Key food and beverage investment trends for 2022
A report has been published that outlines the food and beverage trends that are likely to represent strong returns in 2022. Published by Grant Thornton, the Bite Size Dealtracker 2021 report examines trends for mergers and acquisitions, and IPO activity, for food and beverages for the year and makes some suggestions on what is looking ripe for investment in 2022. Here is a summary of its top five predictions:
1. Craft beer
Craft beer will continue to hold Australian interest and as consumption of it and craft cider continues to grow, the field will represent a potential point of investment. The number of transactions in the Australian brewery sector currently represents 4% of Australian deals and that number is expected to grow in the next year.
2. Pre-packaged meals
This year has seen an increase in the pre-packaged food trend. It’s the return of the TV dinner, but not as we know it — gone are the fish fingers and soggy frozen vegetables, and instead Australians are enjoying fresh vegetables, tender meats, healthy sides, and a variety of sauces from a range of cuisines in a pre-packed and convenient serve. Pre-packaged meals make up a component of the packaged foods and meats subsector which continued to account for the majority of all deals, and is expected to maintain its lead in FY22.
3. New technology and innovation
Food and beverage producers are enthusiastically embracing new technologies within the production and operational process and this is helping them to stay on top of their game. While the size of the agricultural products sector has not increased in the last year, it has stayed consistent and is expected to do so for the next year too. Additionally, carbon capture technology is due to have a stronger presence for buyers in the future.
4. Plant-based ‘meats’
Plant-based ‘meats’ are increasingly popular thanks to both their health and environmental benefits and consumers are drawn to them when they want to try something new without straying too far from their comfort zone.
5. Distillers and Vintners
Finally, distilleries and winemakers accounted for over a fifth of acquisitions in 2021 and their clever responses to dealing with the pandemic have meant they’ve done well during this last year. The trend looks set to continue in 2022, with a predicted rise in mergers and acquisitions.
The full Bite Size Dealtracker report for the year is available for download here.
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