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Summer 2022 | M&A Report In The Food and Beverage Industry Sector

By Jurgen van Dijk

September 19, 2022

The report below gives a good overview of the Summer 2022 M&A activity in the Food and Beverage Industry Sector. The global food and beverages market was valued at $6.0 trillion in 2021, and is expected to reach $6.4 trillion by 2022, growing at a CAGR of 9.7%, during the period 2021-22, as per a report by The Business Research Company. The market is forecasted to grow at a CAGR of 8.7% to reach $9.0 trillion in 2026, as per the same report. The food and beverage industry has been in distress due to challenges including post-pandemic global demand, harsh weather, diminishing food stocks, high energy prices, supply chain worries, export limits, and taxation. The current convergence of all these factors followed by Russia's-Ukraine conflict has led to global food inflation. The food Consumer Price Index (CPI) has increased significantly in all of Europe's major economies, while the CPI in the United States has increased by more than 14.0% points in May 2022, as compared to January 2020. It is anticipated that price hikes would be substantial throughout the year as manufacturers pass on higher input costs to consumers. Brand awareness and the ability to differentiate from competitors would be crucial in attracting customers in the inflationary environment. There is still a lot of uncertainty and different economic scenarios that might occur during the year. However, companies that use scenario planning and consider dynamic variables would be able to strategically respond quickly to the evolving market conditions.

Posted by Jurgen van Dijk.

Read the Entire Summer 2022 Food and Beverage Report Here