Advantage: Flexible Packaging

Tom Blaige of Thomas Blaige & Company (www.blaige.com) says there is every reason to believe that "flexible packaging is due for significant consolidation." In his presentation at FPA's annual meeting, he noted the impact of industry consolidation during the past decade. Of the top 50 flexible packaging companies in 2000, 32 percent have lost their identity, 12 percent have changed ownership, and 40 percent have used M&A to achieve strategic goals, he reports. He also compared the evolution of other, more mature packaging types to make a case for further consolidation. For glass packaging containers, three companies currently control 90 percent of the market, and for metal cans, four companies have 80 percent share. This compares to 34 percent share for four companies in flexible packaging in 2010.