Packaging box

Analysis

Packaging M&A update: Q2 2020

The global packaging industry is expected to see growth in many of its sectors, such as sustainable plastic packaging, pet food packaging, and cosmetic packaging. Growth in many of these sectors can be fueled by increasing demand for convenient, innovative, and sustainable packaging solutions. This packaging mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC market data analysis that sheds light on M&A trends in the packaging industry.

Packaging trends

  • Impact of COVID-19:1 The packaging sector has remained resilient in the face of the global pandemic. Many packaging businesses were deemed essential and remained open. Many small and midsized businesses focused on food and beverage, pharmaceutical, and e-commerce applications fared particularly well. While many public company stock prices declined at the onset, the packaging segment has seen a 27 percent increase in value since its five-year low in March.
  • Sustainable plastic packaging market:2 The sustainable plastic packaging industry is projected to be valued at $89.0 billion by the end of 2020. The industry is expected to grow by an annualized 5.6 percent in the coming years, reaching a value of $117.3 billion by 2025. Sustainable plastic packaging typically consists of biodegradable plastic that naturally decomposes. The industry has benefited from stringent regulations levied by governments and shifting consumer preferences.
  • Pet food packaging market:3 The pet food packaging market is expected to be valued at $10.2 billion by the end of 2020. The market is projected to grow by an annualized 4.2 percent from 2020 to 2025, reaching a value of $12.5. Geographic expansion into emerging economies offers the strongest opportunities for competitors in the space. The market is currently benefiting from rising affection for pets and adoptions, increasing income level of pet owners, demand for packaging convenience, and the growing trend of pet humanization.
  • Cosmetic packaging market:4 The global cosmetic packaging market is valued at $49.4 billion in 2020 and is expected to expand to $60.9 billion in 2025, representing a compound annual growth rate of 4.1 percent from 2020–2025. The largest segment of the cosmetic packaging market is the bottles segment, in both volume and value. Growth in the market can be largely attributed to rising demand for grooming products from younger populations and increasing demand for innovative, sustainable, and attractive packaging solutions.

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References

S&P Capital IQ, https://www.capitaliq.com, accessed July 16, 2020. Data as of June 30, 2020.
MarketsandMarkets, “Sustainable Plastic Packaging Market-Global Forecast to 2025,” https://www.marketsandmarkets.com/Market-Reports/sustainable-plastic-packaging-market-147972697.html, accessed July 15, 2020.
MarketsandMarkets, “Pet Food Packaging Market-Global Forecast to 2025,” https://www.marketsandmarkets.com/Market-Reports/pet-food-packaging-market-150550375.html, accessed July 15, 2020.
4 MarketsandMarkets, “Cosmetic Packaging Market-Global Forecast to 2025,” https://www.marketsandmarkets.com/Market-Reports/cosmetic-packaging-market-1307.html, accessed July 15, 2020.

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