GCG’s Q3 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:
- Value and function drive choice: Consumers split between premium functional products and upgraded private label, with younger shoppers showing less loyalty to legacy brands.
- M&A stays selective but steady: Deal count fell to 114 (vs. 138 in Q2), but average value rose to $88M. Buyers remain selective, favoring platforms aligned with modern consumer expectations and operational scalability.
- Markets reward efficiency: Distribution and retail outperform on stable operations, while branded goods face pressure from private label and SKU rationalization.
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