Deal activity ramped up in 2025 as petfood and nutrition M&A bulked up volumes, with appetite remaining strong in 2026 despite geopolitical uncertainty, according to figures out today.
Transaction numbers rose 9% year on year, with total deals up from 169 in 2024 to 184. This growth signalled renewed confidence across the market as economic conditions began to stabilise, said BDO, as the accountancy and business advisory firm compiling the figures.
Domestic food & drink activity continued to dominate, accounting for 67% of all transactions, while cross-border deals represented a third of all M&A.
Trade buyers were particularly active in the market, driving four in five deals – an increase from 72% in 2024. It highlighted renewed strategic appetite from corporate acquirers, BDO added.
Several high-profile deals shaped the sector in 2025, including the Greencore acquisition of Bakkavor and Partners Group’s agreement to acquire petfood maker MPM Products from 3i Group.
Nactarome’s acquisition of Claremont Ingredients from THG Nutrition for £103m in cash was another standout deal, BDO said.
“Deal activity in the food & drink sector accelerated in 2025, with thriving and high-value subsectors such as petfood and nutrition clearly shaping the market,” said BDO M&A partner Roger Buckley.
“With increased pet ownership, a greater focus on prioritising health and wellbeing, weight-loss drug impact, together with higher spending on premium and specialty products, this market and others will undoubtedly help to drive momentum as we move into 2026.
“M&A pipelines continue to strengthen, supported by falling interest rates, improved valuation confidence and company strategy shifts – all of which create a more favourable environment for buyers and sellers. Despite ongoing economic and geopolitical uncertainty M&A appetite remains strong.”
Alcoholic beverages remained the largest subsector for food & drink M&A with 24 deals in 2025, though activity fell 29% compared with 2024. The petfood and animal nutrition subsector saw “exceptional” momentum, with deal volumes surging by three-quarters to 21 in 2025.
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