Mid-market food and beverage M&A steady as strategic buyers target resilient growth

• Mid-market deal value edges up to US$20.4bn in 2025 despite softer volumes and weaker cross-border activity 

• PE and buy-out levels reduce significantly 

Mid-market food and beverage (F&B) mergers and acquisitions (M&A) remained resilient in 2025, with total deal value rising slightly to US$20.4bn, according to new Baker Tilly International research produced with Mergermarket. While overall activity remained essentially flat, the data suggests buyers continue to pursue high-quality assets with strong consumer appeal, even as financing conditions and valuation discipline keep broader deal volumes under pressure. 

The report, Global dealmakers 2026: Mid-market food and beverage M&A data pulse, shows that mid-market deal value increased 1% year on year in 2025, while deal volume slipped 1% to 187 transactions. This points to a market where investors remain selective but are still willing to commit capital to businesses with differentiated offerings, pricing power and clear strategic fit. 

The findings also highlight a widening gap between strategic and financial buyers. Private equity (PE) activity in the mid-market F&B sector weakened significantly in 2025, with buyout value down 35% to US$3.6bn and buyout volume down 31% to 37 deals. By contrast, strategic buyers remained more active, reflecting stronger balance sheets and a continued focus on acquisitions that support portfolio optimisation, scale and long-term growth. 

Harsh Maheshwari, global advisory services leader at Baker Tilly International, said: “F&B dealmaking is entering a more selective phase. Buyers are looking beyond scale to clear consumer relevance, pricing power and resilience. In the mid-market, this creates strong opportunities for brands built around health, convenience, premiumisation and supply chain resilience. As confidence improves, the most attractive assets will be businesses that sit closest to changing consumer demand and are agile enough to scale through new channels, markets and technology.” 

Cross-border caution reshapes international dealmaking 

Regionally, Asia Pacific remained the leading market for mid-market F&B M&A in 2025, accounting for 41% of deal volume and 39% of deal value, reflecting continued investor interest in the region’s favourable demographics, urbanisation and rising demand for premium and convenient food products.  

However, cross-border activity was weaker across all major regions, highlighting a more cautious approach to international expansion. Overall, cross-border mid-market deal value fell 31% to US$6.6bn, while volume dropped 27% to 54 deals, as buyers contended with geopolitical uncertainty, regulatory scrutiny and more complex execution conditions.  

In Asia Pacific, cross-border deal value declined 13% to US$1.9bn and volume fell 15% to 17 deals, although the region still recorded the highest cross-border deal count of any market. North America saw a steeper pullback, with inbound deal value down 44% to US$1.6bn and volume falling 31% to 11 deals, while outbound activity by North American buyers also weakened, with value down 33% to US$1.8bn and volume down 44% to 10 deals.  

In Western Europe, inbound deal value fell 26% to US$2.4bn and volume dropped 38% to 15 deals, while outbound activity declined 27% by value to US$2.8bn and 21% by volume to 22 deals, although European buyers remained the most active outbound bidders globally. 

Health, convenience and premiumisation continue to drive interest 

The report also shows that the food sub-sector continued to dominate mid-market dealmaking, accounting for 76% of deal value and 82% of volume in 2025. Demand for healthier products, convenient formats and premium offerings is expected to continue shaping deal activity through 2026 and into 2027, with acquisitive interest likely to remain strongest in categories aligned to changing consumer preferences. 

While food accounted for the majority of mid-market F&B dealmaking in 2025, the beverage segment is emerging as an area of growing strategic interest as investors respond to changing consumer preferences. The beverage sub-sector accounted for 24% of deal value and 18% of deal volume, with activity increasingly shaped by demand for healthier, functional and premium products.  

Investor attention is expected to focus on categories such as low- and no-alcohol drinks, functional beverages and other better-for-you alternatives, as consumers, particularly younger generations, continue to moderate alcohol consumption and move away from traditional sugary drinks. As a result, the sector is likely to see a mix of targeted growth investment in faster-growing segments and further consolidation across more mature beverage categories. 

The outlook for 2026 

Mr Maheshwari added: “What makes mid-market F&B so compelling right now is the diversity of deal flow. Mature markets are producing carve-outs and succession-driven opportunities, while high-growth markets are surfacing younger, faster-growing targets in categories that barely existed a decade ago. Both offer real opportunities for different reasons.” 

Looking ahead, deal activity is expected to remain supported by ongoing corporate portfolio reshaping, demand for health and wellness-focused assets, and a gradually improving financing backdrop. While cross-border activity may take longer to recover, the underlying fundamentals of the food and beverage sector continue to offer attractive opportunities for strategic investors.