Food and beverage M&A update: H1 2024

H1 2024 food and beverage public market update

Food and beverage public market overview

The food and beverage industry is fast-paced and follows the constant changes in consumer trends. This forces operators to be agile and adaptable to ensure their offerings capitalize on current market demands. Throughout 2024, BT Capital has seen numerous recent trends continue to play out as well as the emergence of some newer trends.

• Consumers are increasingly mindful of nutritional value – There has been a shift away from taste and convenience toward items that contain key ingredients that customers are looking for. Essential nutrients, vitamins and minerals as well as key macronutrients (i.e. – proteins, fats and carbohydrates) are being scrutinized now more than ever.
• Similarly, consumers are seeking food and beverage options that align with their overall health and wellness goals – As diagnoses of chronic diseases such as obesity and diabetes continue to tick upward, consumers are taking preventative measures with their diets to promote a healthier lifestyle. Products that are lower in sugar content, support metabolism, boost energy, increase/support brain and cognitive function, reduce inflammation and improve immune health are realizing significant growth. As a subset of this trend, plant-based foods are continuing to see increased demand.
• Sustainability throughout the supply chain – From responsible sourcing to sustainable farming to animal treatment to recyclable packaging, consumers are increasingly conscious of operators’ environmental footprints. With the rise of the internet and social media, consumers have been given increased transparency into the food and beverage production life cycle.
• Branding is constantly adapting – Whether it is social media influencers promoting a particular brand or product, reviewing a new restaurant, or documenting their dining experiences while traveling, the role of social media marketing continues to drive demand, especially for Millennial and Gen Z consumers. Additionally, companies are strategically using clean, simple branding to highlight key ingredients and health benefits.
• Advances in blockchain technology and artificial intelligence (AI) are generating new use cases in the food & beverage industry – Blockchain technology allows for heightened transparency as manufacturers are able to view ingredient origins and other manufacturing processes and share findings with consumers. Advances in AI provide companies with better forecasting data.