Key Trends Driving M&A in the Label & Packaging Sector

Ahead of attending London Packaging Week 2026 (16-17 September), Matt Scott, Partner at Translink Corporate Finance, shares his perspective on the key trends shaping the label and packaging sector.

Drawing on Translink Corporate Finance’s experience of completing more than 20 international transactions in the market since 2020, Matt explores the factors underpinning M&A activity and investor appetite across the industry.

Key drivers of M&A activity in the label and packaging sector

The label and packaging sector has continued to attract M&A activity in recent years. Whilst market conditions have become more challenging and transaction volumes have moderated from the post-pandemic peak, strategic buyers and private equity investors remain active, supported by the market’s resilience and long-term growth characteristics.

Packaging plays a critical role across consumer and industrial supply chains, helping to underpin investor appetite despite a backdrop of economic uncertainty.

Sustainability, innovation and operational excellence have become increasingly important investment themes. Businesses with differentiated technologies, specialist expertise and the ability to help customers respond to evolving regulation and changing consumer expectations continue to attract interest.

Acquisitions remain an important strategic tool, enabling buyers to strengthen market positions, access new capabilities and increase exposure to attractive end markets.

Consolidation remains a key driver

Despite significant transaction activity, the label and packaging market remains highly fragmented, creating ongoing opportunities for consolidation.

Strategic buyers continue to use acquisitions to broaden their customer offering, enhance capabilities, enter new markets and achieve greater scale.

The pace of consolidation is evident across both the packaging and labels markets, with major transactions such as Smurfit Kappa’s merger with WestRock and Amcor’s acquisition of Berry Global highlighting the strategic importance of scale, geographic reach and broader product portfolios.

Within the labels sector, acquisitive groups have continued to expand through strategic acquisitions, underlining sustained demand for high-quality businesses with specialist capabilities.

The UK has been a particular focus for inbound investment over the past five years. Private equity-backed groups such as Asteria (Waterland), All4Labels (Triton) and Ettiketto (Volati), alongside privately owned international businesses including Autajon and Printeos, have completed platform and follow-on acquisitions in the market.

Illustrative Inbound Investment in the UK Label Market

Sustainability and innovation

Sustainability has become a significant investment theme, driven by changing consumer preferences, customer requirements and increasing regulation. As businesses adapt to these trends, demand for more sustainable packaging formats and materials has created opportunities across multiple packaging segments, with many investors viewing the transition as a long-term structural growth opportunity.

Innovation is equally important, with buyers increasingly seeking capabilities such as smart packaging, radio-frequency identification, automation and traceability solutions that improve efficiency, enhance brand value and address evolving market needs.

Recent acquisition activity has reflected these priorities, particularly in healthcare labels, smart labelling technologies and sustainable packaging solutions.

Challenges along the way

Whilst M&A activity has remained resilient, the sector has not been without its challenges.

In the years following the pandemic, supply chain disruption, raw material shortages and logistics constraints created significant operational pressures. More recently, rising energy and labour costs, together with inflation across key inputs, including paper, films, inks and adhesives, have tested pricing strategies and placed pressure on margins.

Alongside these challenges, businesses have needed to navigate sub-optimal integration, evolving sustainability demands and an increasingly complex regulatory landscape, including Extended Producer Responsibility (EPR) and the Packaging and Packaging Waste Regulation (PPWR).

These conditions have increased the complexity of financial due diligence, particularly when assessing sustainable earnings. In some cases, transaction structures have incorporated earn-out mechanisms to bridge valuation expectations and manage uncertainty.

The outlook for M&A in the label and packaging sector

The long-term drivers of M&A in the label and packaging sector remain firmly in place. Although transaction volumes and average deal multiples have softened from the highs seen following the pandemic, demand for high-quality businesses with attractive market positions, specialist capabilities and strong financial performance remains healthy.

Recent transactions continue to demonstrate the importance of scale, portfolio optimisation and sustainability-led innovation.

For shareholders considering a future transaction, preparation remains critical.

Businesses that can clearly articulate their growth story, demonstrate operational strength and undertake thorough preparation ahead of a process are often best placed to maximise value and achieve the strongest outcome.

At Translink Corporate Finance, we remain actively involved in label and packaging M&A, having advised on more than 20 international transactions across the sector since 2020.

Through this activity and our ongoing dialogue with leading international acquirers, investors and management teams, we gain valuable insight into evolving buyer priorities, acquisition strategies and market dynamics.

Whether you’re attending London Packaging Week or simply interested in discussing the opportunities and challenges shaping the sector, we’d be delighted to connect and exchange views. Contact Matt on mscott@translinkcf.uk.com