Will this be a problem next year?
The likelihood of this reoccurring is rather high. Prepare by looking over current year's needle growth for signs of eggs (white spots). Prune or pluck these needles off to prevent hatching and feeding. Another option is to check in late-April for signs of larvae and to control the populations early on with a strong liquid dish soap and/or pressure spray.

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1. Will my tree die from the larvae eating all the old growth needles?
2. How long does the feeding last?
3. Will this be a problem next year?
4. Will needles re-grow?