Flexible Packaging Newsletter - Q2 2019

TKO Miller Market Analysis 

• Valuations within the flexible packaging market continue to climb as strategic and financial buyers search for new markets, synergies, and enhanced equipment and capabilities.
• TKO Miller’s proprietary Flexible Packaging valuation index (see below) saw a 10 percent increase in Q2, signaling rising valuations for publicly traded companies in this sector.
• The use of flexible packaging is expected to grow in every category of the food segment besides tobacco due to the increased consumption of processed foods and beverages, new product innovations, and environmental advantages.
• Sustainability through the use of recyclable and compostable materials continues to be a key industry theme with many brand owners and retailers pledging to reduce the use of virgin plastics in their packaging – often as much as 50 percent. However, current recycled plastic content levels are less than 10 percent for the most common plastics. U.S. recycling rates cannot meet the demand, with current plastic recycling rates at an estimated 14 percent [Flexible Packaging Association Publication; Recycling Today].
• Despite supply constraints, flexible packaging remains the fastest growing segment of packaging in the U.S., growing from $23.2B to $31.8B from 2009-2018.

Recent Flexible Packaging Transactions

By Joe Froehlich on Jul 23, 2019 7:05:00 AM