Flexible Packaging Newsletter - Q2 2021

TKO Miller Market Analysis 

Despite a dramatic increase in raw material prices and a shortage of qualified labor, the flexible packaging industry continues to prosper. As of the end of Q2-2021, TKO Miller’s Flexible Packaging Index was up 43.1% compared to the end of Q2-2020. This compares favorably to the 37.9% growth in the S&P 500 index over the same period. The industry continues to see strong demand and shifting consumer preferences, creating growth in the industry as well as opportunities for innovative solutions. We tip our hat to all business owners trying to figure out the best path forward in developing packaging solutions that address eco-sustainability while maintaining product uniqueness, quality and durability, all the while battling significant raw material price increases, pandemic-related labor shortages, and other operational constraints

Flexible packaging M&A activity has expanded its positive momentum during Q2-2021, building on the strong transaction activity experienced in Q1-2021. As expected, transaction volume is significantly higher than Q2-2020, the harshest months of COVID-19 lockdowns. According to Capital IQ, the number of closed global flexible packaging deals in Q2-2021 grew by 73% over Q2-2020. Public flexible packaging company valuations grew by 16% from Q2-2020 and 2% from Q1-2021. M&A markets remain extremely active, with surging activity expected into the second half of 2021 based on strong numbers of eager buyers motivated by record levels of dry powder and well-performing sellers propelled by potential tax reform.

Recent Flexible Packaging News 

By Joe Froehlich on Aug 10, 2021 10:46:10 AM