Industry Trends
Despite a pullback in overall deal volume, Q2 2025 was a strong quarter for the Consumer industry. Deal value rose 54% QoQ, demonstrating that quality companies are still receiving premium valuations from both strategic and financial buyers.
The Food & Beverage sector led the way, with acquirers targeting category expansion, synergistic capabilities, and brand consolidation.
Market Dynamics
- Q2 2025 produced unpredictable market conditions, as recent tariff implementations, inflationary risks, and overall trade policy uncertainties impacted the economy. Consumer confidence levels fell to their lowest point since 2022 as overall economic uncertainty lingered.
- Discretionary spending remained under pressure, as essential goods were in higher demand than discretionary and luxury items. That said, E-Commerce sales continued their robust growth trajectory, nearing their Q2 2020 peak levels.
- US automotive sales saw heightened growth in early Q2 2025, as the anticipated tariff impact produced strong sales surges in April and led to reduced automotive inventory levels. However, continued market uncertainty and shifting trade policies slowed growth in the Automobile market as the quarter closed.
- Unemployment remained virtually unchanged in Q2 2025, as the US labor market retained a cautiously optimistic outlook.
- Although pricing pressures impacted the Food Service and Food & Beverage industries, the continued preference for healthy lifestyle choices had a positive impact on both restaurants and manufacturers that offer these products.
Learn More
Reach out to Dinan Capital Advisors Managing Director Lisa Kaufman for more report insights.
