Packaging firms that serve e-commerce, health care and food and beverage are in position to retain demand during the COVID-19 crisis, according to a recent report from financial firm Capstone Headwaters.
Officials with Boston-based Capstone said in the report that global economic turmoil in response to the COVID-19 pandemic is impacting supply chains and consumer spending patterns.
"As countries move to quarantine their populations, many consumers increasingly seek e-commerce pathways to evade brick-and-mortar purchases for nondiscretionary items such as household staples, groceries and medical supplies," they said.
Capstone officials cited Amazon's recent decision to hire 100,000 more warehouse workers as proof of the trend. Businesses that offer cold chain, pharmaceutical and medical supply packaging solutions are poised to foster sustained demand, they added, as consumers alter spending habits in favor of e-commerce channels.
Capstone tracked 55 packaging M&A deals in the first quarter of 2020, up from 32 during the same quarter in 2019. Strategic buyers have comprised the majority of deal activity year-to-date, officials said, accounting for nearly 55 percent of transaction volume. Private equity buyers have comprised 45 percent of total deals.
Capstone has worked on multiple plastic packaging deals, including Berry Global Group's acquisition of film and bag maker Laddawn Inc. in 2018.