February 2025 was a busy month in the world of bulk materials, with key developments shaping the food, chemical, and agricultural industries. From soaring egg prices impacting ingredient costs to advancements in sustainable packaging and a promising outlook for the snack food market, these headlines highlight critical trends and challenges. Additionally, U.S. chemical production closed the year on a positive note, while wheat planting projections suggest a shift in supply dynamics. If you missed any of these major updates, we’ve got you covered—here’s a quick recap of five important bulk material stories from the past month.
The recent surge in egg prices, primarily due to the highly pathogenic avian influenza (HPAI) outbreak, has significantly impacted the costs of baked goods and other food items that utilize egg products. Sosland Publishing's proprietary bakery ingredient indexes reveal that, compared to the previous year, the ingredient costs have risen notably: the shortbread cookie index increased by 12% to 251.2, the cake donut index surged by 58% to 353.9, and the Devil's food cake index escalated by 74% to 461.9. These hikes are predominantly attributed to egg prices, which have seen substantial year-over-year increases as of February 7, with dried egg whites up 77%, dried egg yolks up 222%, and Grade A large eggs up 165%.
In contrast, products less reliant on eggs have experienced cost decreases. The saltine cracker index declined by 2.5%, the bagel index by 6%, the white pan bread index by 9%, and the pasta index by 16%. These reductions are linked to the decreased prices of flour, a primary ingredient in these items, with bakers standard patent flour down 10%, spring standard patent flour down 5%, and semolina down 16%. This disparity underscores the significant influence of soaring egg prices on products heavily dependent on egg ingredients.
The extrusion coating market is evolving to provide sustainable alternatives that meet current packaging technical requirements, driving the shift toward more recyclable and compostable options.
A notable advancement in this field is BASF's Ecovio® 70 PS14H6, an extrusion coating resin containing 70-80% biobased content. This material offers excellent liquid and grease barrier properties and high thermal stability, making it suitable for paper and board coating processes in food packaging. Additionally, collaborations like that between UPM Specialty Papers and Eastman have led to the development of paper-based packaging with a bioplastic coating, enhancing oxygen and grease barriers while being compostable.
The snack food industry is experiencing robust growth, driven by evolving consumer preferences, technological advancements, and a heightened focus on sustainability. According to PMMI's recent Snack Foods Packaging Trends white paper, 92% of snack food manufacturers anticipate growth over the next three years, with an average projected increase of 10.5% in capital spending on new machinery and technology. This optimism is fueled by rising consumer demand, the introduction of new SKUs, and a strong push for efficiency through automation.
The industry is also prioritizing sustainability, with companies focusing on recyclable materials, waste reduction, and eco-friendly packaging solutions. However, approaches to sustainability vary, influenced by regulatory landscapes and extended producer responsibility policies. To enhance productivity, manufacturers are exploring automation, predictive maintenance, and AI-driven diagnostics, alongside investments in food safety innovations like advanced X-ray detection and improved cleaning processes.
In December 2024, U.S. chemical production experienced a 1.2% increase, marking a positive end to the year. This uptick was observed across all regions, with the West Coast leading the gains. The improvement aligns with a broader global trend, as worldwide chemical production also rose by 1.1% during the same period.
The December growth in chemical production reflects higher output in both the U.S. and China, with China's increase at 2% outpacing the U.S.'s 1.2%. European production stabilized but remained weak, and some major producers in Asia saw declines. Overall, global chemical production was up compared to the same month last year.
The U.S. Department of Agriculture (USDA) projects an increase in wheat planted area for the 2025-26 marketing year, with total wheat acreage expected to reach 47 million acres, up 0.9 million acres from the previous year. This expansion is anticipated to boost total wheat supply to 2,830 million bushels, a 1% increase from 2,798 million bushels in 2024.
Despite the larger planted area, wheat production is forecasted to decrease by 2% to 1,926 million bushels, primarily due to a slight reduction in harvested area and a decrease in average yield from 51.2 bushels per acre in 2024 to 50.1 bushels per acre in 2025. The USDA also estimates winter wheat seeded area at 34.1 million acres, a 2% increase from 2024.
These projections suggest that while more acres are being devoted to wheat cultivation, factors such as reduced yields and harvested areas may offset potential gains in overall production.