{"id":8473,"date":"2025-07-29T01:51:02","date_gmt":"2025-07-29T05:51:02","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=8473"},"modified":"2025-07-29T01:51:02","modified_gmt":"2025-07-29T05:51:02","slug":"packaging-companies-push-ahead-with-mergers-despite-tariffs","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=8473","title":{"rendered":"Packaging companies push ahead with mergers despite tariffs"},"content":{"rendered":"


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Amid uncertainty, the sector is focusing on efficiency, global reach, and sustainable packaging. \/ Credit: Gorodenkoff via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

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.<\/p>\n

Deal momentum remains high, supported by strategic consolidation and growing investor interest.<\/p>\n

Leading firms are responding to rising costs, trade uncertainty and demand for sustainable packaging with bolt\u2011on acquisitions and operational scale\u2011ups, reinforcing the sector\u2019s resilience.<\/p>\n

Market dynamics and tariff pressures<\/h2>\n

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.<\/p>\n

For instance, Mondi limits tariff risk to under 3% of exports through a global footprint, while Crown Holdings reports only $10\u201130\u202fmillion in exposure due to geographically balanced production.<\/p>\n

These strategies, along with tariff pass\u2011through mechanisms and local manufacturing, have helped shield margins from volatility.<\/p>\n

Public company financial strength and demand trends<\/h2>\n

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\u202fbillion for the first time, supporting an optimistic outlook.<\/p>\n

Heightened consumer demand for recyclable and high\u2011margin sustainable packaging has contributed to overall sector stability.<\/p>\n

Portfolio realignment and concentration of deals<\/h2>\n

Packaging M&A remains active, with year\u2011to\u2011date deal volume continuing to climb.<\/p>\n

The market has seen a shift toward consolidation among major players and portfolio realignment: firms are divesting non\u2011core assets while pursuing strategic acquisitions. In 2024, 135 deals were announced or closed \u2014 a 20\u202fpercent decline versus the prior year \u2014 yet total disclosed enterprise value reached $18.5\u202fbillion, underscoring persistent appetite for large transactions.<\/p>\n

Deal multiples stayed solid, averaging approximately 1.5\u00d7 EV\/revenue and 8.7\u00d7 EV\/EBITDA.<\/p>\n

Outlook: sustainable packaging and M&A trajectory<\/h2>\n

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.<\/p>\n

Private equity and strategic investors are particularly focused on specialised and sustainable packaging segments \u2014 such as cold\u2011chain, protective and recycled materials \u2014 where firms face less international supply chain exposure.<\/p>\n

Capstone expects M&A volume to strengthen, driven by demand for scale, vertical integration and innovation in sustainable packaging.<\/p>\n

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