The report below gives a good overview of the Fall 2021 M&A activity in the Food and Beverage Industry Sector. The global functional foods and beverage market was valued at $281.14 billion in 2021, as per research published by Statista. The market is predicted to grow at a CAGR of about 9.5 % between the forecast period 2021 and 2028. Asian consumers are set to double their spending on food to more than $8 trillion by 2030 according to a joint report by PwC, Rabobank and Temasek. The demand would be driven by health-conscious and digitally savvy consumers. However, higher commodity prices and continuous supply chain disruptions are forcing food and beverage brands, manufacturers, and retailers to develop new strategies to safeguard profits while retaining market share. Food-related commodity prices are expected to rise in 2021 because of several factors, including higher demand from China, tighter supplies due to harsh weather occurrences, and anticipation that the Biden administration will prioritize biofuels investment. Retailers and food manufacturers are also facing the challenge of rising freight and transportation costs. Going forward, the increasing demand for organic foods and beverages, rising penetration of organized retail, continued technology development, and rising population is anticipated to propel future growth.
Posted by Jurgen van Dijk.