Market Monitor: Food & Beverage

Market Monitor: Food & Beverage

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Market Monitor: Food & Beverage

U.S. Food & Beverage M&A Activity in 2024

In 2024, the U.S. Food & Beverage industry saw 347 M&A transactions, marking an 8.4% increase in volume compared to 2023. This growth signals the continued strength of the sector despite broader economic conditions.

Non-Alcoholic Beverage Market Driving Investment Activity

With the global non-alcoholic beverage market projected to double over the next decade, several significant transactions have made headlines. Notable deals include:

  • PepsiCo’s acquisition of Poppi

  • Celsius’ acquisition of Alani Nu

  • Molson Coors’ majority stake in ZOA Energy

  • Keurig Dr Pepper’s acquisition of GHOST

  • Gryphon Investors’ majority investment in Spindrift

These high-profile deals reflect the growing investment potential in the non-alcoholic beverage market.

A Resilient Investment Opportunity in the Baked Goods Sector

The baked goods sector, a consistent staple of the American diet, remains highly attractive to investors, particularly in the private equity space. The sector is generally insulated from economic downturns, making it a steady investment target. Recent significant transactions include:

  • One Equity Partners’ acquisition of CraftMark Bakery

  • Platinum Equity and Butterfly Equity’s joint acquisition of Rise Baking

  • QualiTech’s (MidOcean Partners) acquisition of Ellison Bakery

These deals indicate ongoing investor interest in the baked goods industry.

Food & Beverage Contract Manufacturing Remains Attractive

Food & Beverage contract manufacturing companies continue to be highly sought after, as acquirers look to expand their production capabilities, enter high-growth product categories, and diversify their customer bases. Recent notable transactions include:

  • Falfurrias’ acquisition of Snak King

  • TruFood and Bar Bakers merging to form Tandem Foods

  • Clayton, Dubilier & Rice’s acquisition of Shearer’s Foods

These transactions showcase the increasing demand for manufacturing capabilities within the food and beverage sector.

Looking Ahead: M&A Activity in the Second Half of 2025

While M&A transaction volume in early 2025 has been slower, as is typical in the first 100 days of a new administration, the market is expected to gain momentum as President Trump’s tariff policies stabilize. Several factors suggest a more active M&A market in the second half of the year, providing new opportunities for growth and investment in the food and beverage sector.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Market Monitor: Online Retail

Market Monitor: Online Retail

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Market Monitor: Online Retail

Making the right decisions for your business starts with having the most accurate and current information available. Our Online Retail Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

U.S. Online Holiday Sales See Strong Growth with 8.7% YoY Increase in 2024

U.S. online holiday sales surged by 8.7% year-over-year (YoY) in 2024, marking the largest growth since 2020. This increase was driven by consumer demand for higher-ticket items, such as sporting goods, appliances, and electronics, with the availability of substantial discounts throughout the shopping season.

Key Holiday Shopping Stats for 2024

  • Mobile Shopping Dominates: Around 55% of purchases during the 2024 holiday season were made via smartphones, underscoring the growing importance of mobile commerce.
  • Top-Selling Categories: Electronics, apparel, and furniture & home goods together accounted for over half of the holiday sales, with each category seeing YoY growth between 7%-10%.
  • Personalized Shopping Experiences: The use of artificial intelligence (AI) and algorithms significantly increased in 2024. Retailers created hyper-personalized shopping experiences, similar to how streaming platforms recommend content. This shift resulted in higher customer satisfaction and loyalty, with 52% of consumers preferring personalized offers based on their data.

M&A Activity and Future Outlook

Mergers and acquisitions (M&A) activity remained steady from 2023 to 2024, with just under 100 deals reported annually. However, as we move into 2025, M&A activity is expected to rise due to a more favorable regulatory environment, increased investor confidence, and hundreds of billions of dollars in uncommitted capital.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: [email protected]

Johnny Sherwood, Director: [email protected]