Food and drink manufacturers are more optimistic than any other sectors’ leaders about the prospect of M&A activity in 2025, according to new research from legal firm Browne Jacobson.
Around five in six (84%) of leaders in the UK and Irish food and beverage industry expected an increase in M&A in the sector over the next year, with the same number predicting a rise in private equity investment.
“Despite cost and supply chain pressures – now worsened by changing tariffs – food and drink manufacturers remain highly confident,” said Sam Sharp, partner and head of food & drink at Browne Jacobson.
“This reflects what we’re seeing in practice, with rising M&A activity in early 2025.”
Paul Kirkpatrick, partner and head of manufacturing and industrials, added: “We also expect continued consolidation.
“Acquisitions will be central to growth, especially in expanding product lines and reaching new markets. Investor appetite is particularly strong in areas like alcohol-free drinks, healthy food and free-from products – categories that pair innovation with lower exposure to trade volatility.”
Sharp added that business’ use of diversification to attract investors – a tactic 65% of leaders said they were using – was a standout trend.
“This not only improves appeal but strengthens resilience,” Sharp said.
Kirkpatrick pointed to the 96% of respondents that identified technology and IP as key drivers of value for their brands as “no surprise”.
“As trade pressures grow, digital and automated businesses stand out for their efficiency and adaptability.”
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