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
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
| % | |
|---|---|
| Disposable foodservice packaging | 55% Single-use containers, cups, lids, boxes, bags and tableware used in take-out and dine-out service. |
| Sustainable and compostable products | 20% Biopolymer-based and other eco-friendly packaging sold to customers seeking greener alternatives. |
| Foodservice supplies and consumables | 15% Cutlery, straws, gloves, janitorial supplies and related operating items for foodservice businesses. |
| Specialty beverage ingredients | 5% Ingredients and accessories used in beverage concepts such as boba and cold drinks. |
| Custom services and logistics | 5% 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...
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
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
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
: 28.4.2026