A major development for the fast-growing packaging automation market, says Vanessa Lopez.

On April 23, 2025, Packsize announced its acquisition of Sparck Technologies, marking a significant milestone in the rapidly evolving market for right-sized, on-demand packaging. This move unites two of the most prominent players in a market that, while still relatively new, is gaining substantial traction as companies seek smarter, more sustainable packaging solutions.

Packsize has become a global leader in box-on-demand systems, known for optimising packaging processes and reducing material waste. One of Packsize’s leading competitors, Sparck Technologies, specialises in advanced automated lidding and vertical height reduction technology. The acquisition of Sparck Technologies by Packsize strengthens the latter’s position in the fast-growing packaging automation market by expanding its portfolio and geographic presence. Here’s our take on the strategy behind this acquisition.

Growing demand for right-sized, on-demand packaging

Right-fit, on-demand packaging has seen interest accelerate in recent years, driven by the explosive growth of e-commerce and the rise of high-SKU environments typical in 3PL operations. As consumer expectations shift toward faster delivery times, businesses face increasing pressure to streamline packaging processes while maintaining sustainability commitments. Reflecting this momentum, our upcoming report covering Packaging Machinery in End-of-Line and Warehouse Applications forecasts that revenues for right-sized packaging solutions in end-of-line and warehousing applications will grow at a compound annual growth rate (CAGR) of 18.5% through to 2029.

These solutions are designed to reduce excess void-fill materials and minimise shipping costs by creating packaging that precisely fits each product or order, whether single-item or multi-item. This is particularly valuable in e-commerce fulfillment centers, where packaging must be quickly adapted to products of varying shapes and sizes. Right-fit systems enable faster packing speeds, reduce material waste, and improve parcel efficiency, helping companies meet next-day or same-day delivery demands while lowering dimensional weight charges.

With regulatory frameworks like the EU Packaging and Packaging Waste Regulation (PPWR) set to take effect in 2026, the focus on minimising packaging volumes and eliminating unnecessary void fill is no longer optional, it’s becoming mandatory. Sparck’s European presence positions Packsize advantageously at a pivotal moment, allowing it to better serve companies needing to comply with PPWR requirements around packaging weight, recyclability, and void reduction.

Competitive landscape and strategic advantages

By acquiring what is likely to be the third-largest player in the box-on-demand market, Packsize has become more competitive against key players like Italy-based CMC Machinery, an early leader in automated packaging solutions with a diverse portfolio that includes both box-making and autobagging systems.

This acquisition also extends Packsize’s geographic reach. While post-acquisition operational details remain undisclosed, Sparck’s strong presence in the Netherlands is likely to provide Packsize with greater access to the European market.

Perhaps the largest advantage gained through this acquisition is the significant expansion of Packsize’s portfolio within automated lidding and vertical height reduction technology. These features address growing demand within the e-commerce and 3PL sectors for standardised box footprints with adjustable heights, simplifying inventory management and further optimisation of shipping costs. The addition of this technology allows Packsize to offer a more comprehensive range of solutions, catering to a broader range of customer needs in automated packaging.

The graphic shows major product launches and milestones from Packsize, Sparck Technologies, and CMC Machinery highlight the rapid evolution of right-sized packaging automation leading up to 2025.

Looking ahead: Integration and innovation

Already a leading force in on-demand packaging, Packsize has been actively strengthening partnerships with major system integrators such as FORTNA and Henkel; a strategy clearly showcased at LogiMAT and ProMat in March 2025. The recent release of its X6 system reflects this focus. Designed specifically for warehousing applications, the X6 allows box creation to double as a tote, enabling goods to be packed directly into right-sized boxes and streamlining operations even further.

Vanessa Lopez joined Interact Analysis in 2023 as a research analyst specialising in industrial automation and packaging machinery. With a strong quantitative and qualitative research background, Vanessa contributes valuable insights to strategic initiatives. She holds a bachelor's in Psychology and a master's in Communication from the University of Texas at Austin. Vanessa is based in the US office.