Sector Performance

In 2025, consumer sector M&A showed a cautious but strengthening recovery as stabilizing inflation and firmer valuations supported renewed dealmaking. Investors remained selective, favoring premium, scalable brands — particularly in food, wellness, and specialty household products — amid uneven consumer demand.

Strategic buyers pursued portfolio optimization and consolidation, while private equity focused on disciplined add-ons and operational improvements. Despite subdued volumes, deal values rose, driven by high-profile transactions and improving credit conditions, with growing investor confidence pointing to stronger momentum in 2026.

Hogan Lovells Activities

In 2025, our Consumer team supported clients through a period of continued market repositioning, advising on transactions amid persistent geopolitical uncertainty, evolving trade and tariff dynamics, and heightened regulatory scrutiny across global markets.

We worked closely with consumer businesses on strategic acquisitions driven by geopolitical changes, digital transformation, AI-enabled retail, and the increasing importance of consumer data and changing consumer demands. Our work reflected a growing focus on operational resilience and technology enablement. We also contributed to industry thought leadership, including serving as editors of Panoramic – Luxury and Fashion 2025, a global guide offering insights into the sector's evolving landscape.