After registering a 14.89% increase in Gross Production Value (GPV) last year, reaching R$165.9 billion according to data from the Brazilian Packaging Association, the Brazilian packaging industry is expected to continue growing in 2025, with positive prospects for asset purchase and sale transactions. According to a survey by Redirection International, specialized in mergers and acquisitions (M&A) advisory, only in 2025, six transactions involving companies in the sector have already been recorded. In the last two years, 23 operations have been announced to the market.
The survey considers all negotiations involving companies that operate in the production and distribution of materials that protect, preserve, and display products. "Despite the more challenging macroeconomic scenario, with rising inflation and high interest rates, we expect the Brazilian packaging market to continue on a growth trajectory in 2025, driven by domestic consumption, agribusiness, and exports, especially with the depreciated exchange rate favoring the national industry," explains economist Gabriel Loest Cardoso, partner at Redirection International and one of the study's authors, recalling that the sector has been growing at healthy rates, with an estimated growth of 4.2% per year until 2029 according to Mordor Intelligence.
In addition to structural factors, the positive market projection is also based on changes in consumer profiles, both in Brazil and abroad, with the advancement ofdeliverythe increase in the consumption of processed and packaged foods, the search for functional and innovative packaging, and the preference for environmentally sustainable packaging, made from recycled materials or refills, for example.
We observe a new global trend in the sector, guided by the '4Es' of packaging innovation: E-commerce, Efficiency, EnvironmentEnvironment) and Engagement. In this context, M&A becomes a strategic tool to accelerate growth, optimize pricing, and adopt strategies of'right-sizing'to generate operational synergies. We see demands and acquisition opportunities for medium-sized companies in the sector. Among the features that increase the attractiveness of these companies, I would highlight the size/relevance of operations, revenue above R$80 million, a diversified client portfolio, focus on special packaging, a good level of governance, and efficient operations, resulting in good margins," emphasizes the economist.
According to the survey, M&A transactions recorded in the Brazilian packaging industry over the past two years involved both domestic companies acquiring other companies in Brazil or abroad, as well as international investors seeking Brazilian assets. With the market still fragmented, the country also presents opportunities forplayersMinors expand innovation and scale their business model through mergers and acquisitions.
"The packaging sector, especially corrugated paper and cardboard, remains attractive for consolidation, with a focus on applications in food and beverages, cosmetics, medical and industrial packaging," emphasizes Gabriel Loest Cardoso.
Among the movements mapped by Redirection International are Suzano's expansion – which intensified its international presence in 2024 with the acquisition of two Pactiv Evergreen factories in the United States – and the transactions carried out by Klabin to consolidate its leadership in the sustainable packaging segment in 2024.
