Key Takeaways from Pack Expo 2023

Managing Director Jonathan White shares his key takeaways from Pack Expo Las Vegas, where the mood was slightly subdued due to flattish volumes reported by companies across the Packaging Industry. Lower volume was somewhat mitigated by improved margins resulting from decreases in cost inputs, which have yet to be passed along to customers. However, customers will eventually be clawing back these cost decreases, and Mazzone is keeping a close eye on the timing of these claw backs versus the rebound in volumes to determine the best time for our clients to enter the marketplace.

In our latest edition of Industry Insights: Global Packaging, we noted that Packaging Industry transaction volume and pricing have been down, and this was reflected anecdotally by companies we spoke with at Pack Expo that have transactions lingering in the marketplace due to the bid-ask gap between buyers and the sellers. Mazzone believes buyers are being conservative on valuations due to aforementioned low volumes and a concern over margins—with cost input decreases impacting margins in the present, is the data sufficiently transparent for the buyer to understand the sustainable margin of the business going forward? We saw indications of rebounding activity late this summer but don’t anticipate a sustained shift until Q1 of 2024 when mounting pressures to complete transactions force dealmakers to find a way to get the deal done.