The food industry is relatively insensitive to the economic climate, because food is a basic necessity of life. But there is considerable competition in this industry, and increased attention to sustainability and eco-friendly manufacturing.
The differences between the food industry and the hospitality industry are diminishing, leading to new commercial concepts and a growing need for online visibility. All these changes demand a purposeful strategy, which in turn makes the food industry interesting for investors.
Eating pure, locally produced, and healthy food is important to consumers, who are become more and more interested in the origin of food industry products and often prefer organically-produced and plant-based items. Sustainability and a smaller ecological footprint are also significant issues for packaging, food processing, and transport.
A parallel consumer trend is the increasing role of convenience goods as the world continues to rapidly digitalise, providing the impetus for new concepts and large-scale investment. Responding to these developments requires substantial changes throughout the whole supply chain, so collaboration and integration are key. This in turn leads to more business acquisitions and a higher degree of consolidation in the food industry. The market is continuously in motion, with strategic players and private equity buyers noticeably active.
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The food industry includes companies active throughout the entire food chain, from companies that produce raw materials and agricultural products, to food processers and the wholesalers that supply companies in the retail, hospitality, and catering industries – the final links in the chain that supplies the consumer.
Retail companies are increasingly focused on food service, and exploring the possibilities of adding hospitality and catering to their strategy and their offer to customers.
Developments in health, sustainability, and convenience, and other consumer-driven trends, will continue to lead to business acquisitions. In order to fully leverage available growth opportunities, entrepreneurs are in search of strong partners that bring not only capital to the table, but also knowledge and expertise.
Well-performing companies remain interesting for private equity companies. Entrepreneurs favour growth through acquisition – often through a buy-and-build strategy – above organic expansion, especially when expanding internationally.
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for food companies and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets. Our specialists will use their knowledge and experience proactively to help you find the right successor or implement your growth strategy.
Contact us now for more information.