Karat Packaging (KRT) concentration risks

Karat Packaging's concentration risk is entirely on the supply side, and the picture disclosed in the filing shows the company actively working to reduce it. Purchases from Taiwan account for approximately 50% of global sourcing, a dependency-type exposure that remains the company's single largest geographic reliance in its supply chain. By contrast, exposure to China has been deliberately reduced: purchases fell from approximately 22% of global sourcing in 2024 to approximately 15% in 2025, as the company "strategically and swiftly realigned" its supply chain. That trend line is itself informative — it signals management is actively managing geographic supplier risk rather than treating it as static. Netting these out, the Taiwan sourcing share is the exposure most relevant to any verdict, since a disruption there — whether logistical, tariff-related, or geopolitical — would touch half of global sourcing. The China exposure, now at a lower share and trending down, is a comparatively minor and shrinking piece of the risk picture. Overall, Karat's supply chain remains geographically concentrated in Taiwan, but the direction of travel on the China side suggests the company has both the awareness and the operational flexibility to rebalance sourcing when conditions warrant.

For the engine’s reasoning on KRT’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.