Facts, Trends and Tendencies to look out for in the Consumer & Retail Sector

The Consumer & Retail sector is a dynamic landscape, and mid-cap M&A in 2025 reflects several key trends:

1. E-commerce Dominance: The rise of e-commerce continues to reshape the retail landscape. Mid-cap companies with strong e-commerce platforms, robust omnichannel strategies, and data-driven insights are highly sought after. This includes companies that excel in areas like digital marketing, logistics, and customer experience.
2. Experience Economy: Consumers are increasingly prioritizing experiences over material possessions. This is driving M&A activity in sectors like experiential retail, travel and tourism, and entertainment. Companies that offer unique and memorable experiences are attracting significant investor interest.
3. Sustainability Focus: Sustainability is no longer just a buzzword; it’s a critical factor for consumers and investors alike. Mid-cap companies with strong sustainability credentials, such as those focused on ethical sourcing, eco-friendly packaging, and social responsibility, are highly valued in the M&A market.
4. Brand Building and Innovation: In a crowded marketplace, strong brands are essential for success. Mid-cap companies with iconic brands, innovative product offerings, and a loyal customer base are attractive acquisition targets for larger companies seeking to expand their market share and diversify their portfolios.
5. Private Equity Influence: Private equity firms continue to play a significant role in the consumer and retail sector, actively seeking to acquire undervalued assets and implement operational improvements to enhance profitability. This has led to an increase in leveraged buyouts and private equity-backed acquisitions.
6. Consolidation: Consolidation is also happening in this industry and driving M&A. It can be seen i.e. in e-commerce landscape. It is also very popular amongst PEs more and more focusing on building international platforms
7. Internationalisation: Being international becomes a must and M&A is a perfect alternative to rather slower organic growth

These trends are shaping the M&A landscape in the consumer and retail sector, as companies strive to adapt to changing consumer preferences, leverage technology, and build sustainable businesses in a competitive and evolving market.