The number of mergers and acquisitions in the consumer goods sector has recently decreased worldwide. However, seven mega deals worth over five billion US dollars (4.62 billion euros) increased the total value. These are some findings from the current study “PwC Global Merger and Acquisition Trend Consumer Markets – Mid Year ’25 Outlook”.
The number of mergers and took over in the consumer goods market decreased by nine percent worldwide in the first five months of the year
According to the study created by PricewaterhouseCoopers (PWC), the hope of recovery of takeover activities in the consumer goods sector has increasingly cooled down. This affected the areas of fashion and luxury, food and drinks, cosmetics and personal care, retail, hospitality and leisure as well as packaging. The macroeconomic environment, which is shaped by inflation pressure, changes in interest rates and uncertainties regarding tariffs, has weakened investors: inside and the mood of consumers: weakened inside. This braked the growth dynamics of the market.
The worldwide volume of the mergers fell and took over a nine percent in the first five months of the current year in the consumer goods sector compared to the same period last year. This decline was less than the minus eleven percent, which were recorded in the overall market volume. Conversely, the transaction value rose by 32 percent, supported by seven transactions with a value of over $ five billion (4.62 billion euros), which were announced in the first half of 2025.
Italian market reflects global trend
The Italian market reflects the global trend. In the first five months of 2025, 158 transactions in the consumer goods sector were announced. This corresponded to a minus of seven percent compared to the 170 transactions in the same period of the previous year. The main reason for the decline is in the transactions made by financial investors, which according to the present announcements decreased by 17 percent. Their share of the total transactions fell to 40 percent in the first half of the year compared to 45 percent in 2024. This proves the greater caution of investors: inside in sectors such as the food and beverage industry and the fashion industry.
The lead times of the transactions have been extended, which is based on a greater caution both in the actor: inside that carry out portfolio reviews and revise their strategies, as well as on the part of the private equity funds. This resulted in a growing gap between offer and demand prices.
Fashion sector becomes more selective
According to the PWC analysis, the fashion and luxury sector remains active, but becomes increasingly selective. A total of 26 transactions were recorded in Italy in the first five months of this year. That meant a decline of 26 percent compared to the same period last year. Despite the uncertain environment, large transactions such as taking over Versace by Prada show the attractiveness of the sector and the ability of strategic investors to use new opportunities even in complex complex cases and renovation candidates.
Private equity funds are still active, albeit with caution and a stronger focus on assets with stable performance and good cash flows. This is confirmed by the deals of Blue Pool Capital and Golden Goose, Alto Partners and Gallo as well as Boretti-Quadrivio and Twinset. This also applies to turnaround measures like that of Bluestar Alliance at Palm Angels.
The endeavor to consolidate supply chains more demonstrated, for example, the takeover agreements of fashion companies such as Prada and Rino Mastrotto, Richemont and Maglificio Miles, Chanel and Gray Mer, Mantero Sera, Leo France, Gentili Mosconi and Manifatture Tessili Bianchi. Examples are also activities of financial investors, such as the acquisitions of Armonia by Millefili, Sienna SA through Vicenza Mode and J Jardin by Nanan. Conversely, smaller production companies and business-to-business fashion platforms, which are supported by financial investors, record a general decline in volumes, which leads to the examination of refinancing measures.
Special dynamics in the beauty segment
With regard to mergers and acquisitions, the body care and cosmetics sector is one of the most dynamic, which is also due to a double dynamic: the interest of private equity funds and the consolidation of the supply chain by industry companies. Between the end of 2024 and early 2025 there were significant transactions in the Italian beauty sector, which contributed to strengthening its international positioning.
Give Back Beauty Angelini Beauty took over to expand his portfolio of luxury scents. Ancorotti acquired Cosmoproject and thus created a comprehensive platform for cosmetic products between skin care and make-up. In addition, the German Fund DBAG Great Lengmths took over and thus secured a leading Italian provider of professional hair extensions. The goal is now to promote the brand’s global growth.
Outlook for the second half of the year
Emanuela Pettenò, partner and Markets Deals Leader at PWC Italy, summed up the current location. “Companies in the consumer goods markets are currently disadvantaged by low ratings what investor: inside who are able to deal with operational and financial gymnastics situations,” she said in a statement. “Private equity funds will increasingly focus in the future and focus more on resistant sectors such as food and cosmetics.”
“On the acquisition page, funds could concentrate more on supplementing their portfolio and taking companies from the stock exchange, while sales of assets with below -average performance and those affected by tariffs are moved. In the areas of marketing platforms, e-commerce, payment systems and inventory management solutions, we expect renovation projects in the fashion industry and the start of brands that are still family-owned.
This article was used with digital tools translated.
Fashionunited uses artificial intelligence to accelerate the translation of articles and improve the end result. They help us make the international reporting of fashionunited a German -speaking readership quickly and comprehensively accessible. Articles that have been translated using AI-based tools are read and carefully edited by our editor: Correcting inside before they are published. If you have any questions or comments, please contact me by email to [email protected]