Karat Packaging Inc. operates primarily as a distributor of single-use disposable products for the foodservice industry, complemented by select in-house manufacturing capabilities. The company's extensive product portfolio includes food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, and straws, available in plastic, paper, biopolymer-based, and other compostable materials. A key revenue driver is its Karat Earth brand, which features eco-friendly and commercially compostable products that account for over a third of total sales. In addition to packaging, Karat distributes specialty food and beverage items such as syrups and boba tea ingredients.
The company's business model is heavily weighted toward distribution, which generates approximately 91% of its net sales, while in-house manufacturing at its facilities in California, Texas, and Hawaii accounts for the remaining 9%. This hybrid approach allows Karat to maintain supply chain resilience, offer customized solutions with short lead times, and optimize procurement costs. Geographically, the company serves the North American market through a strategically located network of distribution centers. Karat Packaging serves a diverse customer base, including national and regional restaurant chains, smaller local operators, and other foodservice providers, leveraging its robust logistics capabilities to maintain a competitive position in the packaging distribution market.
