Packaging M&A update: Q1 2017
Many packaging manufacturers are turning to automation, standardization, and innovation to increase profits while meeting consumer demands for longer shelf lives and more eco-friendly packaging. The Packaging M&A update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the Packaging industry.
- Consolidation and automation1: Many large industry players have consolidated and most operators remaining in the industry have continued to invest in labor-saving machinery and technology in an effort to gain market share and increase profits by reducing reliance on labor.
- Increased shelf life2: As demand for fresh, health-focused produce and snacks increases, flexible packaging manufacturers with high-quality manufacturing capabilities and innovative products should realize significant growth.
- Standardization3: As ecommerce continues to represent an increasingly large share of the retail market, there will be growing demand for standardized packaging containers to handle shipping, as well as processes to streamline distribution and enable cross-brand bundling.
- Going green: Many consumers are becoming more aware of global environmental issues and are changing their buying habits accordingly. Lightweighting and the use of recyclable materials will continue to be embraced with an added emphasis on clearly communicating the packaging disposal options on the label.
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1 “Packaging & Labeling Services in the US: Market Research Report”, IBIS World. October 2016.
2 “2017 Executive Forecast of the Flexible Packaging Industry”, Flexible Packaging Magazine. February 1, 2017.
3 “Top 5 packaging trends to watch in 2017”, Outlook Group. January 1, 2017.