Print and Packaging M&A Update

Print and Packaging M&A Update

By Anthony Contaldo

April 24, 2015

Color PrintingAccording to a report from international consulting firm Ernst and Young, M&A activity in the print and packaging sector is expected to sustain well into 2015 driven by industry continued growth, cross-border transactions and strong interest from the private equity looking for add-on acquisitions.

During According to First Research, an industry research organization, Global demand for folding cartons used in product packaging is forecast to grow more than 5 percent per year, reaching a value of $184 billion by 2018, according to paper and packaging research firm Smithers Pira. Growth will be led by rising demand in emerging markets for health care products, dry foods, frozen and chilled foods, and cigarettes; folding carton growth in developed markets is forecast to be relatively slow. Key trends that are expected to drive future growth for folding cartons include migration barriers that prevent printing inks and other chemicals from contacting foods, downsized packaging designs, and single-serving packs. Smart packaging – enabled by low-cost printed electronics – will soon allow companies to convey product information electronically on cartons. Key factors driving demand for smart packaging include an aging population, rising global affluence, and greater concern about product tampering.

Posted by Anthony Contaldo.

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