Market Monitor: Baked Goods
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Market Monitor: Baked Goods
Making the right decisions for your business starts with having the most accurate and current information available. Our Baked Goods Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry’s M&A trends.
Resilience of the Baked Goods Industry: M&A Trends in 2024
A longstanding staple of the American diet, the Baked Goods industry has shown remarkable consistency and resilience in Mergers and Acquisitions (M&A) within the broader Food & Beverage landscape.
A Year of Steady Acquisition Activity
In 2024, strategic acquirers and private equity investors are leveraging M&A to enhance scale, foster innovation, and diversify product offerings. This trend is driven by the need to meet evolving consumer preferences.
Automation and Innovation
Despite robust M&A activity, the industry faces persistent labor challenges and rising commodity prices. Operators with automated production lines and innovative manufacturing techniques stand out as attractive acquisition targets, commanding premium valuations.
European Bakeries Entering the U.S. Market
Large European bakeries are making significant inroads into the U.S. market through M&A initiatives. Key highlights include:
- Vandemoortele’s acquisition of Banneton Bakery
- La Lorraine’s joint venture with Bakery de France
Private Equity's Role in the Baked Goods M&A Landscape
Private equity-backed strategic platforms have been particularly active in acquiring Baked Goods businesses this year. Recent acquisitions include:
- Imagine Baking by Commercial Bakeries (Graham Partners)
- Kenny’s Great Pies by Dessert Holdings (Bain Capital)
- Angelic Bakehouse by Legacy Bakehouse (Benford Capital Partners)
Future Outlook for the Baked Goods Industry
Despite a stable M&A environment in early 2024, the Baked Goods industry remains highly fragmented. A recent survey conducted by L.E.K. Consulting revealed that 87% of bakery executives plan to pursue acquisitions this year, with:
- 58% actively seeking targets
- 29% opportunistically seeking targets
As we move through 2024, the Baked Goods industry is poised for continued growth through strategic acquisitions, driven by innovation and the need to adapt to market challenges. The ongoing consolidation efforts present significant opportunities for both established players and new entrants in the market.
For more information or questions, please contact our contributors:
Rich Anderson, Managing Director: randerson@
Johnny Sherwood, Director: jsherwood@