KBS - Packaging - Market Insight

EBITDA MULTIPLE RANGES IN THE PACKAGING SECTOR In the UK and global packaging sector, EBITDA multiples for company sales typically range from 5x to 12x depending on recurring revenue models, technological capabilities and market positioning. Key valuation trends include: • Contract Packaging and Fulfilment Services: Businesses offering outsourced packaging solutions, subscription-based fulfilment and long-term supply contracts typically see 6x-10x multiples, with premium valuations for those with strong client retention and recurring revenue models. • Sustainable & Smart Packaging Manufacturers: Companies producing eco-friendly materials, biodegradable packaging or smart packaging solutions (e.g. RFID-enabled, QR-coded packaging) tend to achieve 7x-12x multiples, especially if they own proprietary technology or have strong supplier agreements. • Recycling & Circular Economy Solutions: Firms specialising in recycled packaging materials, closed-loop solutions and compliance with sustainability regulations trade at 6x-10x multiples, benefiting from increasing ESG requirements and demand for sustainable alternatives. • Packaging Equipment and Automation Providers: Businesses offering advanced machinery, robotics and automated packaging solutions tend to see 5x-9x multiples, with higher valuations for firms with strong IP and industry accreditations. • Advanced Materials and Innovation-Driven Solutions: Companies developing high-performance materials, AI-powered production optimisation and next-generation packaging technologies achieve 8x-12x multiples due to their high-margin, scalable and innovation-driven business models.