Dealmakers across the global food and beverage (F&B) sector are returning to the table with renewed intent, signalling a shift in momentum after several uneven years.
While the broader investment climate remains cautious, transaction values continue to trend upward from the post-2022 slowdown. Total deal value across the sector rose 9% in 2025, reaching US$110.9bn.
The recovery points to a market that is stabilising and gradually rebuilding confidence, with investors showing a readiness to act where the fundamentals align.
In the mid-market, activity tells a quieter but important story.
The latest review of global F&B M&A by Baker Tilly International, produced in conjunction with Mergermarket, shows mid-market sector value reached US$20.4bn in 2025, marking just a 1% year-on-year increase, although still largely in line with value totals over the past five years.
However, this was well below the global mid-market benchmark (all sectors) where deal value rose 7% during the same period. Mid-market F&B deal volume declined 1%, contrasting with 4% growth in transactions across the wider mid-market (all sectors).
Taken together, this data points to a cautious recovery profile, with incremental improvements in investment but limited expansion in transactions.
F&B M&A snapshot
US$110.9bn Global F&B M&A value in 2025, up from US$102.1bn in 2024
1,062 deals Global F&B M&A volume in 2025, down from 1,080 deals in 2024
2% F&B share of all deals in the mid-market in 2025, unchanged from 2024
US$20.4bn Mid-market F&B M&A deal value, compared to US$20.2bn in 2024
187 deals Mid-market F&B M&A deal volume, compared to 189 in 2024
Asia Pacific was the top market for mid-market deals, accounting for 41% of deal volume and 39% of deal value in 2025
The food sub-sector accounted for 76% of F&B mid-market deal value and 82% of volume in 2025.
Cross-border deal volume in 2025 in the mid-market decreased 27% and deal value dropped 31%
A sector in strategic transition
The F&B industry is being reshaped by evolving consumer preferences and a more disciplined approach to growth.
Dealmakers are reassessing where value lies, actively refining business structures and doubling down on areas that offer resilience and returns. This shift is less about expansion at any cost and more about strategic clarity, focusing on what works and divesting what no longer fits.
Health and wellness take centre stage
The shift towards healthier consumption continues to gain momentum, placing wellness-focused brands firmly in the spotlight. This trend is expected to sustain strong deal flow, particularly in the mid-market where brands with loyal followings and pricing power present attractive growth opportunities.
Securing the supply chain
Trade disruption and geopolitical uncertainty are reinforcing the importance of supply chain resilience. In response, dealmakers are pursuing acquisitions that strengthen control over sourcing, production and distribution. Targeting suppliers and regional producers allows companies to mitigate risk, stabilise costs and enhance operational reliability in an increasingly complex global environment.
Technology as a value driver
Digital capabilities are becoming central to investment decisions. Dealmakers are prioritising targets with advanced analytics, artificial intelligence (AI) driven forecasting and stronger inventory management. Beyond efficiency gains, technology is also enabling growth through e-commerce expansion, smarter pricing and more personalised customer engagement.
Cross-border ambitions expand
Cross-border M&A remains a key lever for growth, as companies seek access to both mature and high-growth markets. While regulatory scrutiny and integration challenges persist, international deals offer clear advantages in terms of market entry, distribution reach and long-term scalability. Mid-market transactions continue to play a critical role, providing accessible pathways for global expansion.
Cautious optimism ahead
Looking forward, the outlook remains cautiously optimistic.
A more supportive interest-rate environment could ease financing pressures, while ongoing portfolio optimisation is expected to sustain deal flow.
At the same time, the convergence of food, health and technology is opening new investment frontiers, from functional nutrition to AI-enabled supply chains.
Although regulatory and geopolitical risks persist, the sector’s fundamentals continue to underpin an active and evolving dealmaking landscape.
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