Packaging and Labeling Services NAICS 561910

Jan 26, 2026 - Packaging M&A Activity to Shift in 2026

• Packaging M&A activity is expected to hold steady or rise slightly in 2026, creating ripple effects for packaging and labeling services as companies pursue growth in a slower volume environment. Analysts say dealmaking will shift toward smaller transactions, divestitures, and portfolio refinement as firms respond to weak stock prices, limited organic growth, and lower interest rates, Packaging Dive Reports. This environment could spur demand for outsourced packaging and labeling services as companies streamline operations, shed non-core units, and integrate newly acquired assets. Private equity is positioned to play a larger role as many holdings near the end of their investment cycles, potentially accelerating carveouts that require new service partners. With consolidation likely across sectors such as boxboard, glass, and value-added materials, service providers may see increased opportunities tied to reconfigured supply chains, shifting customer needs, and a renewed focus on efficiency, sustainability, and value creation.
• Bain’s 2026 Paper and Packaging Report warns that structural overcapacity, volatile costs, and soft demand are pushing producers to make sharper capacity decisions, adopt AI-driven efficiency tools, and strengthen commercial discipline. These shifts could influence packaging and labeling services as manufacturers streamline networks, close or convert sites, and pursue M&A to rebalance assets and focus on profitable segments. AI-enabled maintenance and data-driven commercial tools promise lower costs and better throughput, which may prompt brand owners and converters to seek service partners that can support faster changeovers, tighter cost controls, and more precise SKU management. As companies target profitable customers and products, demand may rise for labeling and packaging services that offer flexibility, automation support, and sustainability features. The report suggests that competitive pressure and consolidation will continue to reshape service needs across the packaging value chain.

• Private labels are gaining ground in the retail market, as store brands outpace national brands, according to Packaging Dive. At the Private Label Manufacturers Association trade show, speakers emphasized that packaging companies play a central role in this expansion, with shelf-ready packaging driving efficiency and enhancing consumer appeal. In the first 11 months of 2025, store brand unit sales increased 0.4%, while national brands declined 0.7%, according to market research firm Circana. Over the same period, dollar sales of store brands rose 3.6%, while national brands grew just 1.1%. Packaging manufacturers are seizing opportunities by partnering with private label producers and co-packers, showcasing innovations such as flexible pouches, fiber-based tubs, compostable lids, and child-resistant caps. As shoppers trade down to store brands amid economic uncertainty, packaging services are becoming a critical differentiator, enabling private labels to compete on quality, innovation, and value.
• The global packaging market is valued at $1.2 trillion and is projected to grow at a compound annual rate of 3.5% through 2030, according to market research firm Smithers. Markets in North America, Europe, and Australasia are expected to underperform global growth due to market maturity. Asia, Africa, and the Middle East are expected to outpace the global average growth due to their large and growing populations, as well as favorable demographics.