September 2025 Blow Molding Blog
Looking for Blow Molding Consulting? Check out our Team. Click here.
September 2, 2025
Tariffs Drive Packaging Shifts in the U.S. Food and Beverage Industry
Tariffs Drive Packaging Shifts in the U.S. Food and Beverage Industry
Rising tariffs on imported steel and aluminum are reshaping the packaging strategies of America’s food and beverage leaders. Once steady inputs, these metals have seen tariffs surge from 10% to 25%, and now 50%, creating mounting cost pressures for brands and consumers alike. With roughly half of U.S. aluminum imported and three-quarters of domestic steel already committed, the strain on supply is profound.
Industry leaders, including PepsiCo, Coca-Cola, Conagra Brands, Kraft Heinz, and Campbell’s, are warning that these tariffs jeopardize the U.S. food supply chain and “put our nation’s food security at risk.” According to the Can Manufacturers Institute (CMI), doubling tariffs will inflate canned food prices and open the door for foreign competitors to undercut U.S. producers.
The response from major companies underscores the gravity of the challenge. Coca-Cola’s CEO, James Quincey, has openly discussed shifting more packaging from aluminum cans into PET plastic bottles to maintain affordability. PepsiCo has also pointed to higher supply chain costs from tariffs, while Conagra, Kraft Heinz, and Campbell’s are balancing targeted price increases with efforts to reduce costs. Smaller producers, like Pacific Coast, face even greater strain, projecting tens of millions in added costs passed along to customers.
With brands weighing scaled-back operations, alternative sourcing, or bankruptcy filings like Del Monte’s, one solution is rising to the forefront: plastics. From PET bottles to aseptic packaging, the shift away from aluminum represents not only cost control but also a strategic pivot that could redefine the packaging landscape in America’s food and beverage sector. Learn more here.
Industry leaders, including PepsiCo, Coca-Cola, Conagra Brands, Kraft Heinz, and Campbell’s, are warning that these tariffs jeopardize the U.S. food supply chain and “put our nation’s food security at risk.” According to the Can Manufacturers Institute (CMI), doubling tariffs will inflate canned food prices and open the door for foreign competitors to undercut U.S. producers.
The response from major companies underscores the gravity of the challenge. Coca-Cola’s CEO, James Quincey, has openly discussed shifting more packaging from aluminum cans into PET plastic bottles to maintain affordability. PepsiCo has also pointed to higher supply chain costs from tariffs, while Conagra, Kraft Heinz, and Campbell’s are balancing targeted price increases with efforts to reduce costs. Smaller producers, like Pacific Coast, face even greater strain, projecting tens of millions in added costs passed along to customers.
With brands weighing scaled-back operations, alternative sourcing, or bankruptcy filings like Del Monte’s, one solution is rising to the forefront: plastics. From PET bottles to aseptic packaging, the shift away from aluminum represents not only cost control but also a strategic pivot that could redefine the packaging landscape in America’s food and beverage sector. Learn more here.
© Copyright BHC Associates, Inc., 2020 - 2025. All rights reserved.
