Packform, one of the largest tech-driven B2B packaging marketplaces, has announced plans to expand its operations into Europe, Asia, Mexico, and Canada – and is fielding approaches from strategic partners to fast-track its progress.
Founded in 2020, Packform has transformed the packaging sector by streamlining distribution inefficiencies and equipping both buyers and sellers with an innovative, technology-based marketplace.
Packform’s last sell-down was to a private equity firm in the United States for 10% at a US$ 125 million market valuation two years ago, with a further option at US$ 200 million for an additional 10%. The company has achieved an annual growth rate of 50%, with projected acceleration to 80% by FY25, positioning itself on a clear trajectory toward a $1 billion valuation in the next three years.
Despite a post-Covid slowdown in industry growth, Packform has consistently exceeded the market’s annual growth rate of 4-5%. The company is generating positive cash flow and is prepared to double in size year over year.
Packform uses its technology in a 3-sided marketplace to connect customers and suppliers, streamlining the order, quote, delivery, and payment processes with disruptive technology. It offers both stock and custom packaging solutions, allowing for tailored SKUs and quotes, which attracts tech-centric investors.
The packaging materials market in North America was valued at US$217.91 billion in 2022, with Asian markets exhibiting similarly strong growth trends. Packform has recognised another opportunity for growth and is leading the way in a global transformation of packaging distribution.
Philip Weinman, Founder and Executive Chairman at Packform, said that these figures are a testament to significant growth opportunities in the global packaging distribution market.
“Whilst there’s still plenty of opportunity left for expansion within the US market, Packform is at a stage where it is ready to adapt the business model to disrupt the European and Asian markets,” Weinman said.
Weinman said Packform is seeking a strategic partnership that will assist in accelerating growth and profitability.
“With the right strategic partner that shares Packform’s vision for a global marketplace powered by disruptive technology, we are collectively poised to capture substantial market share as it scales internationally.”
He added, “Packform is ready with the right technology to expand internationally in the next six months, including adapting to the specific language and currency of each nation.”
Preston Geeting, co-founder of Packform in the USA, said that Packform is at an inflection point, poised for significant global expansion.
“Our robust technology and proven market adaptability set the foundation for scaling into new markets, making this an opportune moment to seek partnerships that align with our vision.”
The European packaging industry is also witnessing significant expansion, driven by an increasing demand for innovative and sustainable packaging solutions across all sectors. Projections indicate that the market will grow from approximately €153 billion in 2024 to €186 billion by 2029, representing a compound annual growth rate (CAGR) of 4.07%.
As European countries face the challenge of transitioning to more sustainable materials and meeting stringent recycling targets driven by EU regulations, Packform’s platform offers a timely solution that efficiently addresses these requirements.
Packform’s adaptable model is well-suited to meet diverse market needs, with flexibility to adjust to both country-specific challenges and regulatory demands.
“Packaging is viewed as a low-growth industry, but we’ve demonstrated a different path. Using technology to transform the interactions between customers, suppliers, and salespeople, we’ve achieved 70% growth and boosted profitability beyond traditional players. Disruption here isn’t just about technology; it’s about reshaping relationships to create better experiences for everyone,” Weinman said.
Packform’s tagline “cheaper, faster, better” isn’t a catchy marketing line; it has always been the company’s promise, and it is what it delivers.
Packform’s entry into the international markets through both commodity and custom solutions highlights its commitment to capturing significant market share and setting new standards within the packaging sector.
