FOOD & BEVERAGE M&A MARKET DYNAMICS
In Q1-25, US and Global Food & Beverage (“F&B”) M&A activity included 81 completed transactions in the US and 242 globally, representing a 34.7% and 24.1% decline, respectively, from the same period in 2024. Food and Beverage Manufacturing remained the most active subsegment, accounting for 54.3% of US M&A activity.
What We’re Discussing With Clients
Regulatory Changes Underway in the U.S. F&B Sector
U.S. Food & Beverage companies are beginning to face regulatory changes under the new administration, including an upcoming ban on FD&C Red No. 3, an artificial coloring ingredient linked to potential health risks. The ban will require reformulation of food products by January 2027 and ingested drugs by January 2028. Companies have already begun scrutinizing product portfolios for restricted ingredients and assessing the timeline and costs of reformulation. For sellers, addressing these regulatory risks proactively can strengthen positioning ahead of conversations with customers, suppliers, and potential counterparties in a transaction.
Strategic Realignment in F&B
Legacy Food & Beverage brands are actively reassessing and repositioning their portfolios to better align with evolving corporate strategies focused on growth via the healthy living category and product innovation, sustainability initiatives, and supply chain resilience. This strategic shift comes amid a more cautious M&A environment, where buyers are not only seeking growth opportunities but also placing greater emphasis on ingredient sourcing, regulatory risks, and long-term brand alignment.
Growth in Protein Demand
Protein has emerged as a highly sought-after category in the Food & Beverage industry, driven by growing consumer demand for protein-rich options beyond traditional powders and bars. In response to this growing interest, many companies are actively developing innovative products that incorporate protein in new and appealing formats. Some businesses have elected to enter the market through strategic acquisitions, aiming to quickly establish a foothold and capitalize on this expanding trend.
Food & Beverage M&A Pulse – Q4 2025
Q4-25 U.S. and global transactions fell 25 percent and 38 percent, respectively, compared to the same quarter in the prior year.
Food & Beverage M&A Pulse – Q3 2025
M&A activity in the U.S. Food and Beverage market declined in Q3-25, totaling 101 transactions, an 18.5 percent drop from 120 deals in the same period last year.
Food & Beverage M&A Pulse – Q2 2025
M&A activity in the U.S. Food and Beverage market declined in Q2-25, with 403 transactions recorded over the trailing twelve months, down from 501 in 2024 and 468 in 2023.
Food & Beverage M&A Pulse – Q4 2024
U.S Food and Beverage M&A activity concluded 2024 on a high note, with transactions increasing 18.4% in Q4 compared to the same quarter last year. In total, 2024 saw 501 transactions, marking a 7% rise from 2023.
Food & Beverage M&A Pulse – Q3 2024
Deal activity in the Food & Beverage sector continues to gain momentum as rate cuts from the Federal Reserve are expected to enable an improved cost of capital dynamic, supporting an increase in deal flow through better alignment of value expectations between buyers and sellers.