2025 PACKAGING M&A OUTLOOK CONT.
Market & Consumer Trends:
While we expect consumers to continue to push for sustainable packaging solutions, we anticipate that regulatory pressure will weaken under the new administration and may shift corporate priorities toward profitability over recyclability. For example, critics slammed Coca-Cola’s latest sustainability report for omitting its 25% reusable packaging target by 2030, arguing the decision weakens global circular economy efforts and highlights the need for stricter corporate environmental initiatives. Packaging design will further adapt to e-commerce, driven by the need for differentiation, efficiency, and cost reduction. Fit-to-Product (FTP) and Box-on- Demand systems will redefine how corrugated packaging companies create custom- sized boxes that better fit their products and reduce waste. M&A Trends: We expect an uptick in packaging deal activity driven by a much more favorable M&A landscape for 2025, including: Expected interest rate moderation, which will improve deal financing Stabilized rates that will help bridge the gap between buyer/seller valuations Continued strategic consolidation/divestiture of non-core assets Strategic buyers focused on capability/technology gaps PE firms seeking add-ons for existing platforms PE firms exiting pre-COVID platform investments With reported private equity average holding periods nearly exceeding six years, an increase in private equity exits is expected in 2025. A bounce back in exits in late 2024 put an end to 36 months of suppressed PE-owned portfolio company exits.
North American Private Equity Exits
1,000 1,500 2,000
0 500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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Source(s): Pitchbook
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