating nearshoring to Mexico, India, and Southeast Asia to reduce dependency on China. Adoption of AI, digital tools, and ESG-aligned sourcing is rising to manage cost, speed, and risk. Procurement is evolving toward more tech-enabled, transparent, and sustainable models. Foodservice Industry Impacts – Restaurant operators face compounded pressure from tariffs, labor shortages, and inflation. Tariffs on food inputs (avocados, seafood, baked goods) are raising menu costs. Labor availability is tightening due to immigration policy changes. Despite challenges, the U.S. foodservice market remains strong with $5.2T projected value in 2025.

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Q3 2025 Market Update

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