Global Packaging M&A activity levels through the year-to-date have dipped below pre-pandemic levels experienced in 2019 and 2018. The lower deal volumes experienced for the first 5 months of 2022 could be the result of fewer sellers or the activity levels experienced in 2021. Another reason could be the higher input costs of all types.

The market in APAC countries is projected to grow at the highest rate from 2021 to 2026. This can be attributed to the growing population in India and China as it presents a huge customer base for FMCG products and consumer durables.

Intermediate bulk containers (IBCs) and clamshells have been identified as the most commonly utilized product types, as they may be utilized for a variety of end-use industry applications. With a forecast market share of 18% in 2022, IBCs control the substantial share of the rigid plastic packaging market.

Increasing pressure on sustainability. Consumers, CPGs, and governments are pushing for sustainable packaging (e.g., corporations’ sustainability commitments, increase in regulations and policies – plastic and single-use bans). This gives potential growth opportunities for manufacturers of rigid plastic packaging over other materials.

Over the LTM period, input costs of all types have risen putting pressure on the profitability of packaging companies. Most notably, resin costs, a packaging company’s large cost category, saw material rises in the LTM, which has led to some companies placing M&A ambitions on pause until calmer periods arrive.