Table Of Contents
- M&A deals by multinational giants driving industry growth
- Innovations and partnerships creating favorable opportunities in the market
- Launch of innovative products by leading brands accelerating sectoral growth
- Technological advancements opening new avenues for growth in the industry
- Geographic expansion and other developments boosting the industry
- The final word
Roshan Deshmukh
Koyel Ghosh
Food and Beverages Domain in Q1 2025: Highlighting the Role of Partnerships, Innovations, and M&A Deals in Industry Growth
In the last few years, the rise of vegetarianism and veganism has created numerous investment opportunities in the food and beverages domain. Furthermore, the growing pace of industrialization and urbanization has led to changes in dietary habits and preferences, thus increasing the demand for packaged food items. Moreover, the busy daily schedules and hectic work routines of people living in metropolitan cities have resulted in a surge in demand for frozen edibles, thus widening the scope of the sector. Additionally, technological advancements in food processing have helped the landscape flourish in recent times. Along with this, a study by Allied Market Research highlights that various industry stakeholder actions such as strategic alliances, product launches, and partnerships with other companies have played an important role in the growth of the domain in Q1 2025. This newsletter covers such important developments in the sector and analyzes their positive impact on the landscape.
M&A deals by multinational giants driving industry growth
In January 2025, Flowers Foods, Inc., a bakery and confectionery shop company, announced the acquisition of Simple Mills, a snacks and cookies manufacturer, for $795 million. Over the years, Simple Mills has gained a reputation for its high-quality and nutrient-dense cookies, snack bars, and baking mixes. With more than 30,000 natural and conventional stores across the United States, it has become one of the leading firms in the F&B domain. The acquisition by Flower Foods, Inc., is expected to help the company boost its revenue share in the domain in the coming period.
In March 2025, Woodland Gourmet, a commercial food business, issued a press release stating that it had signed a definitive agreement to acquire Sevillo Fine Foods, a ready-to-eat frozen ingredients manufacturer. The business move is predicted to expand Woodland Gourmet’s product portfolio, thereby strengthening the position of the firm in the retail and food service segments. Moreover, the acquisition is anticipated to help both companies pool their resources to offer customized products and flavors as per their customers’ tailored needs.
Again, in March 2025, Craveworthy Brands, a multi-brand restaurant business, reported the acquisition of Kinnam?ns, a cinnamon roll maker based in Oregon. Known for its Caramel Apple Pie, Maple Bacon, and Cookies and Cream, Kinnam?ns has quickly become a popular brand in the bakery segment with a large customer base across the region. The acquisition by Craveworthy Brands is, thus, expected to expand the company’s footprint around the world in the coming period.
Innovations and partnerships creating favorable opportunities in the market
In January 2025, Oatly Group AB, the world’s largest oat drink brand, announced a partnership with Nespresso, a coffee company. Under this collaboration, both companies have agreed to jointly develop and launch a limited-edition coffee-flavored oat drink for its loyal customer base. Known as Nespresso’s Oatly Barista Edition coffee, the product has been launched in Paris, Shanghai, New York, and London. The oat drink will be made available in more than 15 countries, including, the US, the UK, and Australia.
Once more, in January 2025, McDonald’s, a fast casual restaurant chain, announced a collaboration with Angel Reese, one of the biggest icons in US basketball history, to launch the world’s first-ever female athlete meal. The meal includes a BBQ Bacon Quarter Pounder®, World Famous Fries®, and a beverage of choice. Jennifer Healan, the Vice President of Marketing at McDonald’s, stated that McDonald’s has always played an important role in supporting basketball in the country and this partnership will help the brand connect with loyal fans around the world more effectively.
In February 2025, The Coca-Cola Company, a multinational soft drink company, released a press statement that reported that the company had partnered with FIFA, the international governing body of association football, for its FIFA Club World Cup 2025™. The tournament will be held in June and July 2025 and 32 best-performing clubs will be taking part in it. Coca-Cola has been a part of stadium advertising at every FIFA World Cup tournament for the last 75 years, and this collaboration is expected to strengthen their ties in the coming period.
Launch of innovative products by leading brands accelerating sectoral growth
In January 2025, OREO, a sandwich cookie brand, announced the launch of various permanent and limited-edition products, including OREO Game Day, OREO Irish Creme THINS, Golden OREO Cakesters, and frozen OREO treats. The new product launches are predicted to expand the consumer base of the company and improve its brand image in the coming period.
In February 2025, Beyond Meat, Inc., a major player in the plant-based meat industry, reported the expansion of its product portfolio by launching new products in its Beyond Steak segment. The two newly launched flavors, Beyond Steak Korean BBQ-Style and Beyond Steak Chimichurri, deliver unique taste and nutrition, thus making it a healthy and delicious snack. Certified by the American Heart Association's Heart-Check program, the product complies with all the necessary nutrition criteria of major health organizations across the world.
In March 2025, Impossible Foods, a meat substitute manufacturer, unveiled a plant-based steak product, Impossible® Steak Bites. The succulent, meaty flavor offered by these pre-cooked bites has made them a popular food item among its consumers. Furthermore, the company, in its press release, has highlighted that the food item features essential nutrients such as vitamin B, fiber, and iron.
Technological advancements opening new avenues for growth in the industry
In January 2025, Chick-fil-A, a leading fast-food chain, issued a press release stating that it had started using robots at its Bay Center Foods facility to automate most of the tasks related to lemon juice production. As per an internal survey conducted by the company, this shift toward automation has helped the business save about 10,000 work hours per day, thus improving the efficiency and productivity of the company.
In February 2025, Swiggy, an online food delivery platform, announced the launch of an imitative to provide biodegradable cutlery, including a spoon, a fork, and a tissue with every food on train order. Rolled out across more than 50 major railway stations across India such as Pune, Bengaluru, Baroda, Prayagraj, etc., the program has gained a lot of acclaim due to its focus on sustainability.
Geographic expansion and other developments boosting the industry
In February 2025, JBS USA, a major food company, released an official statement announcing its decision to invest $200 million in investments in various beef production facilities in Texas, Cactus, and Greeley. The business move is aimed at expanding the manufacturing capacity and catering to the various demands of their consumer base in the region. Furthermore, the capital infusion is anticipated to help the business build resilient supply chains, thus improving its profitability in the long run.
In March 2025, Cargill, an American food corporation, announced the inauguration of its new corn milling plant in Gwalior, Madhya Pradesh, India. Established by Saatvik Agro Processors, an Indian food processing company, the production facility with an initial output capacity of 500 tons has been specifically instituted for corn starch derivatives and associated products. The expansion is expected to aid Cargill in serving its customers in Central, North, and Western India.
One more time, in March 2025, Dine Brands International, a full-service restaurant company, issued a press statement highlighting its plans to expand its dual-branded Applebee’s and IHOP concept. The strategy also involves the company’s entry into the Costa Rican market, thus enabling the firm address to the demands of a wider audience base. The restaurant chain aims to adapt to the local customs, cuisines, and cooking styles to improve its revenue share in the region.
The final word
The food and beverage industry is anticipated to experience exponential growth in the near future due to the changing dietary preferences of people across the globe. Additionally, the transition toward veganism is predicted to boost the revenue share of the domain in the coming period. Moreover, the launch of innovative products, M&A deals, and partnership agreements between different companies is projected to create numerous profitable opportunities in the sector.
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