Shifting Sands: M&A Trends, Closures, and the New Reality for the Packaging and Printing Industry

The packaging sector has maintained its position as the most active segment for five consecutive years, yet the public transaction count is showing signs of cooling off.

• Labels Cool Down: The label printing segment, previously a powerhouse driven by Private Equity (PE) investment, has seen a clear slowdown. Only 16 transactions were recorded in the last 12 months, a sharp drop from 41 in 2022.
• Flexibility and Strategic Focus: While acquisition numbers for corrugated and folding carton are down, the core buyer motive remains capacity expansion. Notably, large international groups like International Paper are accelerating massive capacity rationalization and restructuring. Unlike these macro adjustments, we specialize in providing highly customized paper-based packaging solutions for small and emerging brands. Our ability to handle small batch runs, multi-batch orders, and rapid prototyping makes us the ideal choice for brands navigating a fast-moving market that demands high flexibility and quick response times.
• Private Equity (PE) Interest: PE involvement remains robust and stable, accounting for 51% of all packaging transactions—a percentage unchanged from the previous year.
• Industry Health: The packaging segment exhibits a strong negative correlation between high transaction volume and low closures, confirming a healthy selling environment and relatively firm valuations amidst continuous consolidation.

The commercial printing market is displaying stronger signals of underlying strain, despite a stable overall transaction volume.

• The Rise of Tuck-Ins: The proportion of “tuck-in” acquisitions—where the buyer merges the seller’s client base into existing operations and generally avoids taking on trade and other debts—has surged to 42%. This notable increase often signals rising overcapacity and acute financial pressure.
• New Capital Cautious: Private Equity interest in commercial printing has significantly cooled, with no new PE-backed platform projects announced in the past year, reflecting a consensus of caution.
• Pricing Power Shifts: Business owners report that 2025 has been “challenging.” Paper supply issues have largely disappeared, and pricing power has generally “returned to the buyer.”

The wide-format sector remains mature and steady, with 21 public transactions recorded in the last 12 months, matching the previous year.

• Shifting Differentiation: Competitive advantage is migrating from “first-mover advantage” to online direct-sales capability, planning and installation expertise, and value-added applications.
• Experiential Graphics Accelerate: A notable trend is the acceleration of Experiential Graphics, which combines high-quality printing with structural components, sound, lighting, and interactivity to create immersive brand experiences.

The most critical development is the simultaneous rise in business distress, underscoring the “shakedown” referenced in the article’s title.

• Bankruptcy Filings: Bankruptcy filings are moderately rising, with Commercial Printing once again leading the sectors in total filings.
• Non-Bankruptcy Closures Hit 13-Year High: Non-bankruptcy plant closures reached 61 events in the past 12 months. This dramatic rise is linked to structural restructuring in the paper industry and the resulting associated box plant closures.
• Our Resilience Matters: As the data shows, the industry is undergoing a severe shakeup, and the risk of supply chain disruption or a supplier’s sudden failure is rising. For us, this means more than just market vigilance; it means proving our financial resilience and supply chain stability to our clients. We continuously optimize our internal processes to ensure our clients never have to worry about sudden production halts or delivery interruptions. Choosing a long-term, reliable paper packaging partner is the essential first step in de-risking your own business.

The post-pandemic boom has ended. With high financing costs, the return of pricing discipline, and increasing industry consolidation, companies must find new avenues for profitable growth.

We believes that in the paper packaging sector, “value” will ultimately supplant “low price” as the core competitive advantage.

We don’t just produce high-quality corrugated and folding cartons; we also offer specialized services in sustainable design consultation, packaging structure weight reduction, and supply chain optimization.

Are you ready to meet the challenges of this new market cycle?

We invite you to share the biggest packaging challenge or supply chain pain point you’ve faced in 2025 in the comments below. Is it cost pressure? Delivery volatility?

Leave your insights below and let us help you find the smartest packaging strategy for the “New Normal.”