11 Best Packaging Stocks to Buy Now

Published July 5, 2023 at 4:28 pm EDT Updated August 31, 2026 at 12:00 pm EDT

In this article, we discuss 11 best packaging stocks to buy now.

The packaging industry in the US is a significant sector that plays a crucial role in various industries, including food and beverage, pharmaceuticals, consumer goods, electronics, and more. The sector has experienced steady growth over the years, driven by factors like e-commerce expansion, increased consumer spending, and technological advancements. According to a report by Markets and Research, the US packaging industry was worth $184.6 billion in 2021 and is expected to grow at a CAGR of 2.94% by 2027, reaching $218.1 billion.

The packaging industry is characterized by ongoing trends that reflect changing consumer preferences and market demands. Sustainability has become a major focus in the industry. Consumers are increasingly concerned about environmental impact, leading to a rise in demand for sustainable packaging solutions. McKinsey & Company conducted a comprehensive global survey and interviewed executives from various sectors of the packaging industry to gather insights and perspectives. About 43% of the respondents in the survey prioritize the environmental impact of packaging as an extremely or very important factor when they make purchasing decisions. The survey also highlighted that a significant number of consumers are willing to pay a higher price for sustainable packaging. Across different product categories, 4 to 7 percent of consumers are willing to pay a premium exceeding 10 percent.

Also read: 15 Biggest Packaging Companies in the World

The emergence of the pandemic in 2020 has led to the expansion of online shopping, consequently fueling the growth of the e-commerce packaging sector. Packaging solutions that prioritize protection, efficient use of space, easy product identification, and hassle-free returns are in high demand. Additionally, brands are leveraging packaging as an opportunity to create unboxing experiences that leave a lasting impression on customers. Data shows that the e-commerce packaging market was valued at $42.2 billion in 2022 and is projected to grow at a CAGR of 5.7% from 2022 to 2029.

In 2022, the market faced challenges due to high-interest rates and increasing inflation, which harmed various sectors, including packaging stocks. The performance of packaging stocks was not immune to these prevailing economic conditions. Some of the best packaging stocks like WestRock Company (NYSE:WRK), International Paper Company (NYSE:IP), and Sealed Air Corporation (NYSE:SEE) sharply declined last year. The Dow Jones Containers & Packaging Index, which tracks the performance of companies operating in the containers and packaging industry, declined by 9.83% in the past 12 months and 2.58% year-to-date. However, given that packaging companies are generally mature and known for providing stable dividends, they are anticipated to regain solid ground and strengthen their position in the market this year. In view of this, we have compiled a list of some of the best packaging stocks to buy now.

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Our Methodology:

For this article, we scanned Insider Monkey’s database of 943 hedge funds as of Q1 2023 and picked companies that are involved in metal, glass, or plastic containers, as well as manufacturers of paper and cardboard containers and packaging. From that list, we picked 11 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them.

11. Packaging Corporation of America (NYSE:PKG)

Number of Hedge Fund Holders: 18

Packaging Corporation of America (NYSE:PKG) is an American company that specializes in packaging solutions and paper products. It is one of the largest producers of containerboard and corrugated packaging products in the US. In the first quarter of 2023, the company reported revenue of $1.98 billion, which fell by 7.5% from the same period last year. Its net income for the quarter came in at $198 million. It is one of the best packaging stocks on our list alongside WestRock Company, International Paper Company, and Sealed Air Corporation.

Packaging Corporation of America is also a dividend payer and has been raising its dividends consistently for the past 12 years. The company currently pays a quarterly dividend of $1.25 per share and has a dividend yield of 3.77%, as of July 4.

At the end of Q1 2023, 18 hedge funds tracked by Insider Monkey reported having stakes in Packaging Corporation of America, compared with 22 in the previous quarter. These stakes have a total value of over $86.4 million. Among these hedge funds, AQR Capital Management was the company’s leading stakeholder in Q1.

10. Sonoco Products Company (NYSE:SON)

Number of Hedge Fund Holders: 18

Sonoco Products Company (NYSE:SON) is a South Carolina-based global provider of diversified consumer packaging, industrial products, and packaging services. The company currently pays a quarterly dividend of $0.51 per share, having raised it by 4.1% in April this year. This marked the company’s 40th consecutive year of dividend growth. The stock’s dividend yield on July 4 came in at 3.42%.

Sonoco Products Company, one of the best packaging stocks, posted an EPS of $1.40 in the first quarter of 2023, which beat Street estimates by $0.08. The company’s cash position also remained strong as it reported an operating cash flow of $98 million and a free cash flow of $86 million. Its cash flow was sufficient to cover dividend payments of $48 million during the quarter.

As of the close of Q1 2023, 18 hedge funds tracked by Insider Monkey were long Sonoco Products Company, up from 17 a quarter earlier. The stakes owned by these hedge funds have a collective value of over $140.6 million.

9. Amcor plc (NYSE:AMCR)

Number of Hedge Fund Holders: 22

Amcor plc (NYSE:AMCR) is a multinational packaging company that provides a wide range of packaging solutions and services. The company manufactures flexibles, rigid plastics, specialty cartons, and other packaging products. The company remained committed to its shareholder return in its fiscal Q3 2023, as it returned $745 million to shareholders through dividends and share repurchases. Its revenue for the quarter came in at $3.6 billion, declining by 1.1% from the same period last year.

One of the best packaging stocks, Amcor plc (NYSE:AMCR) has been growing its dividends consistently for the past 39 years. It currently pays a quarterly dividend of $0.1225 per share for a dividend yield of 4.86%, as of July 4.

At the end of March 31, 22 hedge funds in Insider Monkey’s database owned stakes in Amcor plc (NYSE:AMCR), worth collectively over $244.5 million. With roughly 15 million shares, Polaris Capital Management is the company’s leading stakeholder in Q1.

8. International Paper Company (NYSE:IP)

Number of Hedge Fund Holders: 25

International Paper Company is one of the world’s leading producers of fiber-based packaging, pulp, and paper products. The company specializes in industrial packaging, global cellulose fibers, printing, and packaging papers. It is one of the best packaging stocks on our list.

In April, RBC Capital upgraded International Paper Company to Outperform with a $39 price target. The firm believes that the company is well-positioned to benefit from a possible recovery of industrial packaging and also appreciated its dividend yield.

On May 9, International Paper Company declared a quarterly dividend of $0.4625 per share, which was in line with its previous dividend. The stock’s dividend yield on July 4 came in at 5.78%.

According to Insider Monkey’s database of Q1 2023, 25 hedge funds owned stakes in International Paper Company with a collective value of roughly $440 million. With over 6.3 million shares, Greenhaven Associates was the company’s leading stakeholder in Q1.

7. AptarGroup, Inc. (NYSE:ATR)

Number of Hedge Fund Holders: 26

AptarGroup, Inc. (NYSE:ATR) is next on our list of the best packaging stocks. The company develops and manufactures innovative dispensing systems and packaging solutions for the consumer goods, healthcare, and beauty industries.

AptarGroup, Inc. reported strong earnings in the first quarter of 2023. The company reported revenue of $860 million, which showed a 2% growth from the same period last year and also beat analysts’ estimates by $30.1 million. The company’s operating cash flow also grew to $98 million, from $92 million in the prior-year period.

AptarGroup, Inc. holds a 29-year streak of consistent dividend growth and currently pays a quarterly dividend of $0.38 per share. The company’s shares have a yield of 1.30%, as recorded on July 4.

The number of hedge funds tracked by Insider Monkey owning stakes in AptarGroup, Inc. grew to 26 in Q1 2023, from 22 in the previous quarter. These stakes are collectively worth over $316.4 million.

6. Graphic Packaging Holding Company (NYSE:GPK)

Number of Hedge Fund Holders: 30

Graphic Packaging Holding Company (NYSE:GPK) ranks sixth on our list of the best packaging stocks as the company provides packaging solutions primarily for the food, beverage, and consumer products industries. It also specializes in designing and manufacturing a wide range of paperboard-based packaging products. In addition to GPK, WestRock Company, International Paper Company, and Sealed Air Corporation are some other best packaging stocks to look for.

In the first quarter of 2023, Graphic Packaging Holding Company reported revenue of $2.44 billion, up 9% from the same period last year. The company ended the quarter with cash and cash equivalents of $113 million. Its operating cash flow jumped to $60 million, from $18 million in the prior-year period.

Graphic Packaging Holding Company is also a dividend company and pays a quarterly dividend of $0.10 per share. The stock’s dividend yield on July 4 came in at 1.64%.

As of the close of Q1 2023, 30 hedge funds in Insider Monkey’s database reported having stakes in Graphic Packaging Holding Company, with a total value of over $840.2 million. Ian Simm, Ricky Sandler, and D. E. Shaw were some of the company’s leading stakeholders in Q1.

5. Avery Dennison Corporation (NYSE:AVY)

Number of Hedge Fund Holders: 30

Avery Dennison Corporation (NYSE:AVY) is an Ohio-based materials science and manufacturing company that specializes in labeling and packaging materials, as well as various solutions for industries such as retail, apparel, automotive, healthcare, and more. It is among one of the best packaging stocks to buy now.

In the first quarter of 2023, Avery Dennison Corporation posted an EPS of $1.70, which surpassed analysts’ estimates by $0.05. During the quarter, the company paid $114 million to shareholders through dividends and share repurchases. It currently pays a quarterly dividend of $0.81 per share for a dividend yield of 1.87%, as of July 4. The company has been growing its dividends for 12 years running.

At the end of Q1 2023, 30 hedge funds in Insider Monkey’s database reported having stakes in Avery Dennison Corporation, up from 26 a quarter earlier. These stakes have a consolidated value of over $243.5 million.

4. Sealed Air Corporation (NYSE:SEE)

Number of Hedge Fund Holders: 32

Sealed Air Corporation is an American company that provides packaging solutions focused on food safety, product protection, and sustainability. During the first quarter of 2023, the company generated $52 million in operating cash flow, up from $48 million in the prior-year period. Its free cash flow for the quarter came in at $13 million.

Sealed Air Corporation, one of the best packaging stocks, currently pays a quarterly dividend of $0.20 per share and has a dividend yield of 1.98%. During Q1 2023, the company returned $31 million to shareholders in dividends.

Sealed Air Corporation was a popular buy among elite funds in Q1 2023, as 32 hedge funds tracked by Insider Monkey owned stakes in the company, up significantly from 23 in the previous quarter. These stakes have a total value of nearly $210 million.

Vulcan Value Partners mentioned Sealed Air Corporation in its Q1 2023 investor letter. Here is what the firm has to say:

“Sealed Air Corporation (NYSE:SEE) is a global protective packaging company operating in the food and beverage, industrial, and e-commerce markets. The company sells both packaging equipment and consumable packaging. Sealed Air has a strong market position with leading technology and brands. In the food and beverage market, the Cryovac brand is the gold standard for packaging and shipping fresh, uncooked proteins. Food safety is critically important, and customers are willing to pay for quality and reliability. Additionally, switching costs are high and customer relationships are typically sticky and long term in nature. Sealed Air’s brands in e-commerce and industrial include Bubble Wrap and Instapax, and the competitive advantages in these markets are largely similar.”

3. WestRock Company (NYSE:WRK)

Number of Hedge Fund Holders: 35

WestRock Company is next on our list of the best packaging stocks.

At the end of the March quarter 2023, 35 hedge funds owned stakes in WestRock Company, according to Insider Monkey’s database of 943 hedge funds. These stakes have a collective value of roughly $820 million. With over 12.6 million shares, Greenhaven Associates was the company’s leading stakeholder in Q1.

SouthernSun Asset Management, LLC mentioned WestRock Company in its Q1 2023 investor letter. Here is what the firm has to say:

“WestRock Company (NYSE:WRK), a leading provider of corrugated and consumer packaging in the U.S., reported fiscal first quarter results that were below expectations and was a top detractor for the quarter. Strong pricing drove 1% sales growth in the corrugated packaging segment and 7% growth in the consumer packaging segment, but sales in the global paper segment declined 17% in the quarter due to weak export demand for containerboard. Consolidated EBITDA was down 4% for the quarter, impacted by weakness in the global paper segment and economic downtime taken throughout the mill system. WestRock ended its first fiscal quarter with net debt to trailing 12-months EBITDA of 2.35x, slightly above its targeted range of 1.75-2.25x, driven primarily by the acquisition of the remaining interest in Grupo Gondi. While macroeconomic weakness continues to weigh on demand for packaging, we believe WestRock operates a resilient business model with exposure to a diverse range of end markets. The business has generated over $1 billion in free cash flow in each of the last seven years, and we believe they will exceed that level again during fiscal 2023. Management has demonstrated a commitment to improving returns on capital by shuttering older, inefficient mills, selling its uncoated recycled board mills, and increasing exposure to the growing Latin American market through its acquisition of Grupo Gondi. We believe that shareholders will benefit from these efforts over the long term.”

2. Crown Holdings, Inc. (NYSE:CCK)

Number of Hedge Fund Holders: 45

Crown Holdings, Inc. (NYSE:CCK) is a global manufacturer of metal packaging products for various industries. At the end of March, the company had over $403 million in cash and cash equivalents, up from $389 million in the prior-year period. It also pays a quarterly dividend of $0.24 per share and has a dividend yield of 1.09%, as of July 4.

At the end of Q1 2023, 45 hedge funds tracked by Insider Monkey reported having stakes in Crown Holdings, Inc., compared with 48 in the previous quarter. Their collective stake value of $1.38 billion.

1. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 51

3M Company (NYSE:MMM) is an American multinational conglomerate that also has a presence in the packaging industry and provides various packaging solutions and products. The company is a Dividend King with 65 years of dividend growth streak under its belt. It currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 5.93%, as of July 4.

As of the close of Q1 2023, 51 hedge funds in Insider Monkey’s database reported having stakes in 3M Company, compared with 52 in the previous quarter. The collective worth of these stakes is over $697.3 million.

You can also take a look at 12 Most Undervalued Retail Stocks to Buy and 15 Best Large-Cap Value Stocks To Buy

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