The packaging market update for June 2025 shows that merger and acquisition (M&A) activity in the packaging sector continues to rise, even as companies face ongoing tariff pressures and supply chain disruption.
Deal momentum remains high, supported by strategic consolidation and growing investor interest.
Leading firms are responding to rising costs, trade uncertainty and demand for sustainable packaging with bolt‑on acquisitions and operational scale‑ups, reinforcing the sector’s resilience.
Market dynamics and tariff pressures
Tariffs and trade tensions continue to challenge the global packaging supply chain, especially for companies exporting into the U.S. and other jurisdictions. Some sector participants have insulated themselves by diversifying production across regions.
For instance, Mondi limits tariff risk to under 3% of exports through a global footprint, while Crown Holdings reports only $10‑30 million in exposure due to geographically balanced production.
These strategies, along with tariff pass‑through mechanisms and local manufacturing, have helped shield margins from volatility.
Public company financial strength and demand trends
Public packaging companies have posted robust financial results in early 2025, propelled by strong beverage can demand and elevated margins from sustainable packaging solutions. Crown Holdings has reported trailing adjusted EBITDA exceeding $2 billion for the first time, supporting an optimistic outlook.
Heightened consumer demand for recyclable and high‑margin sustainable packaging has contributed to overall sector stability.
Portfolio realignment and concentration of deals
Packaging M&A remains active, with year‑to‑date deal volume continuing to climb.
The market has seen a shift toward consolidation among major players and portfolio realignment: firms are divesting non‑core assets while pursuing strategic acquisitions. In 2024, 135 deals were announced or closed — a 20 percent decline versus the prior year — yet total disclosed enterprise value reached $18.5 billion, underscoring persistent appetite for large transactions.
Deal multiples stayed solid, averaging approximately 1.5× EV/revenue and 8.7× EV/EBITDA.
Outlook: sustainable packaging and M&A trajectory
Looking ahead, market observers expect packaging M&A momentum to continue into late 2025 and into 2026, assuming tariff resolutions and gradual interest rate easing.
Private equity and strategic investors are particularly focused on specialised and sustainable packaging segments — such as cold‑chain, protective and recycled materials — where firms face less international supply chain exposure.
Capstone expects M&A volume to strengthen, driven by demand for scale, vertical integration and innovation in sustainable packaging.
