The report below gives a good overview of the Summer 2026 M&A activity in the Food and Beverage Industry Sector. The global food and beverage market is projected to reach $9.31 trillion by 2030, representing a 5.9% compound annual growth rate over the forecast period. Protein costs were the primary driver of US food inflation in the second quarter of 2026. US food prices rose 3.1% in the twelve months through May 2026, with food away from home up 3.5% and food at home up 2.7%. The USDA lowered its full-year 2026 food-inflation forecast to 3.2% from 3.4% in April. The US cattle herd fell to 86.2 million head as of January 1, 2026, its lowest level in 75 years. Drought across major cattle-producing states and elevated feed and fuel costs have driven continued herd liquidation rather than rebuilding them. The national average retail beef price reached a record $9.64 a pound in April, coinciding with the herd contraction. Egg prices fell 35.2% year over year to $2.19 a dozen in May, as flocks recovered from the 2024-2025 avian-flu culls. Bird flu returned to poultry flocks in twelve states by late June, which could raise egg prices again within six to eight weeks. On trade policy, the administration cut tariffs on imported farm and construction equipment to 15% from 25%, effective June 8. On the agricultural outlook, the USDA's June WASDE report cut the wheat farm price by $0.50 a bushel to $6.00, with only minor changes to the corn and soybean balance sheets. Recovering egg supply, eased trade tariffs, and stable grain markets are on track to position the food and beverage industry for continued demand growth through the remainder of 2026.
Posted by Terry Fick.