Mezzo Insights: Medical Converting Trends and Key Takeaways from the ARC Medical Summit
Mezzo was pleased to once again participate in the Association of Roll-to-Roll Converters Executive Conference in Minneapolis, where Director Stuart Sanford led the conference's discussion on mergers and acquisitions within the converting sector.
With industry leaders participating across the supply chain, this year's conference took a deep dive into the medical converting market and related technical advancements, emerging trends, and market structure.
Key Observations
Capability Is Becoming a Greater Differentiator Than Capacity
Across conversations with converters, suppliers, and medical device manufacturers, a common theme emerged: OEMs are increasingly selecting partners based on their ability to support product development, navigate regulatory requirements, and deliver sophisticated manufacturing solutions. OEMs are demanding expertise in:
Skin-contact adhesive systems
Multilayer constructions
Specialty and breathable substrates
Printed electronics integration
Precision converting and assembly
Sterile packaging and cleanroom manufacturing
As a result, technical know-how and engineering engagement are becoming increasingly important competitive advantages.
Specialty Markets Continue to Outperform Commodity Segments
The conference highlighted the continued migration toward higher-value, specialized medical applications where qualification requirements, validation processes, and performance standards create meaningful barriers to entry.
Unlike many traditional markets, converters serving medical, aerospace and defense and other specialty markets often benefit from:
Lengthy qualification cycles
Deep customer integration
Long product life cycles
Significant switching costs
More predictable production volumes
Operators in these markets benefit from durable customer relationships and recurring revenue opportunities.
Untapped Opportunities: Industry stakeholders consistently referenced the following medical segments as the highest future growth segments for their business:
· Flexible Electronics
· Wearables
· Wound Care
· Drug Delivery
These markets are all expected to achieve high-single-digit to double-digit growth over the next few years. The $15B wearable patch market was a significant focus of the conference, with many participants quoting increasing global demand driven by health monitors, glucose patches, and biosensors.
Material Science Remains a Key Driver of Value Creation
One of the most consistent themes throughout the conference was the growing importance of material innovation.
Medical device OEMs continue seeking advancements in:
Adhesive performance
Skin-friendly materials
Moisture management
Barrier technologies
Patient comfort and wearability
This evolution is driving converters further upstream in the development process, transforming them from manufacturing providers into strategic engineering partners.
Businesses with advanced coating, laminating, precision converting, and cleanroom capabilities are increasingly positioned to capture higher-value opportunities and participate earlier in product development cycles.
Medical Markets Continue to Outperform General Industrial Segments
A recurring takeaway was that manufacturers serving medical applications (and other regulated, technical markets like aerospace and defense) benefit from:
Higher qualification barriers
Greater customer stickiness
Longer product life cycles
Increased engineering collaboration
Reduced exposure to pure price competition
These characteristics support stronger margins, enhanced visibility, and more attractive acquisition profiles than many traditional industrial converting markets.
Takeaway
The ARC conference reinforced a trend that continues to shape both industry strategy and M&A activity:
Buyers and customers increasingly value specialty capabilities over commodity production, engineering expertise over manufacturing capacity, and resilient, regulated end markets over cyclical industrial exposure.
For converters serving wearable technologies, advanced wound care, specialty medical materials, and other highly engineered healthcare applications, the underlying growth drivers and strategic interest from investors and acquirers remain compelling.
Interested in Stuart Sanford’s ARC Medical Summit Presentation?
Access Stuart’s presentation on current M&A trends and the forces driving value creation in roll-to-roll converting. Complete the form below to receive the full presentation.