Oghma Partners has released its 2026 M&A Review of the UK Food and Beverage Sector report, finding the UK “remained resilient despite geopolitical uncertainty”.
Overall 2025 deal activity consisted of 133 transactions, down 12% on 2024, with an aggregate value of around £2.5 billion. This was down 9% from 2024, excluding the £1.5 billion Bakkavor acquisition.
A total of 39 deals were made during Q3 2025, a 33.9% decrease year-on-year. Deal value was around £540 million, down from Q3 2024’s £612 million.
Of the deals made over the full year, 65.4% were under £10 million, down from 68.9% in 2024. However, 12% were over the value of £50 million, which was up from 9%, in line with the five-year average.
UK corporates made up 60.9% of buyers, while financial buyers and overseas acquirers made up 18.2% and 21% respectively.
Oghma highlighted that the chilled foods category saw “major consolidation”, led by the Bakkavor acquisition. The UK meat sector saw multiple consolidations, which Oghma attributed to cost pressures and a 16% meat price rise.
Mark Lynch, partner at Oghma Partners, commented: “2025 has once again been characterised by geopolitical uncertainty, yet M&A activity in the UK has remained resilient, supported by the gradual recovery of the economy. Since August 2024, the Bank of England has implemented six interest rate cuts, bringing the base rate to 3.75%.
“Inflation has held relatively steady between 3% and 4% throughout the year, with the latest CPI reading at 3.4% in December. Food and non-alcoholic beverage inflation has been more volatile, peaking at peaking at 5.1% in July before falling to 4.5% in December. Governor Andrew Bailey has indicated that rates are ‘likely to continue on a gradual downward path’.
“Nevertheless, global tensions, including conflicts in Europe and the Middle East, recent developments in South America, and emerging US tariffs, continue to add complexity and uncertainty for the UK market.”
“The standout transaction of 2025 was the Greencore/Bakkavor merger… this landmark deal represents a major development in the UK convenience food sector.”
Lynch continued: “Amid the market complexities outlined above, deal valuations have held steady at c. £2,500 million for the year. While not reflected in this figure, the standout transaction of 2025 was the Greencore/Bakkavor merger. This landmark deal represents a major development in the UK convenience food sector, creating a combined group with nearly £4 billion in revenues.
“Although total deal volume was down year-on-year, overall deal value remained robust. Higher-value transactions continued to account for a consistent share of activity, with c. 12% of deals exceeding an estimated Enterprise Value of £50 million, including c. 7% surpassing £100 million.
“UK corporate buyers dominated the market, representing 60.9% of transactions, while overseas buyers accounted for 21.1% and financial buyers 18.0%. These figures are broadly in line with their five-year averages, highlighting sustained appetite across all buyer types throughout the year.”
Oghma predicted that 2026 will potentially see limited activity, with deal values and volumes expected to be broadly in line with 2025.
