Industry report: Packaging

The UK packaging sector continues to attract strong interest from investors and acquirers. Stable demand, a fragmented market and increasing sustainability requirements are reshaping the competitive landscape and driving consolidation.

In our latest industry report, Partner William Abell and Director Matthew Ball spotlight the strongest market drivers, regulatory shifts, and deal activity shaping this rapidly evolving industry.

Key takeaways from the packaging report include:

• Large, resilient market – The UK packaging industry generates c. £11 billion in annual manufacturing turnover, underpinned by non-discretionary demand across food, beverage, healthcare, and e-commerce end markets.
• Regulatory-driven transformation – EPR, the Plastic Packaging Tax, and the forthcoming Deposit Return Scheme are reshaping competitive dynamics, with recyclability credentials increasingly driving valuations in M&A processes.
  
• Favourable outlook for quality assets – Improving financing conditions and PE dry powder are supporting deal flow. Well-prepared assets – with earnings visibility and compliance maturity – are commanding the strongest interest.
• Sustained M&A activity – Mid-market consolidation remains active into 2026, with financial sponsors and strategic acquirers competing for assets with strong sustainability credentials and recurring customer relationships.
  

Last updated: 03.06.2026