M&A Trends in the Agri-Food Sector: 2024 Market Overview

Continuing the trajectory of 2023, the year 2024 was marked by a complex economic environment, characterized by moderate inflation, a gradual stabilization of interest rates, and increasing demands related to ecological transition. These shifts have profoundly impacted the agri-food sector, which remains heavily influenced by regulatory changes while facing margin pressures and growing sustainability expectations.

This report explores the key trends in mergers and acquisitions (M&A) within the agri-food industry in 2024, highlighting the strategic approaches adopted by major players to navigate these challenges and capitalize on opportunities in a rapidly evolving market.

The French Agri-Food Industry Under Pressure: Shrinking Margins and Changing Consumer Behavior

In 2024, the French agri-food sector operated in a transitional economic context, marked by the end of food inflation, which had peaked at +22% between 2021 and 2023. While this price stabilization brought relief to consumers, it concealed ongoing structural pressures for manufacturers.

Rising Production Costs Despite Disinflation

Despite the disinflation trend initiated in 2023, two-thirds of agri-food manufacturers reported an increase in production costs in 2024. This was largely due to rising expenses across multiple cost categories:

• Labor costs increased by 4.8%, reflecting ongoing tensions in the labor market.
• Transport costs rose by 4.3%, still affected by persistent logistical constraints.
• Industrial raw materials saw a 3.7% increase in prices.
• Agricultural raw materials experienced a more moderate rise of 1.6%, with variations depending on commodity types and climatic factors.
• Energy costs, while stabilized compared to the record highs of 2022, still increased by 2.4%, adding to the operational burden.

Eroded Margins and the Shift Toward Low-Cost Products

These cost increases directly impacted profitability, with 45% of agri-food companies reporting declining margins in 2024, marking the third consecutive year of contraction. This situation has constrained investment capacity, making it more challenging to modernize production tools and transition towards more sustainable models.

At the same time, consumer behavior has undergone significant changes, driven by budget constraints and an increasing focus on value for money. Two major trends have emerged:

1. The rise of private-label brands and promotions, driving prices downward as households prioritize affordability.
2. A sustained (or even reinforced) interest in premium and sustainable products, driven by the philosophy of “consuming less but better.”

These trends are pushing manufacturers to rethink their positioning and adapt their commercial strategies to navigate this evolving landscape.

Restructuring and Market Shifts in the Retail Sector

A Wave of Consolidation in Retail

In 2024, the French retail landscape saw significant restructuring. Carrefour acquired Cora and Match, strengthening its footprint in the northeast of France. Meanwhile, Intermarché and Auchan divided parts of Casino’s assets following the group’s financial difficulties. These transactions reflect a strategic consolidation among traditional players as they adapt to new market realities.

M&A Market Overview: French Companies Looking Abroad

A Resilient M&A Market Despite Economic Pressures

AURIS Finance recorded 128 M&A transactions in the agri-food sector in 2024 (compared to 132 in 2023) involving at least one French counterparty (either as buyer or seller).

Among these, 15 transactions were led by French companies outside of France, with notable deals including:

• Lactalis and Sodiaal acquiring General Mills‘ North American yogurt operations
• Bridor (part of Groupe Le Duff) acquiring Dutch bakery company Pandriks Bake Off B.V.
• Solina Group expanding internationally with acquisitions in Finland (Puljonki Oy), Denmark (Oscar A/S), and the UK (Rich Sauces).

Investment Funds Remain Highly Active

Private equity funds played a significant role in 2024, participating in 66 out of 128 transactions (52% of the total).

Key highlights include:

• The merger of Cerea Partners and Demeter, forming Demea Invest in early 2025.
• FrenchFood Capital’s expansion, following its merger with Agro Invest, through investments in JC David, Huguenin, and Plantin.

Additionally, fund-to-fund transactions increased, such as:

• Capza’s exit from Groupe Saint-Aubin, acquired by Antilles-Glaces (advised by AURIS Finance).
• The restructuring of Sophie Lebreuilly bakeries, where Cerea Partners and a group of minority investors acquired stakes, reducing FrenchFood Capital’s shareholding and leading to Generis‘ exit.

Private equity-backed industrial expansion also played a key role in 2024. A standout example was Beillevaire, which secured funding from Unigrains to acquire Curé Nantais, Fromagerie de la Houssaye (advised by AURIS Finance), and Fromagerie de Vinay.

Key Strategic Trends in 2024

1. Portfolio Rationalization

To combat margin pressures, some agri-food giants focused on streamlining operations and divesting non-core assets.

For example, Olga (formerly Triballat Noyal) optimized its portfolio by:

• Selling Fromagers de Tradition (Hardy & Segré to RIANS; Curée Nantais and Fromagerie de la Houssaye to Beillevaire).
• Divesting its Plant-Based Catering division to Ariv.
• Selling Ugalait, its artisanal cheese distribution subsidiary, to Savencia.

2. Consolidation Strategies

Other players pursued strategic acquisitions to enhance competitiveness and diversify their businesses.

• NewBeers Group acquired La Fameuse Fabrique (advised by AURIS Finance), expanding its craft beer portfolio and optimizing production, distribution, and innovation capabilities.
• Vertu Food acquired La Fraîcherie, becoming the leading fresh-cut fruit and vegetable kiosk supplier in supermarkets (also advised by AURIS Finance).

3. Sustainable Growth: Renewed Interest in Organic & Alternative Products

Consumers are increasingly mindful of their environmental impact and seeking better consumption choices, driving agri-food players to shift towards more sustainable products such as organic, plant-based, and alternative proteins. This transformation, fueled by growing societal demand and tightening regulatory requirements, is pushing companies in the sector to pursue strategic synergies to strengthen their market position.

A prime example of this trend is Go Nuts, a Lyon-based SME specializing in organic spreads and purees. By joining forces with Juste Bio – Un Air d’Ici, a key player in the organic dried fruit and seeds market (advised by AURIS Finance), Go Nuts gains access to its partner’s industrial capabilities and extensive distribution network, accelerating its growth. At the same time, Juste Bio – Un Air d’Ici expands its organic portfolio by entering the complementary spread segment, further solidifying its position in a booming market where product diversity and quality are key to consumer loyalty.

4. International Expansion

Expanding into international markets remains a key priority for agri-food manufacturers looking to diversify their outlets, particularly in emerging markets and premium segments.

In this context, La Compagnie des Desserts, a specialist in high-end frozen desserts, has strengthened its international presence with the acquisition of UK-based Didier’s Pâtisserie. This transaction enables La Compagnie des Desserts to expand its footprint in the British market while enhancing its product portfolio with Didier’s Pâtisserie’s renowned artisanal expertise. In return, the UK company gains access to the resources and commercial expertise of its new shareholder, supporting its European expansion and reinforcing its position in the premium segment.

Bernard GAUD, M&A Agri-Food Expert at AURIS Finance, commented:
“Despite ongoing margin pressures and rising production costs, 2024 saw strong M&A activity. Industrial players pursued two key strategies: rationalization to refocus on core activities and consolidation to enhance competitiveness. The increasing involvement of private equity, which accounted for over 50% of deals, highlights the sector’s attractiveness and the crucial role of financing in driving these transformations.

Key industry trends are becoming more pronounced: the rise of sustainable products, the resurgence of organic goods, and international expansion. In 2025, companies will need to accelerate their adaptation strategies to balance growth and resilience.”