Packaging and Labeling Services NAICS 561910

May 27, 2026 - Iran War Pushed Plastic Packaging Prices Higher

• Packaging Dive reports that the war with Iran is driving sharp increases in plastic prices, supply disruptions, and prolonged instability across global packaging supply chains. Polyethylene and polypropylene costs have risen rapidly, and some manufacturers of flexible plastic packaging have implemented price hikes. These conditions could significantly strain the packaging services industry by increasing input costs, limiting material availability, and forcing companies to raise prices, delay production, or reconsider sourcing strategies. The conflict has tightened resin supply, disrupted petrochemical infrastructure, and slowed shipments through key routes like the Strait of Hormuz, while North American producers face rising demand and export pressure. Experts warn impacts could persist into 2027, with potential shortages, margin pressure, and long-term market turbulence affecting converters and suppliers alike.
• The Sustainable Packaging Coalition's (SPC) Impact 2026 event drew more than 800 packaging professionals to Nashville in April to address policy, materials, and recovery challenges shaping the industry’s future, according to Packaging World. Hosted by GreenBlue, the conference featured 45 sessions focused on looming policy deadlines, shifting material choices, and evolving recovery systems. Extended Producer Responsibility dominated with 12 sessions, while flexible films, paper packaging, and composting also received significant attention. Opening on Earth Day, GreenBlue executive director Paul Nowak called 2026 the "Year of the Relationship," urging realistic optimism, practical action, and collaboration. Speakers emphasized that progress depends on coordination among brands, suppliers, policymakers, and recovery systems, as companies work to turn sustainability goals into functional, scalable solutions.

• In March, the USDA terminated the Paper and Packaging Board, ending a decade-long marketing program funded by manufacturers and importers to promote paper-based packaging, according to Packaging Dive. A recent referendum failed, with only about 26% of eligible participants, representing less than 10% of volume, supporting continuation. The program, funded by a 35 cents-per-ton fee paid by large, US-based manufacturers and importers of paper and paper-based packaging, had a $20 million budget in 2025 and helped drive demand, including an estimated 1.1 million short tons of annual packaging consumption from 2019 to 2023. For the packaging and labeling services industry, the shutdown removes a key source of coordinated marketing that boosted paper-based packaging adoption and supported the shift away from plastics. Companies may now need to increase their own marketing and innovation efforts to sustain demand and maintain momentum for paper packaging.
• 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.