The rapidly evolving packaging market holds the potential for growth, according to a market expert on printweek.com.
Nicholas Mockett, partner at corporate finance house Moorgate Capital, says that the transient printing market will likely see a spike in mergers and acquisitions (M&A). In traditional print and publishing, Mockett says that this is likely to come from mature players, such as newspapers, ‘coming together to realign [supply] with the prevailing levels of demand’.
As for printed packaging, Mockett believes that the market is likely to grow, which, again, will stimulate M&A activity.
“These companies will come together for the usual reasons: synergy, access to one another’s customers, a broader geographic foot, one-stop supply of various products, integration and access to complementary technologies,” Mockett explains.
The market analyst predicted that the only two substrates of packaging that are not likely to see high levels of M&A activity are glass and metals, due to their ‘maturity and capital intensity’.
However, other segments of the market, such as plastics, labels and board, were more likely to see mergers and acquisitions taking place.
Foodproductiondaily.com reported that more than half of all consumer packaged goods M&A activity involved food-based companies in 2012.
Finally, Mockett claims that packaging will play a more central role in marketing and thus lead to increased M&A activity. Pointing to the current landscape, he said: “Given the fragmentation of media which has had an impact on traditional print channels, the role of packaging in the marketing mix is increasing.”