Packaging M&A update: Q3 2018
As consumption of food and beverage, luxury items, and overall consumer purchasing has been on the rise, global digital, luxury, recycling, and protective packaging are expected to continue to increase through 2024. 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.
- Protective packaging market1: The protective packaging market is expected to reach an estimated $32.0 billion by 2022 and is forecast to grow at a compound annual growth rate (CAGR) of 5.7 percent from 2017 to 2022. Key trends impacting the industry include a quickly-growing, flexible, protective packaging segment due to the rise of food and beverage, dairy, and cosmetic product consumption, as well as an increased demand for foam plastics due to its lightweight,
thermalinsulating, and shock-dampening properties.
- Global plastic recycling market2: The global plastic recycling market is forecast to grow at a CAGR of 6.5 percent from $36.7 billion in 2017 to $57.1 billion by 2024. Growth is primarily attributed to greater environmental awareness, increased government regulation encouraging the use of recycled plastics, and growing end-market use of recycled materials. The Asia Pacific region dominated the global market due to rapid industrialization and demand from markets such as China, India, and Japan.
- Digital printing packaging3: The global digital printing packaging market, valued at $12.8 billion in 2017, is forecast to grow at a CAGR of 13.0 percent to $22.4 billion by 2023. Digital printing packaging is used by retailers to attract end-users by providing more relevant packaging options. The labels sector has been an early adopter of digital print technology. Industry growth will be fueled by less-developed packaging formats including corrugated board folding cartons and flexible plastics.
- Global luxury packaging market4: The global luxury packaging market is expected to grow at a CAGR of 4.7 percent from 2018 to 2023. An increase in the luxury product consumption rate and the number of product launches in the fashion and cosmetic sectors are some of the major factors driving the market growth. Many small-scale packaging suppliers are making an effort to differentiate their offerings and enhance the end-user experience through high-quality, engineered, and technologically charged packaging solutions.
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1 Butschl, Jim. “Dairy products advancing rigid plastic food container demand” https://www.packworld.com/article/applications/food/dairy/dairy-products-advancing-rigid-plastic-food-container-demand, accessed July 16, 2018. 2. Overstreet, Kim.
2 “Global flexible packaging market growth.” https://www.packworld.com/global-flexible-packaging-market-growth, accessed July 16, 2018.
3 Grandview Research. “Automotive Plastics Market Analysis By Product (ABS, PP, PU, PVC, PE, PC, PMMA, PA), By Application (Powertrains, Electrical Components, Interior Furnishings, Exterior Furnishings, Chassis), And Segment Forecasts, 2018 - 2025”. https://www.grandviewresearch.com/industry-analysis/automotive-plastics-market, accessed July 16, 2018.
4 Knowledge Sourcing Intelligence LLP. “Biodegradable Plastic Packaging Market—Forecasts from 2018 to 2023, accessed July 16, 2018.