BGL Examines Five Packaging Market Growth Trends Fueling Distributor Advantage

Distributors are aligned with packaging sector growth trends, with the channel expected to outpace growth of the overall market. The distribution M&A market is very active, and private equity platforms are aggressively consolidating the sector, according to an industry report released by the Packaging investment banking team at Brown Gibbons Lang & Company (BGL).

Here are five trends in the packaging market:

Sustainability & ESG

• Regulators, retailers, and consumers are forcing a shift toward recyclable, compostable, and lightweight packaging
• Brands are tying packaging sustainability to brand equity and corporate ESG targets

E-Commerce Growth

• Growth of DTC and omnichannel retail requires packaging that is durable, lightweight, right-sized, and sustainable
• Parcel volume growth and consumer expectation are driving continuous packaging innovation

Smart Packaging

• Adoption of QR codes, RFID, NFC tags, and freshness sensors is rising in food, pharma, and consumer products
• Packaging is becoming both a marketing and data collection tool

Packaging Design

• Packaging serves as a brand’s “silent salesman,” shaping consumer choice at shelf and online
• Functionality (resealability, portion control) and aesthetics (premium finishes) are key differentiators

Outsourcing Supply Chains

• Brands are outsourcing packaging, warehousing, and logistics to simplify operations and focus on core competencies
• Rising complexity of multi-channel fulfillment is accelerating outsourcing demand

Read our full packaging M&A report that outlines how distributors are capitalizing on market growth trends and the notable transactions that signal growing participation by strategic and financial investors in the packaging distribution market.

Contact Our Packaging Group

BGL’s Packaging investment banking team brings decades of transaction experience and deep industry expertise across a wide range of substrates, formats, end markets, and business models. We offer a nuanced understanding of the trends driving sector growth and the key differentiators that set leading businesses apart. Our approach blends sector-specific insight with extensive global relationships and world-class transaction execution to guide clients through packaging M&A, divestitures, and capital raises.