2025: Translink CF’s megatrends shaping the evolving Food & Beverage M&A industry

The Food & Beverage (F&B) sector is undergoing transformative change, driven by global megatrends, lifestyle shifts, and the ongoing need for sustainability and innovation. Our Translink Corporate Finance Food & Beverage M&A Industry Insights Report FY24 unpacks the trends informing the current landscape and the megatrends set to shape the industry next year.

Current Global Megatrends Currently at Play:

1. Environmental Pressures
   Climate change is reshaping food security and driving adoption of sustainable practices, including regenerative agriculture and water-efficient solutions like vertical farming. Vertical farming, which reduces water use by up to 98%, also lowers food miles and promotes chemical-free cultivation.
2. Economic Uncertainty
   Inflation and rising living costs have shifted consumer behaviour towards prioritising essentials. Studies reveal a 90.66% increase in spending on primary necessities, reflecting how financial pressures shape purchasing decisions.
3. Technological Advancements
   Innovations such as genome editing, precision fermentation, and 3D-printed foods are enabling the creation of new product categories and improving production efficiency. These technologies respond directly to shifting consumer demands for healthier, ethical, and sustainable food options.

2025 Megatrends Set to Shape the Industry

1. Sustainability-Driven Innovation
   Sustainability will dominate the agenda, with businesses focusing on reducing carbon emissions, minimising waste, and embracing regenerative agriculture. These efforts are driven by rising consumer expectations, stringent governmental regulations, and environmental challenges.
2. Tech-Enabled Food Production
   Technological advancements, including AI, automation, precision fermentation, lab-grown proteins, and vertical farming, are set to revolutionise food production. These innovations will drive efficiency, cost reduction, and the development of alternative protein products, attracting investors aligned with ESG goals.
3. Health-Conscious Consumption
   Personalised nutrition will become a cornerstone of health-conscious living. Consumers will demand data-driven food solutions tailored to individual dietary needs. Emerging markets, such as GLP-1 for weight management, are expected to exceed $100 billion by 2030, reflecting a significant growth opportunity.
4. Supply Chain Resilience
   Geopolitical instability and climate-related events have highlighted vulnerabilities in global supply chains. Businesses will invest in creating agile and transparent supply chains to mitigate risks, ensure operational stability, and meet growing demands for reliability and transparency.

Lifestyle Shifts Reshaping Consumer Expectations:

1. Natural, Nutritious Diets
   Health-conscious consumers are moving towards naturally nutritious diets, reducing processed ingredients, and embracing holistic wellness. This trend is redefining the industry’s product development priorities.
2. Mental Health and Diet
   With global obesity rates climbing, consumers are focusing on wellness-driven consumption that connects physical and mental health. WHO data shows a significant rise in obesity since 1990, intensifying the demand for health-supporting food solutions.
3. Conscious Living
   Consumers are actively reducing food waste, recycling, and seeking locally sourced, sustainable products. These behaviours reflect a growing connection to food origins and a desire for environmental and ethical accountability.
4. Demand for Transparency
   Transparency regarding ingredient sourcing, production practices, and supply chain ethics has become crucial. Brands integrating authenticity into their operations can gain a competitive advantage as consumers increasingly value ethical considerations.

The Investment Landscape

Brands embracing these megatrends—sustainability, technology, and health-conscious innovation—are attracting significant investor interest. Businesses demonstrating transparency and strong sustainability credentials are particularly appealing for M&A activity.

With 25 dedicated F&B specialists, Translink Corporate Finance leverages global expertise to support companies in navigating these transformative forces. By aligning with these trends, businesses can drive growth, foster resilience, and secure their position in the evolving F&B landscape.

Read more in our report: https://translinkcf.com/reports/translink-cf-ma-food-beverage-insights-fy2024/