PACK EXPO 2026 Roundup: Packaging Key Themes
PACK EXPO International 2026 brought together more than 43,000 attendees and over 2,700 exhibitors in Chicago for four days of innovation, industry discussions and networking. The conference showcased the latest developments in packaging materials, processing technologies and automation while providing an opportunity for industry participants to exchange perspectives on the evolving market environment. Members of Lincoln International’s packaging team attended the conference, met with business owners and investors and hosted a reception for clients and industry contacts.
Conversations throughout the week reflected a packaging industry navigating mixed operating conditions, with companies balancing continued cost pressures and uneven demand against opportunities for growth, innovation and strategic investment. While challenges remain across select end markets, discussions with industry participants suggested a more optimistic outlook than in previous years, particularly as investors increasingly evaluate opportunities for consolidation and renewed mergers and acquisitions (M&A) activity heading into 2027. Below are five key themes from the conference and conversations with packaging industry participants.
Summary
- Lincoln International’s packaging team unpacks five key themes from PACK EXPO 2026 and conversations with industry leaders.
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Mixed Market Conditions and Demand Trends
Operating conditions across the packaging industry remain mixed, with performance increasingly dependent on substrate, product category and end market exposure. Certain packaging segments continue to face excess manufacturing capacity and inconsistent customer ordering patterns, creating challenges for volume growth and pricing stability. Conversely, businesses serving more resilient end markets, particularly food and protein-related applications, continue to attract attention given their recurring demand characteristics. Industry participants also noted improving conditions in select corrugated packaging markets as years of capacity rationalization have started to support a healthier supply-demand balance. Looking ahead, companies with differentiated capabilities, diversified customer relationships and exposure to more stable end markets appear best positioned to navigate an uneven recovery.
Raw Material Volatility and Pricing Discipline
Raw material price volatility continues to influence operating performance across the packaging industry, particularly for manufacturers exposed to resin and other commodity-based inputs. Conversations at the conference highlighted the importance of effective pricing mechanisms, including contractual pass-through provisions and index-based pricing arrangements, in protecting profitability during periods of input-cost fluctuations. While certain manufacturers have demonstrated an ability to preserve margins through disciplined pricing strategies, the timing of cost recovery and the ability to maintain pricing as raw material costs normalize remain important considerations. Companies with strong customer relationships, differentiated product offerings and established pricing mechanisms may be better positioned to manage volatility and maintain consistent earnings performance.
Innovation, Sustainability and Product Differentiation
Innovation remains an important competitive differentiator as packaging manufacturers seek to expand their addressable markets, improve product performance and respond to evolving customer requirements. Discussions highlighted the growing emphasis on specialized packaging solutions that provide tangible operational benefits, particularly in food safety, product protection and moisture management. Sustainability also remained a prominent topic at PACK EXPO, with manufacturers showcasing developments in recyclable materials, reusable packaging systems and alternative substrates. However, the commercial viability of sustainable solutions continues to depend on cost competitiveness, functionality and customer adoption. Businesses capable of combining innovation with measurable economic and performance advantages are increasingly well positioned to capture market share and create long-term value.
Automation and Packaging Equipment Investment
Automation and equipment innovation were prominent themes throughout the conference, as manufacturers continue to prioritize productivity, operational efficiency and greater flexibility across production environments. Exhibitors showcased advancements in robotics, automated packaging systems and integrated technologies designed to reduce manual intervention, improve throughput and optimize production processes. Investor interest in specialized packaging equipment also remains evident, particularly in applications supporting thermoforming, sealing and other value-added manufacturing processes. As packaging companies evaluate opportunities to improve profitability and expand capacity, equipment providers offering differentiated technology, measurable productivity improvements and attractive returns on investment may benefit from continued demand for operational modernization.
A More Constructive M&A Outlook
Conversations with financial sponsors and industry participants reflected a more constructive sentiment toward packaging M&A, with investors continuing to pursue new platforms, strategic acquisitions and recapitalization opportunities. While transaction activity remains selective and valuation expectations continue to vary by substrate and end market, private equity interest in differentiated packaging businesses remains evident. Investors are also increasingly considering creative transaction structures, including corporate carve-outs, minority investments and strategic combinations, to capitalize on opportunities across the sector. With several market participants evaluating potential exits and acquisition opportunities over the coming year, improving investor confidence and an expanding pipeline of prospective transactions could support a more active packaging M&A environment in 2027.
While certain operating challenges persist, Lincoln’s packaging team remains optimistic about the opportunities ahead as investors continue to demonstrate strong interest in the sector and business owners evaluate their strategic alternatives. Differentiated businesses with resilient end market exposure and strong operating performance will be well positioned to capitalize on an improving transaction environment.
If you missed Lincoln’s team at PACK EXPO this year, please reach out to continue the conversation and discuss the evolving packaging landscape. We welcome the opportunity to connect and share perspectives on the industry and observations on the packaging M&A market heading into 2027.
