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Market Monitor: Food & Beverage

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Market Monitor: Food & Beverage

Making the right decisions for your business starts with having the most accurate and current information available. Our Food & Beverage  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry’s M&A trends.

Reflecting on 2023: Economic Impacts on M&A

In 2023, the US food and beverage industry faced its fair share of economic challenges, from fluctuating interest rates to geopolitical tensions, inflationary pressures, supply chain disruptions, and more. Despite these hurdles, the industry exhibited resilience, with strategic M&A deals shaping its trajectory. The U.S. Food & Beverage M&A volume was down a modest 7.6% from 2022 levels, compared to a decrease of 23.0% in total U.S. M&A volume over the same period.

Spotlight on Resilience

Amidst economic uncertainties, companies in the food and beverage sector showcased remarkable resilience. By adapting to evolving consumer preferences and market dynamics, these businesses demonstrated their ability to thrive in challenging environments.


Certain sub-sectors within the food and beverage industry emerged as focal points for M&A activity. Companies in the fragmented Value-Added Ingredients and Flavors & Fragrances sub-sectors remain attractive targets, with those maintaining strong R&D expertise commanding premium valuation multiples.

Recent examples include SK Capital’s acquisition of J&K Ingredients, Redwood Holdings’ acquisition of Newly Weds Foods, and Archer-Daniels-Midland’s acquisitions of both Revela Foods and FDL.

Redefining Manufacturing Dynamics

The outsourcing of manufacturing processes has reshaped the industry landscape, enabling companies to optimize operations and focus on core competencies like sales and marketing.

Recent examples include Clayton, Dubilier & Rice’s acquisition of Shearer’s Foods and Sunny Sky’s acquisition of Bevolution.

Looking Ahead: Food & Beverage M&A Trends

As we look to the future, early indicators suggest a more favorable M&A deal-making environment in 2024 based on anecdotal observations from our own processes and conversations with business owners as well as buyers, both strategic and financial. 

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director:

Johnny Sherwood, Director: