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 US trade policies and general market uncertainty. says Mazzone & Associates in its latest Industry Insights report.  No negative impact is yet visible in the packaging M&A-deal data through April, but Mazzone does expect closings to slow in the near-term for certain players.

Some topics from the report:

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 (<$50 million in 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, with sponsor platforms (LBOs) showing the strongest growth compared to early 2024 (see bar chart above). Deal Size Trends: Most transactions involved smaller companies (<$50 million in revenue). Larger deals remain scarce and highly competitive. 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 (US entities securing Canada operations and vice versa), and enhancing product portfolios.