STATE OF THE INDUSTRY ON THE OFFENSIVE

Consolidation consequences

While the flexible packaging industry is still a relatively diverse marketplace, continuing M&A activity has forced many small and mid-sized converters to redefine their business agendas. Overall, as Gaffey asserts, the market is fragmented, with none of the largest companies accounting for more than 10 percent of total share. "The five largest film and flexible packaging makers control only 25 percent of the market, while 80 of the 100 largest fall between $5 million and $100 million in sales," he says.