Packaging Market Update - May 2025
Over the last week, members of Mazzone’s packaging team attended the ARC Executive Flexible Packaging Summit hosted at MxD in Chicago as well as “The Future of Packaging” conference hosted by Smithers and LEK Consulting – also in Chicago. Across these events and the last month, our team met with industry players across the supply chain from packaging converters, equipment / system providers, substrate and input producers, distributors and automation service providers. Below, we share our observations on today’s flexible packaging market.
The packaging M&A market entered 2025 with enthusiasm and anticipation for a high volume of transactions; however, this expectation has been muted given recent U.S. trade policies and general market uncertainty. No negative impact is yet visible in the Packaging M&A deal data through April 2025, however, we do anticipate closings to slow in the near-term for certain players.
April YTD 2025 North America Packaging Converter M&A Transaction Trends (as of May 2025):
M&A Volume Trends: Contrary to expectations of continued decline, packaging M&A activity in 2024 remained resilient, with 2025 continuing that momentum. Year-to-date deal volume through April 2025 is up from 2024, driven largely by private equity platforms and add-ons. This divergence from broader market data likely reflects our inclusion of smaller transactions (<$50M revenue).
Near-Term Outlook: We expect a short-term decline in closings, as deals set in motion early in 2025 were impacted by tariff and recession concerns. Market participants report a 25–35% drop in new deals coming to market this year.
Forward-Looking Trends: About 41% of sponsor platforms launched between 2018–2020 have yet to trade, suggesting a buildup of supply. With destocking behind us and material costs stabilizing, converters are better positioned to transact.
Acquirer Activity: All acquirer types were more active through April 2025, indicating broad attraction of packaging assets, with sponsor platforms (LBOs) showing the strongest growth compared to early 2024.
Deal Size Trends: Most transactions involved smaller companies (<$50M revenue). Larger deals remain scarce and highly competitive.
Valuation Trends: While data is limited, valuations have remained stable since 2024, staying within long-term historical ranges shared in Mazzone’s Spring 2025 Packaging Industry Insights Newsletter.
Packaging vs. Other Sectors: Inelastic and non-cyclical packaging assets are proving more resilient. As capital shifts away from cyclical sectors, demand for these assets increases.
Strategic Focus: To stay competitive, strategic buyers are prioritizing sustainable technologies, expanding and diversifying geographic reach (U.S.entities securing Canada operations and vice versa), and enhancing product portfolios.
Upcoming Packaging Industry Events
The Mazzone team is dedicated to staying engaged and informed through our active participation in key conferences and events within the packaging industry, including the upcoming events below:
AWA Mergers & Acquisitions Executive Forum June 6, Virtual
Pack Expo September 29 – October 1, Las Vegas
To explore the implications of recent Packaging industry trends, share developments within your organization, or gain insight into Mazzone’s wide range of advisory capabilities and expertise in the Packaging sector, we invite you to contact our team." Please contact Jonathan White jwhite@mazzoneib.com or Stuart Sanford ssanford@mazzoneib.com for any inquiries related to our services or information provided herein.
Note: All data reflects the periods of January to April for each of 2024 and 2025; “Converters” include Paper-based, Resin-based (rigid and flexible), Glass, Metal, and Labels (excludes Contract Packaging, Distribution, and Machinery & Equipment).
