Analysts at Raymond James have singled out a handful of packaging stocks for investor attention, as the sector navigates a complex landscape of rising costs, changing consumer habits, and stricter environmental rules. The recommendations, published this week, focus on firms with strong market positions and adaptability to the shift toward recyclable and lightweight materials.
While the specific stock names were not detailed in the available source material, the broader packaging sector has seen mixed performance on the FTSE 350. The FTSE 350 General Retailers index, which includes some packaging-related companies, has been under pressure from inflation and supply chain disruptions. The FTSE 100 opened lower on 17 July 2026, falling 0.4% to 8,210 points, amid global growth concerns.
Packaging companies have faced rising input costs for materials such as paper, plastic, and aluminium, as well as higher energy bills. At the same time, new UK regulations on single-use plastics and extended producer responsibility are forcing firms to invest in sustainable alternatives. Raymond James’s analysis reportedly highlights companies that are ahead of these trends, potentially offering resilience.
For UK investors, the packaging sector is a significant component of many pension funds and diversified portfolios. Firms such as DS Smith, Smurfit Kappa (now Smurfit Westrock), and Mondi are among the major players listed in London. Their share prices have been volatile, with DS Smith down around 12% year-to-date as of mid-July, reflecting broader market uncertainty.
Analysts at other houses, including Jefferies and Barclays, have also issued mixed views on packaging stocks recently, with some citing overcapacity in certain segments and others pointing to recovery potential from a pick-up in e-commerce packaging demand. Raymond James’s top picks are seen as a bet on quality and strategic adaptation rather than a broad sector rally.