Packaging and Labeling Services NAICS 561910

Jul 28, 2025 - Uncertainty A Headwind for Packaging M&A Activity

• Mergers and acquisitions activity in the packaging manufacturing sector saw little year-over-year growth in the first half of 2025, as shifting US trade policy led to economic uncertainty, according to PwC. Amid ongoing tariff uncertainty, destocking trends, weaker packaging volumes, and high interest rates, M&A activity in the second half of 2025 is expected to remain at levels seen in the first six months of the year. However, PwC expects packaging-related M&A deals to pick up in Q4 and into 2026, as the impact of tariffs becomes clearer and interest rates begin to move lower.
• The global packaging labels market is valued at $48.3 billion in 2025 and is forecast to post average annual growth of 3.6% through 2030 to reach $57.5 billion, according to market research firm Smithers. Label and packaging sleeve volumes are projected to increase from 83 billion square meters in 2025 to 99.1 billion square meters by 2030. Growth will be driven by brand owner investments in new printing technologies, more sustainable label and film stocks, and smart packaging. With a market share of nearly 62%, pressure-sensitive labels are the most popular product category, followed by wet glue labels. Printed sleeves are the leading alternative to labels, and their use is growing, primarily among soft drink producers. Food, soft drinks, and alcoholic beverages are the largest users of labels, accounting for two-thirds of the market.

• Durable goods orders – a demand indicator for packaging and labeling services – fell in June as orders gave back some May gains that were driven by demand for Boeing aircraft. June durable goods orders decreased 9.3% from May, slightly better than an 11.1% decline forecast by economists polled by The Wall Street Journal. The drop in durable goods orders was led by a 51.8% decline in orders for nondefense aircraft and parts. June’s durable goods orders increased 4.4% year-over-year. On a year-to-date basis, new orders for durable goods increased 7.9% in the first six months of 2025 compared to the same period in 2024.
• US manufacturing growth is expected to slow in 2025 amid trade strife, inflation, and geopolitical uncertainties, according to the Institute for Supply Management’s Spring 2025 Supply Chain Planning Forecast. Manufacturing revenue is forecast to rise by 0.1%, 4.1 percentage points below the ISM’s previous forecast released in December 2025. Just over a third of the ISM survey respondents said they expect revenues to increase in 2025, 22% said revenues will fall, and 44% expect no change. Capital expenditures are projected to decrease by 1.3% in 2025, a significant drop from a 5.2% rise forecasted in the ISM’s December 2024 report. Manufacturing activity is a leading demand driver for packaging and labeling services.