The year 2025 has been, for the European agri-food sector, a year of transition and clarification. After several years marked by inflation, cost pressures, and changes in consumer habits, the market is starting to show much more defined patterns about which types of companies generate genuine interest from investors and industrial groups.
Three sources are driving the market: private equity funds with dry powder that need to invest, industrial groups that cannot grow purely organically, and Family offices seeking refuge in real assets, defensive investments, and those linked to basic consumption.
What we are seeing is a process of natural selection. Capital remains active, but is directed more and more precisely towards companies with strategic positioning, differentiation potential, and structural growth potential. There is no shortage of money; there is a shortage of genuinely attractive assets. And that has generated this selective pressure: buyers no longer pay multiples for “size,” but for strategic position.
Key segments and opportunities
There are some segments within the agri-food sector for which special premiums are being paid, such as the functional and technical ingredients segment. These companies have a high level of technical dependence from their customers, which gives them greater pricing power and creates higher exit barriers. As a result, transactions in this segment can continue to close at double-digit multiples, depending on the subsector in which they operate.
On the other hand, we also encounter the Ready-to-eat segment and convenience solutions, which follow the solid growth trends it has maintained in recent years. This is driven by the structural shift in consumption we are experiencing: less time, less cooking, more ready-to-eat solutions. Ready meals platforms, cooked proteins, and chilled solutions are receiving enormous interest, especially if they have own-brand products or recurring contracts with customers, as well as a differential productive technology. In these cases, you are not just buying a productive asset, but rather a ticket to entry to a growing category.
There is finally growing interest in specialised distribution. Here we are not talking about general distributors, but specialised foodservice, premium horeca, and specialised retail (organic, gourmet, ethnic, functional). These platforms are more valuable because they control access to the end customer. That is why the large groups are buying distributors as a way to integrate the downstream market.
Generational transition
The other major market force is generational transition. Here is the real wave that is coming. In Spain, France, Italy and Portugal there are thousands of small and medium food businesses with strong brands, profitable factories and solid trading relationships …but without real succession. During 2025 we’ve already seen: many owners have moved from “I’m not selling” to “perhaps I should listen”. And in 2026 this will accelerate.
This is not financial opportunism, but a demographic reality: founders aged 60–75, children who do not want or cannot continue, companies that are too big to close but too small to professionalise on their own. This will generate a avalanche of opportunities, but also brutal selection: well-prepared businesses will sell well, those that wait too long will do worse.
Trends for 2026
De cara a 2026, nuestra previsión es clara: El dinero seguirá ahí. Los compradores seguirán activos, pero la brecha entre buenos y malos activos será mayor. Veremos más competitividad en los procesos, más estructuras híbridas (earn-outs, minorías, reinversión del vendedor) y más foco en calidad del EBITDA, no tanto en volumen.
The agri-food sector is entering a new phase. It’s not a market in crisis; it has matured. The big question is no longer whether there will be deals. The question is who will be prepared to seize them.
Conclusions
Professionalisation of M&A in the sector is no longer optional: anyone who does not come with clear numbers, a strategic narrative and the right structure will fall off the radar of major buyers.
From TAE Europa, we are aware of the particularity and importance of the agri-food sector across its entire value chain, and we support our clients in every transaction. These are unique processes for the business owner with a direct impact on many stakeholders (employees, customers, suppliers…), so it is essential to anticipate and prepare with the help of specialist advisers. Not only to maximise profitability, but also to optimise the time and energy involved, which can be a double-edged sword if not carried out correctly. During this process, the company must not lose value, and for that, the business owner must stay focused on what they know how to do: running their business.
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