Food Processing in Brazil M&A Movements Analysis¶
M&A Movements¶
The Brazilian food processing industry has seen dynamic merger and acquisition (M&A) activity, with a notable increase and expected continued growth in 2025, following R$ 13.80 billion invested in M&A in 2024 by the industry. [1, 5, 10] While the overall volume of M&A transactions in the food and beverage sector saw a decrease in 2024 compared to the preceding years (2021-2023), the transaction value increased, indicating larger deals are taking place. [2, 7, 10, 14, 15] This trend is expected to continue in 2025, driven by a more favorable economic scenario, including an expected decrease in interest rates, normalized supply chains, and increased interest from private equity funds. [2, 3, 4, 5]
Strategic motivations are key drivers behind these M&A movements. Companies are pursuing acquisitions to strengthen their core businesses, expand into new product categories and markets, diversify their portfolios, and consolidate their market position within the value chain. [2, 3, 4, 5, 6] This is observed across different stages of the food processing value chain, from agricultural inputs to retail and food service. The consolidation trend is not limited to a single segment but is a broader movement impacting various parts of the agribusiness and food sector. [6, 7]
While specific major M&A deals solely within the Brazilian food processing sector for 2024-2025 with extensive public details on their impact are not uniformly available across all sources, the overarching trend of increased consolidation and strategic acquisitions is clear. One significant transaction mentioned with an impact on the Brazilian market, although its exact date within the 2023-2024 period is sometimes cited as a 2023 example, is Minerva Foods' acquisition of 16 slaughterhouse plants in Latin America from Marfrig, a deal anticipated to double Minerva's production capacity. [11] Another notable M&A in the broader food and beverage sector impacting the retail stage in Brazil was the acquisition of Carrefour by Grupo BIG Brasil. [2] The plant-based protein sector in Brazil is also experiencing a trend towards consolidation through M&A, reflecting the growing importance of this segment. [8]
Globally, significant M&A deals in 2024 demonstrate the strategic directions being pursued by major food and beverage companies, which often have a ripple effect on the Brazilian market. Examples include Mars' acquisition of Kellanova (Pringles), Campbell's Soup's acquisition of Sovos Brands (Rao's pasta sauces), and PepsiCo's acquisition of Siete Foods (ethnic and healthy foods). [2, 3, 4, 5] These global movements highlight a focus on expanding snack portfolios, strengthening presence in specific food categories, and venturing into healthier and ethnic food segments.
The increase in M&A activity, particularly strategic acquisitions and consolidation, is expected to reshape the competitive landscape of the Brazilian food processing industry in 2025 and beyond.
Table of the impact of these movements¶
| Value Chain Stage | Impact of Major M&A Movements |
|---|---|
| Agricultural Production | Increased demand for raw materials from consolidated processing companies. Potential for more formalized contracts and supply chain integration, but also risks of increased power imbalances for smallholder farmers dealing with larger, more dominant buyers. [1, 6] |
| Processing/Agroindustry | Increased market concentration in specific segments (e.g., meat, grains), potentially leading to reduced competition and increased market power for acquiring entities. [6] Opportunities for companies to expand product portfolios and achieve economies of scale through acquisitions. [2, 3, 4, 5] Divestitures can lead to restructuring and focus on core profitable areas. [4, 5, 15] |
| Distribution | Consolidation at the retail level (e.g., Carrefour acquiring Grupo BIG Brasil) increases the bargaining power of large buyers over processors and distributors. [2, 6] May lead to rationalization of distribution networks and potentially impact smaller, independent distributors. |
| Retail/Food Service | Increased consolidation among major retail chains, impacting their relationships with suppliers and potentially influencing product availability and pricing for consumers. [2, 6] Growing M&A activity in the plant-based and healthier food sectors can lead to a wider variety of these products available to consumers. [8] |
| Overall Value Chain | Increased vertical and horizontal integration as companies seek greater control and synergies across different stages. [6, 9] Potential for improved efficiency and innovation driven by larger, more resourceful entities. Challenges for small and medium-sized enterprises to compete with consolidated giants and potential exclusion from certain supply chains. [1, 6] Increased flow of investment into the sector. [1, 5, 10] |
References¶
- Faturamento da Indústria de alimentos cresce 10% em 2024 - Agência Brasil - EBC. https://agenciabrasil.ebc.com.br/economia/noticia/2025/02/faturamento-da-industria-de-alimentos-cresce-10-em-2024
- Fusões e Aquisições Vão Aumentar na Indústria de Alimentos e Bebidas em 2025 - Forbes. https://forbes.com.br/money/2025/01/fusoes-e-aquisicoes-vao-aumentar-na-industria-de-alimentos-e-bebidas-em-2025/
- Fusões e Aquisições: O Crescimento do Setor de Alimentos em 2025 - Qualyvac. https://qualyvac.com.br/fusoes-e-aquisicoes-o-crescimento-do-setor-de-alimentos-em-2025/
- Fusões e aquisições devem crescer no setor de alimentos em 2025 - BHB FOOD. https://bhbfood.com.br/fusoes-e-aquisicoes-devem-crescer-no-setor-de-alimentos-em-2025
- Fusões e Aquisições vão aumentar na Indústria de Alimentos e Bebidas em 2025 - FoodBiz. https://foodbiz.com.br/fusoes-e-aquisicoes-vao-aumentar-na-industria-de-alimentos-e-bebidas-em-2025
- Desafios para a defesa da concorrência no setor agroalimentar - JOTA. https://www.jota.info/opiniao-e-analise/artigos/desafios-para-a-defesa-da-concorrencia-no-setor-agroalimentar-07032024
- Brazil's M&A activity signals rebound in the short term, advisors say - ION Analytics. https://ionanalytics.com/news/brazils-ma-activity-signals-rebound-in-the-short-term-advisors-say/
- Pesquisa analisa o avanço da indústria plant-based no Brasil - Portal e-food. https://portalefood.com.br/noticias/pesquisa-analisa-o-avanco-da-industria-plant-based-no-brasil
- Brazil's Agribusiness Economic Miracle: Exploring Food Supply Chain Transformations for Promoting Win–Win Investments - MDPI. https://www.mdpi.com/2071-1050/14/6/3473
- ABIA: indústria de alimentos criou 72 mil empregos diretos em 2024 - número de trabalhadores na cadeia produtiva chega a 10,4 milhões; 10,1% do total das pessoas ocupadas no Brasil 21/02/2025. https://abell.com.br/noticias/abia-industria-de-alimentos-criou-72-mil-empregos-diretos-em-2024-numero-de-trabalhadores-na-cadeia-produtiva-chega-a-104-milhoes-101-do-total-das-pessoas-ocupadas-no-brasil
- M&A in Brazil: International Buyers Act While Domestic Acquirers Show Caution. https://www.bain.com/insights/brazil-ma-report-2024/
- O Mercado de Fusões e Aquisições no Brasil: O crescimento do middle market em 2024 - Portal Fusões & Aquisições. https://fusoesaquisicoes.com/mercado-de-fusoes-e-aquisicoes-no-brasil-crescimento-do-middle-market-em-2024/
- Teaching Case #13: - Sementes Agroceres SA and the Consolidation of Agribusiness in Brazil - NTNU. https://www.svt.ntnu.no/geo/Ansatte/Inderberg/Teaching/TF_ETC%20case%20study.pdf
- CDI Global Highlights RGS's 2024 M&A Brazil Report, News / Insights. https://www.cdiglobal.com/news-insights/cdi-global-highlights-rgss-2024-ma-brazil-report
- Food & Beverage M&A Report: Q4 and year-end 2024 - CohnReznick. https://www.cohnreznick.com/insights/food-beverage-m-and-a-report-q4-and-year-end-2024