The labels subsector of the packaging ecosystem continues to capture investor attention thanks to steady demand across a variety of product types and end markets. Supported by several long-term growth drivers—from SKU proliferation to the rise of smaller, more complex packaging formats—this fragmented $45 billion market is expected to expand at a 4.6% CAGR through 2029.¹

The low-cost, high-impact value proposition of label companies is clear: Labels are essential to build brand recognition, communicate information, and improve customer engagement. In addition, labels can perform a range of other critical functions related to adhesive applications, security and tamper prevention, data generation, product traceability, and more.

In this attractive space, leading providers are differentiating themselves by bringing a broader portfolio of innovative and value-added capabilities to the table. “The best label businesses are doing more for their customers while offering customized solutions for decorations, colors, materials, applications, security, and technology,” says Ty Denoncourt, a managing director in our Industrials Group.

“For example, tech-savvy providers can enhance a user’s experience and gain valuable data through RFID, QR codes, smart labels, and product traceability, making them highly sought after,” adds Chuck Walter, a director.  

Within labels, key areas for investors to watch include digital printing and online labels. These fast-growing segments provide quick solutions for clients seeking optionality related to SKUs, short-runs, branding, and customization. And with a growing number of small and medium-sized businesses and an expanding e-commerce market needing these services, both categories are poised for prolonged success.

“Many segments throughout the labels landscape are well positioned for M&A,” says Walter. “We’re excited to see providers that align with these themes gaining strong investor interest.”  

In our new report on the labels subsector, we share:

• A labels market overview 

• Why labels are on investors’ radar 

• Label taxonomy 

• Recent M&A activity in the space 

• Notable label trends 

• Select participants across the labels ecosystem 

To further discuss M&A opportunities in packaging and the labels subsector, please contact our senior professionals.

¹ Smithers