Karat Packaging
Karat Packaging Inc. is a NASDAQ-listed manufacturer and distributor of eco-friendly single-use foodservice products, including paper bags and disposable packaging, serving restaurants and national chain accounts across the United States.
- Company typePublic
- Founded2004
- HeadquartersChino, United States
- Headcount501–1,000
- GTM typeB2B
- OfferingHardware or Manufacturing
What Karat Packaging does
Karat Packaging Inc. (NASDAQ: KRT) is a public specialty manufacturer and distributor of single-use, primarily eco-friendly disposable foodservice products serving restaurants and foodservice operators throughout the United States. Founded in 2004 and headquartered in Chino, California, the company employs 501–1,000 people and operates a vertically integrated supply chain spanning sourcing, manufacturing, and direct distribution to end customers. Its portfolio centers on eco-friendly packaging — cups, containers, utensils, and paper bags — with paper bags emerging as a focal growth category supported by multi-year supply agreements with major national chain accounts. Karat competes against larger incumbents such as Dart Container and Huhtamaki in the sustainable packaging segment, with management projecting $20–25 million in annual revenue per national chain partner and a $100 million paper bag revenue target.
The company's revenue model is a direct, one-time-sale distribution of physical goods priced on a per-unit basis across contracts with both national chains and broader foodservice customers. Quarterly results reported in 2025–2026 reflect double-digit YoY revenue growth, EPS beats versus analyst consensus, and four consecutive years of dividend increases alongside a quarterly cash dividend of $0.45 per share. The go-to-market is sales-led enterprise field sales, with senior leadership conducting one-on-one investor meetings at growth conferences to support capital-markets positioning for a ~$537 million market-cap equity.
Recent strategic actions include a June 2025 secondary stock offering by management shareholders totaling $40.5 million (with no proceeds to the company), the November 2025 launch of a $15 million share repurchase program, the appointment of BDO USA as the new independent auditor in March 2026, and the execution of multi-year paper bag supply contracts with national chains. A previously disclosed material weakness in internal controls was acknowledged concurrent with upwardly revised 2026 EPS guidance.
Karat Packaging firmographics
Firmographics- Name
- Karat Packaging
- Legal name
- Karat Packaging Inc.
- Website
- https://karatcup.com
- Company type
- Public
- Founded year
- 2004
- Operating status
- Operating
- Headcount range
- 501–1,000 employees
- Short description
- Karat Packaging Inc. is a NASDAQ-listed manufacturer and distributor of eco-friendly single-use foodservice products, including paper bags and disposable packaging, serving restaurants and national chain accounts across the United States.
- Ownership category
- akta.pro rank
Karat Packaging industry classification
Industry- Product category
- Foodservice Packaging
- NAICS
- Food Manufacturing (311)
- SIC
- Miscellaneous Food Preparations & Kindred Products (2090)
- akta.pro primary industry
- Foodservice Disposables (cups, plates, bowls, trays, clamshells) (IMAMAHAI)
- akta.pro secondary industry
- Foodservice/To-Go Packaging (Cups, Clamshells, Cutlery) (IMALAHAM)
Keywords
Where Karat Packaging is headquartered
LocationHeadquarters
- HQ city
- Chino
- HQ country
- United States
- HQ region
- North America
Markets served
Karat Packaging business model
Business model- GTM type
- B2B
- Offering type
- Hardware or Manufacturing
- Cost components
- Supply Chain, Operations, Personnel, Marketing or Sales, Infrastructure
Revenue model
- Disposable foodservice product sales: Manufactures and distributes disposable foodservice products including eco-friendly packaging to restaurants and foodservice settings throughout the United States
- Paper bag sales: Growing paper bag revenue stream with $100 million revenue target; secured contracts with major national chains
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Quarterly | $0.45 per share quarterly dividend |
Go-to-market motion2 records
Distribution channels1 record
Marketing channels1 record
Karat Packaging product offering
Product offeringCore offering
Karat Packaging manufactures and distributes a broad portfolio of disposable foodservice products, including eco-friendly single-use packaging such as paper bags, cups, and containers. The company serves restaurants and foodservice operators across the United States through a vertically integrated supply chain, competing against larger players like Dart Container and Huhtamaki in the sustainable packaging sector.
Product overview
Karat Packaging operates as a specialty distributor and manufacturer of disposable foodservice products serving restaurants and foodservice settings throughout the United States. The company offers a focused portfolio of single-use packaging solutions, with paper bags representing a significant product category. The company leverages a vertically integrated supply chain and competes in the sustainable packaging sector against larger players like Dart Container and Huhtamaki. The product line centers on eco-friendly single-use packaging with no modular platform architecture described.
Differentiator
Problem solved
Functional benefit
Products and services
- Disposable Foodservice Products
- Paper Bags
Quantifiable outcome
- Q1 2026 revenue of $116.9 million representing 12.9% YoY growth, exceeding analyst estimates by $2.63 million
- +2 more outcomes
Companies that use Karat Packaging
Customer profileNamed customers1 record
Segments3 records
Ideal customer profiles2 records
Karat Packaging technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature1 record
Karat Packaging partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered minor and core.
- BDO USA, P.C.minorAppointed as new independent auditor, replacing PwC, effective immediately.
- Major National Chain (unnamed)coreTwo-year supply agreement with a major national chain for paper bag products. Management projects $20-25 million in annual revenue per chain. Company targets $100 million paper bag revenue goal.
Scale indicators8 records
Recent moves6 records
Expansion highlights4 records
Karat Packaging competitors and assessment
Company assessmentDirect peers
- Dart Container Corporation: Private North American leader in foodservice disposables, including cups, lids, containers, and cutlery. Explicitly named by Karat as a primary direct competitor in disposable foodservice products, with overlapping product lines and target customers.
- Huhtamäki Oyj: Global foodservice packaging manufacturer with significant North American presence in paper/board and plastic disposable packaging. Explicitly named by Karat as a direct competitor, with overlapping sustainability-focused product portfolios and chain customer bases.
- Pactiv Evergreen Inc. Major North American foodservice and foodsafe packaging producer with cups, lids, clamshells, and cartons. Directly comparable in product mix and customer base (national restaurant chains, foodservice distributors).
- Sabert Corporation: Manufacturer of sustainable foodservice packaging including clamshells, bowls, and lids. Competes head-to-head with Karat in eco-friendly disposables for restaurant and foodservice chains.
- Genpak LLC: North American producer of disposable foodservice packaging (containers, lids, tableware). Direct peer serving similar restaurant and foodservice customers with overlapping disposable product categories.
- Novolex Holdings: Large North American specialty packaging producer with broad foodservice disposables offerings including the Eco-Products brand in sustainable packaging. Comparable scale and product breadth, with direct overlap in eco-friendly disposables.
- Eco-Products (a Novolex brand): Leading North American brand of compostable and recycled-content foodservice packaging. Direct competitor in the eco-friendly disposable segment that is Karat's core growth driver.
Emerging players
- World Centric: Certified B Corp specializing in compostable foodservice packaging (cutlery, cups, containers, bags). Comparable eco-friendly product portfolio targeting foodservice operators, though smaller and more niche than Karat.
Broad incumbents
- Amcor plc: Global packaging giant with significant foodservice and consumer packaging exposure following the Berry Global combination. Operates broadly across packaging categories with overlapping disposable and flexible packaging capabilities.
- Sealed Air Corporation: Diversified packaging company with foodservice and protective packaging lines. While not a pure-play foodservice disposable, it competes for chain-account packaging spend and has sustainability-led product initiatives.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights6 records
Customer concentration
Karat Packaging social profiles
Digital presenceKarat Packaging financial estimates
Financial estimateRevenue estimate
Valuation estimate
Karat Packaging leadership team
Management profileNumber of profiles
Profiles3 records
Karat Packaging funding detail
Funding detailFunding overview
Funding rounds2 records
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Karat Packaging M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Karat Packaging
What does Karat Packaging do?
Karat Packaging manufactures and distributes a broad portfolio of disposable foodservice products, including eco-friendly single-use packaging such as paper bags, cups, and containers. The company serves restaurants and foodservice operators across the United States through a vertically integrated supply chain, competing against larger players like Dart Container and Huhtamaki in the sustainable packaging sector.
Is Karat Packaging a public or private company?
Karat Packaging is a public company. It is classified as public and is currently operating.
When was Karat Packaging founded?
Karat Packaging was founded in 2004. It employs 501 to 1,000 people.
Where is Karat Packaging based?
Karat Packaging is headquartered in Chino, United States, in the North America region.
How does Karat Packaging make money?
Two revenue lines are on record. Disposable foodservice product sales are the primary driver. The others are paper bag sales.
Who are Karat Packaging's main competitors?
Direct peers on record are Dart Container Corporation, Huhtamäki Oyj, Pactiv Evergreen Inc., Sabert Corporation, Genpak LLC, Novolex Holdings and Eco-Products (a Novolex brand). World Centric is listed as an emerging player. Broad incumbents are Amcor plc and Sealed Air Corporation.
Does Karat Packaging have an API?
No public API is recorded for Karat Packaging.
What industry is Karat Packaging in?
Karat Packaging's product category is Foodservice Packaging. Its primary akta.pro industry code is IMAMAHAI, Foodservice Disposables (cups, plates, bowls, trays, clamshells), with a secondary code of IMALAHAM, Foodservice/To-Go Packaging (Cups, Clamshells, Cutlery). Its NAICS code is 311 and its SIC code is 2090.