Packaging - Sector Insights 2024
Packaging - Sector Insights 2024
2023 saw a record volume of transactions in the packaging sector in an otherwise subdued M&A market. Deal volumes increased by 24%, reflecting a resilient sector that is transforming at pace.
Featuring sector insights and analysis from BDO experts, our latest report explores major market themes and how corporates are adopting M&A strategies to address challenge and drive opportunity in the dynamic packaging industry.
Sustainability is at the core of industry change
Sustainability is at the heart of packaging industry challenges and opportunities. Sector regulations and increased consumer awareness of the environmental impact of packaging are driving raw materials innovation.
Businesses are changing their practices, accelerating the adoption of new ways of producing packaging and embracing circular principles. Innovation in the sector is helping to drive a fundamental shift towards higher, more sustainable standards.
What does it mean for M&A in the UK?
M&A has been the catalyst for growth, both as a means of embracing innovation, and a means of building scale amid a tough and highly regulated market environment.
Corporate finance activity can provide access to new skills and know-how to gain competitive advantage and remain compliant with sector regulations. Acquisitions have also sought to reduce supply chain disturbances, improve company operations, diversify product mix and gain market share to take advantage of scale.
In the report, we explore market trends and M&A activity by packaging substrate, report on the latest industry valuations and advise on current deal dynamics. Buyer trends reveal a high prevalence of trade investors, both domestic and overseas, but private equity still accounts for a substantial share of activity.
Corporate strategy continues to be multifaceted and M&A synergies remain a key facilitator of growth in ever increasing complex regulatory environment in the sector. Our industry knowledge and expertise in advising on over 100 packaging deals globally, has given us a unique insight into what strategic, market and commercial considerations are required at all stages of the investment cycle.
If you're considering embarking on M&A or would like to discuss any of the issues arising from our publication, please do get in touch.
Please find below our report from last year.
