Resource | Baker Tilly Capital Insider
Food and beverage M&A update: H2 2025
March 2, 2026
Navigating shifting waters in the food and beverage M&A landscape
The following report developed by Baker Tilly Capital, LLC provides an update on the food and beverage mergers and acquisitions (M&A) market in the second half of 2025. The report includes an overview of the market performance, M&A activity, transactions by segment and buyer and U.S. middle market M&A activity.
Download the full report to explore detailed market analysis and deal breakdowns.
Here are some key takeaways from the report:
Public market performance
The food and beverage sector experienced weak overall public market performance in H2 2025, influenced by persistent cost pressures, value‑driven consumer behavior and elevated raw material and tariff costs. Consumers increasingly sought savings by shifting to private‑label products while others gravitated toward better‑for‑you and functional offerings. Private label continued to outperform national brands, reaching record revenue levels. The no‑ and low‑alcohol category expanded significantly, supported by younger demographics and broader wellness trends, while functional beverages such as prebiotic sodas, nootropics and hydration products saw rising demand.
Subsector and valuation trends
Per the Baker Tilly Capital Food & Beverage Index, results varied widely. Agribusiness was the only subsector that grew, while beverage, branded packaged goods, natural/organic and snacks saw declines. Valuation multiples continued to soften from their 2021–2022 highs, with both EV/EBITDA and EV/revenue metrics trending downward across most categories. Despite industrywide compression, beverage and snack companies maintained the strongest relative multiples.
