Introducing the 2025 Mid-Year Food & Beverage Manufacturing Sector M&A Overview
CLICK HERE TO READ THE FULL REPORT
Australia’s food and beverage manufacturing sector has proven itself as one of the most resilient and strategically important segments in the nation’s mergers and acquisitions (M&A) landscape. Despite navigating a challenging environment marked by elevated interest rates, supply chain disruptions, and global uncertainty, the sector continues to attract robust transaction activity and investor confidence. The newly released 2025 Mid-Year Food and Beverage Manufacturing Sector M&A Overview by Morgan Business Sales provides critical analysis, insights, and a comprehensive review of recent transactions – essential reading for business owners, investors, and industry stakeholders.
Sector Resilience and Strategic Appeal
With annual revenues surpassing $131 billion and employing more than 270,000 Australians, food and beverage manufacturing remains the cornerstone of Australia’s manufacturing industry. Over the past five years, total M&A transaction value has exceeded $5 billion, with most deals falling in the $2 million to $1 billion range. This sustained activity is underpinned by the sector’s defensive characteristics, strong barriers to entry, and the ongoing premiumisation trend that continues to reshape consumer demand and product development.
Key M&A Trends for 2025
-
Consolidation and Growth: The sector has seen significant consolidation, particularly in dairy, beverages, specialty foods, and plant-based alternatives. Landmark deals—such as Bega Cheese’s acquisition of Lion Dairy & Drinks and Lion’s purchase of Fermentum Group—have reshaped the competitive landscape, driving premium valuations for established brands with strong market positions.
-
Mid-Market Momentum: The mid-market segment remains highly active, with strong buyer interest in businesses demonstrating operational excellence, innovation, and robust customer relationships. EBITDA multiples typically range from 6x to 12x, with premium brands commanding the upper end of this spectrum.
-
Strategic Drivers: Acquirers are increasingly targeting businesses that offer supply chain integration, export market expansion (especially into Asia), and innovative, health-focused product portfolios. The surge in demand for premium, functional, and plant-based products is a key catalyst for recent M&A activity.
Market Outlook and Opportunities
Looking ahead, M&A activity is forecast to remain strong, driven by both domestic and international buyers seeking scale, efficiency, and innovation. Australia’s stable economic environment, legal transparency, and growth potential make it an attractive market for strategic and financial investors alike. As the sector matures, opportunities will favour businesses that can demonstrate brand authenticity, product innovation, and operational excellence.
For business owners considering a sale or acquisition, understanding these market dynamics and valuation trends is essential to maximising value and achieving successful outcomes. The 2025 M&A Overview from Morgan Business Sales is your go-to resource for navigating this dynamic market with confidence.
Click here to read the full report and position your business for success in Australia’s thriving food and beverage manufacturing sector.
For a confidential, obligation-free discussion about how these insights could apply to your business, or to explore your options, contact the Morgan Business Sales team today.
Contact Morgan Business Sales
📞 1300 577 297
📩 support@morganbusinesssales.com
💻 www.morganbusinesssales.com
Further insights:
How to sell a Food Manufacturing
Further Insights:
