Perspectives on inflation
Sector strategy
Consumer Perspectives
Private Equity and M&A
Navigating Turbulence
Value through Sustainability
Mill of the Future
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Unpack the power of sustainable packaging
Paper & Packaging
Report 2023
OVERVIEW
In DePTH
SECTION TITLE 03
Paper and packaging had a blockbuster 2022. Coming out
of the pandemic, companies made a panicked rush to secure their supply chains. Combined with climbing inflation, nearly every company in the sector was able to raise prices and make record profits.
Then, in 2023, demand started dipping while raw materials, logistics, and labor costs continued to increase. And the environmental impact of packaging production, use, and disposal continues to come under increasing scrutiny from the public and regulators.
As a result, the current moment is more turbulent than ever. But this tumult presents opportunities to gain market share and generate real shareholder returns. As we explore
in our inaugural report, leading companies are prioritizing sustainability, commercial excellence, and M&A opportunities. Best-in-class companies use scenario
planning to navigate this turbulence and aim for full
potential transformations of their entire organizations.
When done right, such programs have increased EBITDA
by more than 8 points on average.
Ilkka Leppävuori
Leader of Bain’s Global Packaging subsector
Welcome to Bain’s fifth M&A global annual report
Substrates
Transformation
Commercial Excellence
Biodiversity Strategy
Welcome to Bain’s first Global Paper and Packaging Report
Tackling operational and commercial excellence can boost profitability and value by 65%
CIOs are still investing in IT
Percentage who expect IT budget to increase or stay the same
April 2020
44%
2023
(expected)
77%
Source: Bain analysis
Dave Waller
Leader of Bain’s Americas Packaging subsector
Average EBITDA uplift per lever
Pre-transformation
100%
20%
10%
25%
40%
195%
Strategic choices
(volume growth)
Cost/capital efficiency
(fixed costs)
Commercial
excellence
Operational excellence
(variable cost)
Post-transformation
st
Paper and packaging had a blockbuster 2022. Coming out
of the pandemic, companies made a panicked rush to secure their supply chains. Combined with climbing inflation, nearly every company in the sector was able to raise prices and make record profits.
Then, in 2023, demand started dipping while raw materials, logistics, and labor costs continued to increase. And the environmental impact of packaging production, use, and disposal continues to come under increasing scrutiny from the public and regulators.
As a result, the current moment is more turbulent than ever. But this tumult presents opportunities to gain market share and generate real shareholder returns. As we explore
in our inaugural report, leading companies are prioritizing sustainability, commercial excellence, and M&A opportunities. Best-in-class companies use scenario
planning to navigate this turbulence and aim for full
potential transformations of their entire organizations.
When done right, such programs have increased EBITDA
by more than 8 points on average.
Paper and packaging had a blockbuster 2022. Coming out of the pandemic, companies made a panicked rush to secure their supply chains. Combined with climbing inflation, nearly every company in the sector was able to raise prices and make record profits.
Then, in 2023, demand started dipping while raw materials, logistics, and labor costs continued to increase. And the environmental impact of packaging production, use, and disposal continues to come under increasing scrutiny from the public and regulators.
As a result, the current moment is more turbulent than ever. But this tumult presents opportunities to gain market share and generate real shareholder returns. As we explore
in our inaugural report, leading companies are prioritizing sustainability, commercial excellence, and M&A opportunities. Best-in-class companies use scenario
planning to navigate this turbulence and aim for full potential transformations of their entire organizations. When done right, such programs have increased EBITDA by more than 8 points on average.