CDI Global

Trends Reshaping the Packaging M&A Market

Product packaging can serve many purposes, from protecting and preserving your products to positioning your brand and connecting with your customers. Whether you design your packaging for functionality and practicality or creativity and innovation, the choices you make around product packaging can be critical for your brand or business. In fact, 72% of American consumers say their purchasing decision is heavily influenced by the packaging design of the products they buy (or don’t).

M&A activity in the packaging space remains heightened and is expected to accelerate in the coming years. With a continued surge in e-commerce and online purchasing, packaging has become more important to a business’s brand.  Strategic and sponsor investors have been encouraged by the rise in consumer spending power, attractive margins, and a high degree of fragmentation, resulting in numerous opportunities for consolidation and growth. 

Companies throughout the packaging sector and those seeking investment opportunities, such as private equity firms, have maintained a steady appetite for platform acquisitions in the packaging space over the past 5 years. Even 2020 wasn’t too far down from prior years, all things considered.

The Asia-Pacific and US markets grew with CAGRs of 9.8% and 2.8% respectively, over the same period, to reach respective values of $435,794.6m and $188,235.3m in 2021.  The market's volume is expected to rise to 349.4 million tons by the end of 2026, representing a CAGR of 2.9% for the 2021-2026 period.

The performance of the global market is forecast to accelerate, with an anticipated CAGR of 5.9% for the five-year period 2021-2026, which is expected to drive the market to a value of $1,177,401.8m by the end of 2026. Comparatively, the Asia-Pacific and US markets will grow with CAGRs of 7.7% and 4% respectively, over the same period, to reach respective values of $630,383.3m and $229,120.2m in 2026.

The Asia-Pacific region is expected to continue to drive market growth over the forecast period. Increases in household income, further growth of urban areas, changes in technology and demographic shifts will encourage consumer spending, which will, in turn, increase demand for containers and packaging. China’s private consumption is set to more than double to reach $12.7tn by 2030.

As the sector grows, packaging has trended toward more sustainable and eco-friendly products. Environmental awareness is in the foremind of consumers and brands and businesses are making the changes to their packaging. And investors are taking notice. Sustainable packaging is the biggest trend in the sector and is set to have a significant impact on M&A for the foreseeable future.

The M&A marketing is looking for businesses that offer packaging solution with responsible design concepts by replacing common, single-use packaging materials with reusable, more sustainable materials.

The global market for sustainable packaging is projected to expand at a stellar rate in the coming decade as regulatory bodies, governments and consumers push corporations to adopt environmentally friendly packaging practices. The sustainable packaging market, which includes recycled packaging, reusable packaging and degradable packaging is expected to reach USD 297 billion by 2024 with an anticipated CAGR of 6 percent through 2019 to 2024.

About CDI Global

We hope this guide has stimulated your interest in M&A – and alerted you to both its potential opportunities and hazards. Our 40 years of experience has shown CDI Global how to navigate the shifting marketplace, and guide companies through the process to find opportunities that match their goals.

CDI Global offers expertise in:

  • Packaging sectors – unlike banks and investment advisors, our team has both worked and conducted M&A advisory within various sectors across the industry. We know the industry structure and dynamics inside out.
  • Custom-tailored, pro-active approach. We go out and find the best deal for your unique requirements, and offer pragmatic, hands on support.
  • Extensive network of contacts, particularly among privately owned companies in the Packaging sector.
  • Cross-border M&A expertise and global footprint. CDI Global has expertise on the ground in each territory and operates on the basis of cross-border cooperation.
  • We focus on best strategic fit, not just best price.
  • Experience in search projects and approaching SME owners on a highly confidential basis, improving closing rates and sourcing “not-for-sale” vs auction opportunities.
  • Experience and support in organizing local Due Diligence, managing negotiations and providing results.
  • Commitment to the long-term, both in our strategic advice and when working with clients.
  • Respect we have earned from both parties in our transactions - based on trust and professionalism.

Click here to download our Packaging brochure

By: Cesare Tochio, Hein Stoops

Connect with a CDI Expert. Request a Call Back.

News & Insights

Read more

August 4, 2022

Strategic Acquisitions a Platform for Growth in the Chemical Sector

Read more

July 28, 2022

Specialty Chemicals in the Post-Covid World

1
Q2 Newsletter 2022
2
Agriculture in the Spotlight
3
CDI Global advised ZEG Biogas in transaction with Brazil fuel retailer Vibra Energia