Karat Packaging Inc.

Karat Packaging Inc. makes and distributes disposable foodservice packaging and related supplies for restaurants, foodservice operators, and resellers. Its portfolio spans cups, lids, containers, cutlery, straws, gloves, janitorial items, and specialty beverage ingredients, with a growing emphasis on sustainable and compostable products under brands such as Karat Earth®. The company combines import sourcing with selected U.S. manufacturing and a direct distribution network to serve customers quickly and with customized solutions.

11,2 %

36,8 %

6,7 %

+10,7 %

2.30

1.13

— Karat Packaging Inc.
%
Disposable foodservice packaging55% Single-use containers, cups, lids, boxes, bags and tableware used in take-out and dine-out service.
Sustainable and compostable products20% Biopolymer-based and other eco-friendly packaging sold to customers seeking greener alternatives.
Foodservice supplies and consumables15% Cutlery, straws, gloves, janitorial supplies and related operating items for foodservice businesses.
Specialty beverage ingredients5% Ingredients and accessories used in beverage concepts such as boba and cold drinks.
Custom services and logistics5% New product development, printing, e-commerce fulfillment and distribution services.

Karat sells primarily to foodservice operators that need recurring, high-volume packaging and supply purchases...

  • Restaurant chainsprimary

    Buy cups, containers, lids and related supplies in volume for consistent brand presentation and reliable supply.

  • Regional and independent foodservice operatorsprimary

    Buy disposable packaging and operating supplies to support take-out, delivery and daily service needs.

  • Restaurant supply distributorssecondary

    Buy Karat products for resale into a broad base of foodservice establishments.

  • E-commerce and marketplace customersemerging

    Buy online for convenience, broader assortment and faster procurement, including small businesses and consumers.

Karat’s business is concentrated in the United States, where it operates a nationwide distribution network and multiple...

  • •Revenue and operations are primarily U.S.-based
  • •Distribution centers are placed near major metro areas for faster delivery
  • •Manufacturing capability exists in selected U.S. facilities
  • •Global sourcing supports product availability and cost flexibility
  • •China exposure is being reduced as tariff uncertainty rises

Karat is shifting toward a more resilient supply chain by diversifying vendors, reducing China dependence and...

01
Supply-chain diversificationshort-term

Reduces tariff exposure, import disruption risk and margin volatility.

02
E-commerce growthmedium-term

Supports higher-margin sales and broadens reach into small business and consumer channels.

03
Sustainable product expansionmedium-term

Matches customer demand and regulatory pressure for recyclable and compostable packaging.

Karat is exposed to tariff changes, import disruption and freight cost swings because much of its product mix is...

high

Tariff and trade policy volatility

The company imports many products and is actively adjusting sourcing to offset tariff pressure.

Scope
China and other overseas sourcing markets
Materiality
high
high

Supply-chain and port disruption

Delayed shipments or inventory shortages can hurt service levels and force expensive air freight.

Scope
Ocean freight, ports and overseas manufacturers
Materiality
high
medium

Regulatory and consumer preference shifts

Disposable foodservice products face environmental regulation and substitution toward sustainable materials.

Scope
Plastic packaging and single-use products
Materiality
medium
medium

Operational disruption at warehouses

The business relies on distribution centers for storage, production and fulfillment.

Scope
Earthquakes, fires, floods, pandemics, cyberattacks
Materiality
medium
Seasonality
Quarterly results may not be directly comparable across the year
Allowance for doubtful accounts
Bad-debt expense and net receivables
Goodwill and long-lived asset impairment
Earnings and balance-sheet carrying values
Inventory valuation and sourcing costs
Cost of goods sold and margin volatility
Lease accounting
Balance sheet liabilities and operating expense presentation

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: 28/04/2026