Mergers and acquisitions (M&A) have become a defining feature of the packaging industry’s evolution in recent years.
With shifting market demands, increasing regulatory pressure, and a stronger focus on sustainability, companies are strategically combining forces to strengthen their positions.
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This article explores the key trends shaping M&A activity in packaging today, highlighting how consolidation, technology, and sustainability are driving deal-making.
Consolidation shapes the packaging landscape
The packaging sector is experiencing significant consolidation as firms seek scale, operational efficiency, and geographic reach.
Large deals such as Amcor’s acquisition of Berry Global for $8.4 billion illustrate this drive to build diversified portfolios capable of serving a wide range of end markets, from food and beverage to healthcare.
By merging, companies reduce redundancies and can spread research and development costs across a broader base, enhancing innovation capacity.
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By GlobalDataSimilarly, Novolex’s $3.2 billion purchase of Pactiv Evergreen, backed by private equity, demonstrates how strategic acquisitions help businesses expand their footprint and improve supply chain integration.
International Paper’s acquisition of DS Smith in early 2025 for $9.9 billion further highlights a move towards combining paper-based packaging assets to tap into growing demand for recycled and sustainable materials.
This wave of consolidation is partly a response to mounting operational pressures. Raw material costs, regulatory complexity, and the need for rapid product development encourage companies to seek partnerships that boost competitiveness.
As a result, the packaging sector’s M&A activity remains robust, with strategic buyers focused on scaling up their capabilities and broadening market coverage.
Technology and sustainability influence deal priorities
Beyond size and scale, technology and sustainability have become central drivers of M&A decisions.
Packaging companies are increasingly investing in automation, digitalisation, and smart packaging solutions to optimise production and meet evolving consumer expectations.
These technological capabilities make companies more attractive acquisition targets, as buyers seek to enhance innovation pipelines and improve operational agility.
Sustainability, in particular, has emerged as a vital factor shaping the sector’s consolidation patterns. With growing regulatory requirements such as Extended Producer Responsibility (EPR) and the EU’s Packaging and Packaging Waste Regulation (PPWR), companies are compelled to adopt circular economy principles and integrate recycled or renewable materials.
Firms that demonstrate strong sustainability credentials, especially in biodegradable, compostable, or recyclable packaging, often command premium valuations.
The strategic acquisition of businesses with sustainable packaging technologies allows larger players to accelerate their environmental goals and align with consumer preferences.
This trend reflects the wider industry transformation, where environmental impact is not only a regulatory necessity but also a brand differentiator.
Shifting investor landscape and market outlook
The M&A market in packaging is also influenced by changes in investor behaviour and financing conditions. Private equity’s involvement has lessened recently, with their share of total invested capital declining substantially in early 2025.
This shift may be attributed to higher capital costs and a more cautious approach to deal-making amid economic uncertainty. However, private equity remains an important force for driving innovation and consolidation in niche segments.
Meanwhile, strategic buyers are expected to maintain strong interest in acquisitions, focusing on deals that bring technological advancement, sustainability expertise, or new market access.
The trend towards localised manufacturing and regional supply chain optimisation is also influencing deal rationale, with companies seeking to reduce complexity and improve responsiveness.
Looking ahead, the packaging industry is poised for continued M&A activity driven by the need to innovate, comply with tightening regulations, and meet consumer demand for environmentally responsible products.
Deal-making will likely remain a key strategy for companies aiming to stay competitive in a rapidly evolving market.
Looking ahead
The current landscape of packaging mergers and acquisitions reveals an industry in transition, balancing growth with sustainability and technological advancement. Consolidation remains a prominent theme, underpinned by the quest for scale and operational efficiency.
At the same time, the growing importance of sustainable materials and smart packaging solutions shapes how companies evaluate potential acquisitions. With investor dynamics shifting, strategic buyers are poised to continue leveraging M&A as a tool for growth and innovation.
For businesses and stakeholders in packaging, understanding these trends is crucial for navigating future opportunities and challenges in the sector.
The ongoing evolution driven by consolidation, technology, and sustainability will ensure that M&A remains central to shaping the packaging industry’s future.
