Packaging M&A Activity Surges Despite Inflation and Regulation

Despite persistent inflation and supply chain vulnerabilities, the global packaging sector saw robust M&A activity in H1 2025, driven by demand from food and beverage, e-commerce, and healthcare industries. Buyers are pursuing assets that align with sustainability mandates and digital transformation, particularly in fibre-based packaging, circular materials, and smart labelling. Firms with strong environmental credentials are commanding premium valuations, with Amcor's $8.4bn acquisition of Berry Global being a notable example. Automation and compliance capabilities are also key drivers of deal interest.

Despite persistent inflation and lingering supply chain vulnerabilities, the global packaging sector experienced robust merger and acquisition (M&A) activity in the first half of 2025. This surge is largely driven by demand from food and beverage, e-commerce, and healthcare industries, which are increasingly reliant on reliable and efficient packaging solutions [1].

Investors are particularly focused on assets that align with sustainability mandates and digital transformation. Firms with strong environmental credentials are commanding premium valuations. For instance, Amcor's $8.4 billion acquisition of Berry Global, finalized in April, signals the strategic value placed on sustainable plastic packaging and healthcare applications [1].

Automation and compliance capabilities are also key drivers of deal interest. ProMach's May 2025 acquisition of DJS Systems, a specialist in disposable foodservice packaging, reflects ongoing interest in equipment and turnkey solutions that help brand owners meet Extended Producer Responsibility (EPR) and Plastic Packaging Tax thresholds [1].

Moreover, rising regulation is reshaping deal priorities. With regulations tightening across global markets, dealmakers are increasingly prioritizing compliance capabilities and recyclability metrics. The impending rollout of UK EPR fees in October 2025 is reshaping domestic M&A strategy [1].

PepsiCo, a major player in the food and beverage sector, has announced ambitious plans to banish virgin fossil-based plastic in its entire range of crisp and chip bags by 2030. This move underscores the growing commitment to sustainability in the packaging industry [2].

The packaging sector's resilience is supported by structural demand in everyday essentials, combined with regulatory tailwinds and technology convergence. According to RL Hulett, deal volumes climbed from 62 in Q1 to 69 in Q2, driven by strategic and private equity interest across North America and Europe [1].

The median EV/EBITDA multiples for strategic acquirers held around 7.5×, while private equity buyers pushed valuations closer to 15× in high-growth segments. With global buyers chasing sustainable scale, cost-saving automation, and compliance expertise, the packaging M&A surge is expected to continue into H2 2025—albeit with sharper focus and more selective capital deployment [1].

References:
[1] https://www.packaging-gateway.com/news/more-packaging-firms-attract-buyers-in-ma-surge/
[2] https://www.csrwire.com/press_releases/736431-pepsico-has-thirst-circular-economy-goal