Market insight: The packaging sector

M&A activity in the packaging sector is experiencing significant growth, driven by sustainability imperatives, technological advancements, private equity interest and a dynamic global marketplace.

As a cornerstone of global commerce, spanning sectors from food and beverage to pharmaceuticals and e-commerce, packaging is more than necessity – it is a strategic asset. This growth has triggered a sharp increase in M&A activity, particularly in the UK, where deal activity rose by 25% year-on-year in 2023 alone.

At KBS Corporate, we bring a unique vantage point through our direct involvement in packaging sector transactions. Our insights uncover the shifting landscape of packaging M&A, key trends shaping the market and the motivations behind strategic acquisitions.

Current landscape

The UK packaging market, valued at $60.94bn in 2025, is experiencing unprecedented M&A growth. Globally, industry consolidation is accelerating, evidenced by landmark transactions such as Smurfit Kappa’s merger with WestRock and Amcor’s $8.4bn acquisition of Berry Global. These mega-deals underscore a strategic shift towards scale, global reach and operational efficiency.

A notable trend is the influx of international buyers acquiring within the UK to strengthen their geographic footprint. For example, Dutch private equity group Waterland has been actively acquiring UK packaging companies, allowing them to enhance their European portfolio.

Consolidation is particularly vibrant in niche sub-sectors such as moulded fibre and smart packaging, where growth potential remains robust through 2030.

Key market trends

Sustainability: Packaging companies are at the forefront of sustainability, which is seen in the surge in popularity of biodegradable, recyclable and reusable materials due to changing regulations and ESG goals.

E-commerce: Online shopping, amplified by platforms such as TikTok Shop and Instagram Shop, has revolutionised packaging demand. Brands seek cost-efficient, brand-enhancing solutions that offer a superior ‘unboxing’ experience and minimal waste.

Innovative packaging: Packaging is becoming increasingly intelligent, incorporating RFID, QR codes, NFC and freshness sensors to improve supply chain visibility and customer engagement. Meanwhile, the process itself is becoming more tech-enabled, which is notable in the rise of smart factories, AI-driven optimisation and robotic automation. This is reshaping packaging production, improving efficiency and enabling increased customisation.

Key drivers and motivations for acquires

Portfolio expansions and capability building: Buyers seek to fill gaps in capabilities or geographic presence. Operational synergies resulting from M&A activities allow for cost reductions, purchasing efficiencies and shared infrastructure.

Sustainability and innovation: Acquirers are targeting companies with proprietary green tech, recyclable materials and digital capabilities that align with net-zero goals. Investments in bioplastics, circular economy models and automated systems reflect the sector’s future-forward trajectory.

EBITDA multiple ranges

Typical EBITDA multiples in the packaging industry range between 5x and 12x, depending on the sub-sector, IP and recurring revenue profile.

Contract packaging and fulfilment services: 6x-10x

Sustainable & smart-packaging manufacturers: 7x-12x

Recycling & circular economy: 6x-10x

Packaging equipment and automation: 5x-9x

Advanced materials and innovation-driven solutions: 8x-12x

Factors driving higher multiples

High utilisation and recurring revenue: Long-term contracts and subscription models provide financial predictability.

Investment in modern and scalable infrastructure: Automation, robotics and smart production raise enterprise value.

Sustainability and regulatory compliance: Compliance with ESG framework and plastics taxes boost buyer interest.

Technological innovation and material science: Proprietary materials or tech attract higher multiples.

Market position and customer base: Serving multiple sectors such as pharmaceuticals, food & beverage and retail reduces risk and enhances value.

Private equity and consolidation trends: PE firms drive scale through buy-and-build strategies.

Geographic expansion and infrastructure demand: Companies operating within areas of high demand are attractive prospects for buyers seeking to expand their geographic reach.

Which factors drive growth in the packaging industry?

Technological advancements: The drive towards digitisation, including digital printing for cost-efficient personalisation, smart labels increasing customer interaction and robotic automation for scalable production, are all key growth drivers.

Sustainability: The rising demand for eco-friendly solutions such as paper, glass and bioplastics are not only a reflection of increased customer environmental awareness, but also true industry change.

Regulation: The introduction in 2022 of the Plastic Packaging Tax (PPT) applies a rate of £223.69/tonne in 2025 on plastic packaging components with less than 30% recycled plastic. In 2023, the Extended Producer Responsibility (ERP) was introduced and in 2024 the UK introduced the Primary Pharmaceutical Packaging Accelerator (CiPPPA). In addition to these regulations, the EU also introduced the target of 55% plastic waste to be recyclable by 2025.

E-commerce/Internet of Packaging: The Internet of Packaging (IOP) market is forecast to reach $54.43bn by 2034. Custom-sized and return ready packaging is also in high demand.

Strategic interest from private equity and investment buyers

Strategic buyers are focused on high-growth, niche sub-sectors including:

Flexible Packaging: Plastic films, pouches and labels for e-commerce and consumer goods.

Eco-friendly materials: Compostable, recycling or reusable solutions.

Smart packaging technologies: QR code-enabled, RFID-tagged and freshness-monitoring designs.

Automation-driven solutions: AI-enabled machinery and robotics.

Plastic segment consolidation: Major deals in rigid and flexible plastic packaging, such as Novolex’s acquisition of Pactiv Evergreen and the sale of Berry to Amcor.

Which companies have KBS sold in this sector?

Law Print and Pack sold to SCG Packaging

The Stockport-based packaging solutions provider was acquired by a leading South East Asian packaging manufacturer. The acquisition strengthened SCG Packaging’s position with the UK market whilst expanding geographic reach.

The Packaging Company sold to Antalis

A provider of high-quality and bespoke packaging solutions was sold to Antalis, a global packaging and print distributor. The Packaging Company proved an attractive prospect due to its innovative and customer-focused approach.

Harrisons Packaging sold to MacFarlane Group

The Lancashire-based company became a bolt-on acquisition for Scotland-based MacFarlane Group, strengthening its UK presence.