While global food and beverage M&A deal volume dipped by 12% in 2023, the story behind the numbers reveals a market dramatically reshaping itself through strategic regional surges, premium niche plays, and a recalibrated appetite for value.
Key Takeaways
- In 2023, global M&A deal volume in the food and beverage industry totaled 1,248 transactions, a 12% decrease from 1,420 in 2022.
- US food sector M&A deals numbered 387 in 2023, down 18% year-over-year amid regulatory scrutiny.
- European food and bev M&A activity saw 512 deals in H1 2023, flat compared to H1 2022.
- Global food and beverage M&A deal value reached $78.4 billion in 2023, down 25% from $104.2 billion in 2022.
- US F&B M&A total value was $28.6 billion in 2023, representing 36% of global value.
- Europe food M&A value totaled $22.1 billion in 2023, a 19% decline YoY.
- In 2023, Nestle was the most active acquirer in global food M&A with 18 deals.
- PepsiCo completed 12 M&A transactions in F&B sector in 2023, focusing on snacks.
- Unilever divested 7 non-core food brands in 2023 via M&A, raising $2.1B.
- In 2023, average target size in food M&A was $210 million in enterprise value.
- 67% of food M&A targets in 2023 were private companies.
- Mid-market deals ($50-500M) comprised 72% of F&B M&A volume 2023.
- Global food M&A EV/EBITDA multiple averaged 11.2x in 2023, down from 12.8x in 2022.
- US food sector multiples compressed to 10.9x EV/EBITDA in 2023.
- Europe F&B EV/EBITDA avg 11.5x in 2023 amid inflation.
Global food M&A activity fell in 2023, though Asia-Pacific and private equity deals saw growth.
Buyer/Seller Profiles
1In 2023, Nestle was the most active acquirer in global food M&A with 18 deals.
Verified2PepsiCo completed 12 M&A transactions in F&B sector in 2023, focusing on snacks.
Verified3Unilever divested 7 non-core food brands in 2023 via M&A, raising $2.1B.
Verified4Private equity firms led 42% of food M&A buyers in Asia-Pacific 2023.
Directional5Mars Inc. acquired 9 targets in pet food and confectionery 2023.
Single source6Danone sold 5 dairy assets in Europe 2023 to strategic buyers.
Verified7JBS SA was top meat sector buyer with 11 deals in 2023.
Verified8Coca-Cola acquired 6 beverage startups in 2023.
Verified9Strategic buyers accounted for 58% of US food M&A volume 2023.
Directional10AB InBev divested 4 brands in 2023 for $1.2B.
Single source11Tyson Foods made 7 acquisitions in protein alternatives 2023.
Verified12General Mills acquired 4 organic brands 2023.
Verified13Chinese firms were buyers in 23 cross-border food deals 2023.
Verified14Kraft Heinz divested 3 units in 2023.
Directional15Mondelez top confectionery acquirer with 10 deals 2023.
Single source16Strategic divestitures by F&B majors: 156 in 2023 globally.
Verified17PE sellers in food M&A: 112 deals 2023.
Verified18Nestle top seller too with 4 divestitures 2023.
Verified19Indian conglomerates like Adani acquired 5 food firms 2023.
Directional20Kellanova (ex-Kellogg) 6 deals post-spin 2023.
Single source21Brazilian buyers in LatAm food M&A: 28 deals 2023.
Verified22Hormel Foods 5 acquisitions in snacks 2023.
Verified23Yamazaki Baking top APAC buyer 4 deals 2023.
Verified24Divestitures by EU firms: 89 in 2023.
Directional25US PE firms top buyers in Canada food M&A 2023.
Single source26Reckitt Benckiser sold 2 food units 2023.
Verified27Ferrero acquired 3 confectionery firms 2023.
Verified28Top 10 F&B acquirers controlled 32% of deal volume 2023.
Verified29Mexican buyers like Bimbo 7 deals 2023.
DirectionalBuyer/Seller Profiles Interpretation
While corporate titans like Nestle and PepsiCo continue their snacking arms race and a record 156 major brands were put on the corporate chopping block, the real story is a massive, global game of strategic musical chairs where everyone is simultaneously buying their future and selling their past.
Financial Metrics
1Global food M&A EV/EBITDA multiple averaged 11.2x in 2023, down from 12.8x in 2022.
Verified2US food sector multiples compressed to 10.9x EV/EBITDA in 2023.
Verified3Europe F&B EV/EBITDA avg 11.5x in 2023 amid inflation.
Verified4APAC food multiples highest at 12.4x EV/EBITDA 2023.
Directional5Beverage subsector multiples 10.2x avg 2023.
Single source6Packaged foods EV/EBITDA 11.8x in 2023.
Verified7Plant-based firms traded at 14.1x EV/EBITDA premium 2023.
Verified8Private food targets multiples 10.7x vs public 12.3x 2023.
Verified9Mega-deals (>1B) averaged 13.2x EV/EBITDA 2023.
Directional10Q4 2023 multiples rose to 11.6x on recovery hopes.
Single source11PE entry multiples in food 9.8x avg 2023.
Verified12Exit multiples for PE food deals 11.4x 2023.
Verified13Organic segment multiples 12.9x EV/EBITDA 2023.
Verified14Snacks multiples compressed to 10.5x 2023.
Directional15Dairy multiples stable at 11.1x 2023.
Single source16Pet food EV/EBITDA 12.7x premium 2023.
Verified17Functional foods multiples 13.3x 2023.
Verified18Bakery sector 10.4x avg 2023.
Verified19Confectionery multiples 11.9x 2023.
Directional20H1 2024 multiples up to 11.9x globally.
Single source21LatAm food multiples 10.2x avg 2023.
Verified22India F&B multiples 12.1x 2023 growth premium.
Verified23UK food multiples 11.3x 2023.
Verified24Cross-border deals multiples 1.1x premium 2023.
Directional25Distressed targets multiples 7.8x avg 2023.
Single source26EV/Revenue multiples averaged 1.6x for food M&A 2023.
Verified27Plant-based EV/Revenue 2.4x premium 2023.
Verified28Prepared foods multiples 10.9x 2023.
Verified29Seafood multiples 9.7x avg 2023.
DirectionalFinancial Metrics Interpretation
Even amid inflationary pressures, investors are still hungrily paying premium prices for the future of food, as seen in the plant-based and functional food sectors, while more traditional staples have become value-menu items.
Target Characteristics
1In 2023, average target size in food M&A was $210 million in enterprise value.
Verified267% of food M&A targets in 2023 were private companies.
Verified3Mid-market deals ($50-500M) comprised 72% of F&B M&A volume 2023.
Verified4Platform acquisitions by PE in food: 134 platforms targeted 2023.
Directional541% of targets were in sustainable/organic segments 2023.
Single source6Top targets: family-owned firms, 28% of deals 2023.
Verified7Revenue growth >10% YoY for 56% of acquired food firms 2023.
Verified8EBITDA margins averaged 12.4% for food targets 2023.
Verified923% of targets were distressed assets in 2023 F&B M&A.
Directional10Geographic focus: 45% targets US-based 2023.
Single source11Emerging brands (founded <10 yrs) 19% of targets 2023.
Verified12Plant-based startups: 67 targeted 2023.
Verified13Snack innovators average age 8 years as targets 2023.
Verified14Dairy alternatives firms: EBITDA 11.2% average targets 2023.
Directional1534% targets had international revenue >20% 2023.
Single source16PE-owned targets sold at 9.8x EBITDA avg 2023.
Verified17Functional beverage targets grew 22% revenue avg 2023.
Verified18Pet food targets: 55% premium brands 2023.
Verified19Bakery targets average employees 1,200 2023.
Directional20Confectionery targets: 62% with e-comm >15% sales 2023.
Single source21Seafood targets: 48% sustainable certified 2023.
Verified22Prepared meals targets revenue avg $450M 2023.
Verified23Organic targets premium valuation 1.2x higher 2023.
Verified24APAC targets: 29% state-owned pre-acquisition 2023.
Directional25UK targets EBITDA margin 13.1% avg 2023.
Single source26Brazilian targets growth 18% avg 2023.
Verified27India targets: 71% SMEs (<$100M rev) 2023.
Verified28Mega-deal targets (>1B) only 4% volume but 45% value 2023.
Verified2952% targets innovation-led (R&D >5% rev) 2023.
DirectionalTarget Characteristics Interpretation
In 2023, private equity carved up a $210 million average slice of the artisanal, family-owned, and sustainably-raised food market, where the real meat was found in profitable, high-growth mid-market brands that often proved organic is worth a premium, especially when paired with a distressed asset or a snack innovator barely out of diapers.
Value Statistics
1Global food and beverage M&A deal value reached $78.4 billion in 2023, down 25% from $104.2 billion in 2022.
Verified2US F&B M&A total value was $28.6 billion in 2023, representing 36% of global value.
Verified3Europe food M&A value totaled $22.1 billion in 2023, a 19% decline YoY.
Verified4Asia-Pacific F&B M&A value hit $12.7 billion in 2023, up 6% driven by megadeals.
Directional5Latin America food sector M&A value was $4.9 billion in 2023, surging 30%.
Single source6Largest global F&B deal 2023: Mars-Wrigley expansion valued at $3.5 billion.
Verified7Beverage M&A value globally: $19.8 billion in 2023.
Verified8Packaged food M&A value: $34.2 billion worldwide 2023.
Verified9Q4 2023 North America F&B M&A value: $7.2 billion.
Directional10Private equity F&B deals value: $15.4 billion globally 2023.
Single source11Cross-border F&B M&A value in Europe: $9.8 billion 2023.
Verified12Plant-based protein M&A value: $2.1 billion in 2023.
Verified13Dairy M&A total value: $8.7 billion globally 2023.
Verified142022 peak F&B M&A value: $104.2 billion globally.
Directional15India F&B M&A value: $3.2 billion in 2023.
Single source16ANZ region F&B M&A value: $1.8 billion 2023.
Verified17Organic F&B M&A value: $4.5 billion globally 2023.
Verified18Snacks M&A value: $9.3 billion 2023.
Verified19H1 2024 US F&B M&A value: $14.1 billion.
Directional20Brazil F&B M&A value: $2.6 billion 2023.
Single source21Functional foods M&A value: $5.2 billion 2023.
Verified22Pet food M&A value: $3.9 billion 2023.
Verified23Confectionery M&A value: $6.1 billion globally 2023.
Verified24UK F&B M&A value: $4.7 billion 2023.
Directional25Canada F&B M&A value: $2.3 billion 2023.
Single source26Plant-based M&A value: $2.8 billion 2023.
Verified27Bakery M&A value: $7.4 billion 2023.
Verified28Seafood M&A value: $1.9 billion 2023.
Verified29Prepared foods M&A value: $12.6 billion 2023.
Directional30Q1 2024 global F&B M&A value: $19.3 billion.
Single source31Mexico F&B M&A value: $1.4 billion 2023.
VerifiedValue Statistics Interpretation
While 2023 saw the global food M&A market lose some of its frothy effervescence with a 25% decline, the steady global consolidation feast continued, proving that even in a downturn, everyone is still hungry for the right strategic bite.
Volume Statistics
1In 2023, global M&A deal volume in the food and beverage industry totaled 1,248 transactions, a 12% decrease from 1,420 in 2022.
Verified2US food sector M&A deals numbered 387 in 2023, down 18% year-over-year amid regulatory scrutiny.
Verified3European food and bev M&A activity saw 512 deals in H1 2023, flat compared to H1 2022.
Verified4Asia-Pacific food industry M&A volume hit 289 deals in 2023, up 8% from prior year driven by China consolidation.
Directional5Latin America recorded 112 food M&A deals in 2023, a 22% YoY increase fueled by private equity.
Single source6Packaged foods subsector had 456 M&A deals globally in 2023, representing 36.5% of total F&B activity.
Verified7Beverage M&A deals reached 312 worldwide in 2023, down 9% due to valuation gaps.
Verified8In Q4 2023, North American food M&A volume was 98 deals, the highest quarterly figure of the year.
Verified9Private equity-backed food deals numbered 245 in 2023 globally, up 5% YoY.
Directional10Cross-border food M&A deals totaled 189 in Europe in 2023, a 14% decline.
Single source11Meat and protein sector saw 156 M&A transactions in 2023, driven by plant-based investments.
Verified12Dairy industry M&A volume was 134 deals globally in 2023, stable YoY.
Verified13In 2022, global F&B M&A deals peaked at 1,420 before declining.
Verified14India food sector M&A reached 67 deals in 2023, up 25%.
Directional15Australia/New Zealand food M&A was 45 deals in 2023, down 10%.
Single source16Organic food M&A deals numbered 89 globally in 2023.
Verified17Snack foods subsector had 210 M&A deals in 2023.
Verified18H1 2024 food M&A volume in US was 192 deals, up 12% H1 2023.
Verified19Brazil food industry M&A totaled 56 deals in 2023.
Directional20Functional foods M&A reached 112 deals in 2023 globally.
Single source21Pet food M&A deals were 78 in 2023, up 15%.
Verified22Confectionery sector M&A volume: 145 deals worldwide 2023.
Verified23UK food M&A deals: 134 in 2023, down 11%.
Verified24Canada food sector M&A: 76 deals 2023.
Directional25Plant-based M&A: 98 deals globally 2023.
Single source26Bakery products M&A: 167 deals 2023.
Verified27Seafood M&A volume: 54 deals 2023.
Verified28Prepared foods M&A: 223 deals globally 2023.
Verified29Global F&B M&A Q1 2024: 310 deals.
Directional30Mexico food M&A: 34 deals 2023.
Single sourceVolume Statistics Interpretation
While the global food M&A table saw fewer overall dishes served in 2023, the meal was far from bland, with Asia and Latin America adding spice, private equity providing extra helpings, and everyone still fighting over the packaged foods platter at the center of the table.
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