Key Packaging Industry Trends in 2026

Packaging distributors are well-positioned to capitalize on several favorable market trends driving growth, according to an industry report released by the Packaging investment banking team at Brown Gibbons Lang & Company (BGL).

The packaging distribution M&A market is very active, and private equity platforms are aggressively consolidating the sector. Significant fragmentation and ample runway across both primary and full-line distribution subsectors create significant roll-up opportunities, while the asset-light model, recurring revenue streams, and diversified customer base align well with buy-and build strategies.

Key trends driving a long runway for growth and M&A activity include a focus on sustainability & ESG, the growth of e-commerce and omnichannel retail, design, and smart packaging, and technology automation.

BGL Provides a Deeper Dive into the 2026 Packaging Industry M&A Trends:

Technology & Packaging Automation Trends

• Brands are investing in packaging machinery and automation to offset labor shortages and improve throughput.
• Equipment decisions are increasingly tied to sustainability, waste reduction, and flexibility.

Packaging Vendor Consolidation

• CPGs and retailers are reducing supplier counts to cut costs and complexity.
• Consolidation also helps align ESG compliance, reporting, and innovation partnerships.
• Scale and breadth make distributors natural consolidation winners

SKU Complexity

• Large CPGs are trimming portfolios, but e-commerce and challenger brands continue to drive variety through innovation cycles.
• Distributors can provide agility for large CPG brands to scale without heavy infrastructure investments
• Seasonal launches, private-label growth, and channel-specific packaging sustain complexity.

Packaging 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.
• Distributors can serve as ESG advisors and ensure brands remain compliant with ever-changing regulatory requirements

E-Commerce Growth

• Growth of DTC and omnichannel retail requires packaging that is durable, lightweight, right-sized, and sustainable.
• Parcel volume growth and consumer expectations are driving continuous packaging innovation.
• Packaging distributors can support specialty formats (e.g., subscription boxes, influencer kits) that carry higher margins.

Smart Packaging Trends

• 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 distributors can be positioned as long-term innovation partners as digital transformation budgets expand.

Packaging Design

• Packaging serves as a brand’s “silent salesman,” shaping consumer choice at the shelf and online.
• Functionality (re-sealability, portion control) and aesthetics (premium finishes) are key differentiators.
• Distributors can capture growth from premium and niche brands seeking
• differentiated shelf presence.

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
• Packaging distributors can

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.