10.3.8.2Vertical

Labeling & Repackaging Services

3PLs relabeling and repackaging products for retail or compliance.

Market snapshot

These figures describe Value-Added Logistics Services (10.3.8), the segment that Labeling & Repackaging Services sits within. They are not figures for Labeling & Repackaging Services on its own.

Market size
~$16B
Growth
~10.5%CAGR (2017–22, nominal)
Companies
~3,746 firms
Firms by employee count

82.9% of firms have fewer than 20 employees: 3,106 micro-businesses, below most mandates.

The investable universe640 firms with 20+ employees
20–99
42867%
100–499
13621%
500+
7612%

Packing, labeling and kitting performed inside someone else's supply chain. This is the part of 3PL that does have its own classification. It is stickier than the transport around it, because these operations are configured to a customer's packaging and are painful to move once running.

NAICS 488991, 488999, 561910. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Value-added service fees within logistics contracts

Key economics

Revenue per firm
$4,237,431
Revenue per employee
$192,086
Employees per firm
20.5
Recurring revenue
Moderate–High

embedded in recurring logistics

EBITDA margin
Higher-margin than core logistics handling
Capex intensity
Low

Characteristics

  • Scale-driven: payroll is only 21% of revenue, so the cost base is assets, not headcount
  • Moderate strategic-buyer pool: 76 firms exceed 500 employees, so a scaled asset has buyers, but not many
  • Kitting, labeling, postponement, and light assembly.
  • Defers final configuration close to the customer.
  • Adds margin and stickiness to logistics.

NAICS 488991, 488999, 561910. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityModerate

Who’s acquiring

  • 3PLs & contract-logistics providers
  • Specialized value-added operators
  • PE-backed platforms

What’s driving deals

  • Postponement and customization strategies.
  • E-commerce personalization.
  • Margin and stickiness enhancement.

Find Labeling & Repackaging Services acquisition targets

Search Acquisera’s index for companies classified under Labeling & Repackaging Services (10.3.8.2) and build a targeted deal pipeline.

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