Food & Beverage

The food and luxury food industry is one of the most important industrial sectors in Germany. As Europe's largest food producer and third-largest food exporter on the world market, Germany contributes significantly to the overall development of the industry. Approximately 618,000 people are employed in about 6,000 companies, most of which are medium-sized.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Volker Ruhl

Current Developments

Plant-based alternative products are in vogue

Recent consumer trends are mainly influenced by a number of profound societal changes. For example, an ageing population is driving demand for health and wellness, as well as for functional foods to prevent or combat diseases such as diabetes, high blood pressure and cholesterol.

Growth Rates

2020

+0.1%

2021

+1.5%

2022

+1.4%

Trends

Alternative meat, fish, and dairy products

Companies plan to transition from traditional livestock farming to a more sustainable model based on the production of animal products from cell cultures.

Transactions

Our Sector Transactions

0

Highlight Transaction

C. Hahne Mühlenwerk GmbH & Co. KG x Krüger GmbH & Co. KG

Number of M&A transactions - DACH region, 2021 (as of August)

409

Significant Transactions

Hormel Foods X Kraft Heinz (Nuts Business) (2021)

Raizen Energia X Biosev (2021)

Future trends

As a result of increased health awareness among the population, the market for alternative meat and dairy products will continue to grow strongly. Companies are already starting to plan cell-based production of meat, fish and dairy products in the laboratory. At the same time, the trend towards sustainability and regionality will continue to gain importance. Meat consumption in Germany in 2020 reached a historic low. The consumption behaviour of the population is changing continuously.

Our View

The food and beverage industry is significantly influenced by changes in consumer behaviour of the population. The megatrend towards sustainability has a direct impact on companies in the industry. Plant-based alternative products are becoming increasingly important. As a result, the fragmented German market, consisting of over 6,000 mainly medium-sized companies, is facing increasing consolidation pressure.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"Changes in consumer behaviour have a significant impact on medium-sized companies in particular. It is more important than ever to be able to react as flexibly and dynamically as possible to changing demand."

Volker Ruhl

Partner

Sector Update

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