Carton Boxmakers Shifting Strategies

Whatever the total, and despite pressures from end-user consolidation, alternative packaging forms and inter-segment competition from various box types, only a slight reduction in total plants or companies is expected in the next few years. However, such continued M&A activity could actually help the industry, as consolidation could occur to reduce or restructure debt or force the selloff of non-core SBUs. This could actually position carton converters stronger financially, make them less vulnerable to further hostile or necessary acquisition, and afford them greater investment assets to put toward new, emerging niche markets or for R&D.