KBS - Packaging - Market Insight

KEY DRIVERS AND MOTIVATIONS FOR ACQUIRERS

+ PORTFOLIO EXPANSION AND CAPABILITY BUILDING

Trade acquirers are pursuing M&A to broaden their offerings and to stay competitive. These strategic buyers are acquiring in order to fill gaps in their product portfolio or geographic footprint.

Moreover, established packaging firms are motivated by scale and cost synergies. Through M&A, they can achieve greater purchasing power for raw materials, optimise manufacturing footprints and eliminate overheads. The recent wave of mega-mergers in the industry underscores this. Deals such as Smurfit Kappa’s merger with WestRock (forming a transatlantic packaging giant) and Amcor’s $8.4bn acquisition of Berry Global are aimed at creating global leaders with unparalleled scale. + SUSTAINABILITY AND INNOVATION Trade buyers are focusing on acquiring companies that will aid in meeting new market demands, particularly around sustainability and innovation. Firms have shown interest in acquiring start-ups or niche players with proprietary green materials, recycling capabilities or ‘smart packaging’ tech. The UK has seen examples of this, with larger packaging groups investing in firms specialising in environmentally friendly materials and tech, e.g. deals involving bioplastic and compostable packaging start-ups.

Investment into new technologies dominates the market, for example Equity Gap acquired a stake in Interpac, a technology that enables box-makers to self-manufacture cold corrugated boards.

The global packaging market size reached $1.24tn in 2024.