GCG’s Q2 2025 Food & Beverage Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

• The second quarter of 2025 reflected a market in transition: Emerging brands with strong margins and sourcing discipline are outperforming, while legacy portfolios adapt to regulation and shifting consumer expectations.
• Beyond the label, value is being redefined: Clean labels are table stakes. Buyers focus on scalability without sacrificing trust, costs, or supply chain resilience. FDA’s ban on petroleum-based dyes underscores compliance as credibility.
• Middle of the market is squeezed: Consumers trade up for function or down for value, pushing heritage brands out. Divestitures rise as strategics pivot to faster-growth categories.
• M&A activity remains strong but selective: Deals favor platform fit and scalability over brand equity, with buyers prioritizing infrastructure alongside innovation.

See here for all Food & Beverage News and Updates

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