The rise of convenience stores, discounters and online sales of goods and food is fuelling global demand for packaging solutions, even in today's climate of economic uncertainty. In fact, the sector's structural growth drivers and healthy cash flows mean it's one of the few currently capable of lifting investment portfolios, a rare status that's helping to dispel packaging's reputation as a dull industry.
Management teams operating across this vibrant sector have not been resting on their laurels, either. Most have taken advantage of an inviting backdrop by investing in existing product ranges, acquiring well-suited businesses to broaden reach and expertise and bumping up prices. The latter has mainly been achieved not only because of rampant demand, but also as a result of tightening supply owing to a raft of big mergers.
That includes Ball Corp's (US:BLL) soon-to-be-completed takeover of rival can maker Rexam (REX). The European Union's competition watchdog recently approved the £4.4bn acquisition after Ball satisfied competition concerns by selling 12 production plants on the continent.