IMAP GERMANY FOOD & BEVERAGE REPORT 2026
Current Developments in the FOOD & BEVERAGE Sector
The European Food and Beverage sector remains a resilient arena for mergers and acquisitions, despite facing geopolitical and to some extent related supply chain disruption risks. Steadily rising production output in the majority of its subsegments, partly supported by improving consumer confidence and evolving consumption patterns, and robust buyer appetite are underpinning sustained M&A activity across the sector.
Report Insights and Market Developments
IMAP Germany’s Food & Beverage Sector Report provides an overview of the key structural developments shaping the European market. The report analyzes major consumer trends, recent M&A activity across the sector, and the historical development of valuation metrics. In particular, it highlights how a growing focus on functional nutrition and an increasing emphasis on premium quality are influencing market dynamics and transforming both product innovation and strategic investment decisions.
Key Trends in Food & Beverage M&A and Consumer Demand
The European Food and Beverage sector is evolving by aligning with two converging consumer trends: First, the increasing demand for functional nutrition, where consumers actively seek products that deliver tangible health benefits, such as improved digestion, immunity or performance. As functional propositions continue to move into mainstream retail, transparency, natural ingredients, clean labels, and scientific credibility have become key purchasing criteria. Second, the ongoing premiumization of food products, driven by a growing focus on superior taste, brand credibility, and ingredient quality. Importantly, premiumization does not necessarily imply higher prices, as consumers increasingly shift from lower-quality branded products toward more affordable offerings, indicating a growing tendency to prioritize quality and value for money over brand. Together, these trends are reshaping product portfolios, distribution strategies, and investment dynamics across the industry.
Mid-Market Deal Activity and Consolidation Trends
The industry is also experiencing sustained consolidation activity. In recent years, more sellers have come to market as they reassess their long-term positioning and consider whether they remain properly structured and competitive in light of persistent economic uncertainty. Strategic buyers in particular continue to play a dominant role in acquisitions, as scale advantages and cross-selling opportunities become increasingly important in a highly competitive market environment. At the same time, succession challenges among family-owned businesses and rising regulatory requirements are prompting many owners to evaluate strategic options.
Sector Outlook for Investors and Market Participants
The report outlines the most important developments, opportunities, and challenges for market participants, investors, and entrepreneurs in the European Food and Beverage sector.
Report Highlights:
- Resilient M&A market: More than 2,000 Food & Beverage transactions were recorded in Europe between 2023 and 2025, reflecting sustained investor appetite despite macroeconomic uncertainty
- Functional nutrition growth: The European functional nutrition market reached approximately USD 115 billion in 2025 and is expected to grow at a CAGR of around 7.9% until 2030
- Premiumization trend: Consumers increasingly prioritize high product quality, free-from, plant based or organic ingredients, and credible health claims over brand reputation alone
- High cross-border activity: Around 53% of transactions in the DACH region involve cross-border buyers, underlining the international nature of the sector
- Strategic buyers dominate: In the DACH region, strategic acquirers account for c. 80% of transactions as companies seek scale, synergies, and portfolio expansion
- Succession-driven transactions: Thousands of family-owned food producers and artisanal businesses across Europe face generational transitions, creating opportunities for strategic partnerships and consolidation
Download the Full Report
Explore the key trends shaping European Food & Beverage M&A, from mid-market deal activity to valuation dynamics and evolving consumer demand. IMAP advises entrepreneurs, corporates, and investors on cross-border transactions across the sector, combining deep local expertise with global reach. Download the full report or contact IMAP to discuss current opportunities and your strategic options.
Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
