Packaging M&A update: Q4 2018
The overall packaging industry, including sectors such as contract, molded plastics, corrugated, and anti-counterfeit, is expected to grow through 2024. Factors such as government policies, market growth and changes in the food & beverage and pharmaceutical industries are contributing to this upward trend. This Packaging mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the Packaging industry.
- Anti-counterfeit packaging market1: The global anti-counterfeit packaging market is expected to grow at a compound annual growth rate (CAGR) of about 12 percent during the forecast period 2018-2023. Anti-counterfeit packaging is an additional measure taken by businesses to maintain the authenticity and safety of their goods. Anti-counterfeit technologies are supported by many favorable government policies in the food & beverage and pharmaceutical packaging sectors.
- Global corrugated packaging market2: The global market for corrugated packaging is predicted to grow at an annualized rate of four percent, to reach an expected value of $173.6 million in the year 2020. Due to its low cost and easy handling, corrugated packaging is used for shipments throughout various industries. The rapid shift towards e-commerce and internet shopping is driving significant market growth.
- Global blow-molded plastics market3: The global blow-molded plastics market is forecast to grow at a CAGR of four percent from 2018 to 2022. A key market growth driver is the rising adoption of increased demand for Polyethylene Terephthalate (PET) and bio-PET packaging solutions. Quickly growing demand for water bottles and packed beverages are also expected to contribute to the blow-molded plastics market growth. The global water market is expected to grow over 32 percent from $207.8 billion in 2017 to $274.8 billion in 2022.
- Global contract packaging market4: The global contract packaging market is expected to grow to $57.9 billion in 2025 from $31.3 billion in 2018, representing a CAGR of 9.1 percent. Currently, the Food and Beverage Industry is the primary end-market for the contract packaging industry. The Pharmaceutical industry is expected to drive industry growth due to stringent government regulation. Most pharmaceutical companies outsource the packaging of their products to contract packaging businesses that can meet the high government standard facility requirements.
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1 Market Research Future.“Anti-counterfeit packaging market Research Report-Forecast to 2023.”
2 Research Report Insights.“Corrugated Packaging MarketIs Predicted to Expand at a CAGR of 4% by 2020: RRISays.” http://whattheythink.com/news/92916-corrugated-packaging-market-predicted-expand-cagr-4-2020-rri-says/, accessed January
3 Plastics Today. “Blow-molded plastic bottles growing globally at 4% CAGR.” https://www.plasticstoday.com/packaging/blow-molded-plastic-bottles-growing-globally-4-cagr/8701377959568, accessed January
4 Research and Markets.“Global Contract Packaging Market-by Services, Vertical, Region-Market Size