In Q1 2025, the Food & Beverage industry sustained robust M&A activity, fueled by evolving consumer preferences, regulatory shifts, and a favorable financing environment.

Key takeaways include:

• Health and Premiumization Trends: Consumers continue to gravitate toward clean-label, organic, and functional products, while demand for premium, artisanal, and globally inspired foods remains strong. These preferences are driving growth in areas like ready-to-drink cocktails, functional beverages, and international snacks.

• AI and Tech-Enabled Optimization: Food and beverage companies are increasingly investing in AI to optimize demand forecasting, inventory management, and ingredient substitution. These tools reduce waste and enhance profitability while simplifying formulations without sacrificing quality.

These trends underscore a dynamic 2025 outlook, with innovation, health-conscious offerings, and consolidation expected to drive continued deal activity.