Caution continues to define the pace of M&A in the consumer markets, as dealmakers navigate a turbulent landscape shaped by economic uncertainty and shifting consumer preferences.
The M&A outlook for consumer markets in the remainder of 2025 remains mixed. Transaction volumes are down, but a surge in deal value – driven by megadeals – signals renewed confidence at the top end of the market. Private equity firms are adapting with more flexible transaction structures, while digital transformation continues to drive deal activity, particularly where technology-led differentiation supports long-term value creation. Dealmakers who pair strategic clarity with decisive execution will be best positioned to capitalise on opportunities – whether through valuation gaps, carve-outs, or consolidation plays. Read on for insights into global and Swiss consumer markets M&A trends.
At the beginning of 2025, we were cautiously optimistic for a steady rebound in consumer markets deal activity. But persistent inflation, unexpectedly high long-term interest rates, and ongoing tariff uncertainty have dampened both investor confidence and consumer sentiment – key drivers of M&A in the sector. As a result, overall activity remains muted. Looking ahead, we expect investors to remain selective, with extended deal timelines and cautious portfolio reviews becoming the norm. Valuation gaps continue to pose a challenge to closing transactions.
Nonetheless, despite slower deal volumes, we see encouraging signs that point to underlying resilience and future momentum in consumer markets M&A:
1. Strong deal value signals strategic confidence
Global consumer deal values rose 32% year-on-year, supported by a few high-profile transactions. These highlight continued confidence in long-term consumer demand and the importance of scale, even in a cautious market.
2. Portfolio reshaping and selective private equity activity
We expect strategic buyers to continue optimising portfolios and pursuing consolidation. While the PE exit environment remains difficult – due to extended holding periods and liquidity pressures –outcomes will depend on asset quality and sector dynamics. High-quality assets are likely to find buyers, while underperforming or tariff-exposed assets may be held longer until market conditions improve.
3. Digital transformation as a key M&A driver
Digital innovation is accelerating dealmaking, especially in retail. Companies are acquiring technologies to enhance customer engagement, streamline operations, and strengthen e-commerce and planning capabilities. Those investing in integrated digital ecosystems are positioning themselves for long-term growth and differentiation.
Consumer market M&A volumes and values in 2025
In the first half of 2025, M&A activity in consumer markets saw a volume decline of around 9% year-on-year – a somewhat better performance than the approximately 11% drop in overall global M&A volumes. At the same time, the total value of consumer deals rose by roughly 32%, largely due to the announcement of seven megadeals (transactions over $5bn) in the first half of 2025, up from four during the same period last year.
The regional picture was mixed. In Asia Pacific, deal volumes fell by 7%, though India stood out with a 29% increase. Overall deal value in the region rose by 25%, driven mainly by three major supermarket deals in Japan worth in total over $10 billion. In EMEA, volumes and values declined by 2% and 10%, respectively, amid macroeconomic pressures and geopolitical uncertainty, including concerns over new US tariffs. In the Americas, deal volumes dropped 22%, while values jumped 71%, led by large US transactions. In Latin America, a 4% volume decline was offset by higher deal value, thanks to a major port transaction.
From food to fashion to travel: what’s driving consumer M&A in 2025
We expect the following key trends to drive M&A activity in the consumer markets sectors for the remainder of the year.
And what about M&A in the Swiss consumer markets?
In our 2025 outlook for consumer markets in Switzerland, published at the beginning of the year, we identified the following four key trends shaping domestic dealmaking:
- Digital transformation and AI integration
- Portfolio optimisation and divestitures
- Inbound investment and cross-border M&A
- Consumer resilience amid economic fluctuations
So how have these trends driven M&A activity so far in 2025? Clearly, the last two had the largest impact on the M&A market with the transition to the new US administration at the beginning of 2025. As expected, investors paused to see what President Trump’s second term would bring. They didn’t have to wait long: on April 2, 2025, the first wave of tariffs was announced. Switzerland was first given a 31% tariff, followed by an increase to 39% on Swiss National Day (August 1). While the tariffs were applicable cross-industry, the consumer markets subsectors of watches, jewellery, food, and clothing were all affected. The prestigious label “Made in Switzerland”, which represents high quality and for which consumers traditionally were willing to pay a premium, was being challenged. As a result, GDP growth in Switzerland fell to 0.1% in the second quarter, down from 0.7% in the first quarter, while unemployment remained steady at 2.6% in August 2025, according to the State Secretariat for Economic Affairs (SECO).
What does this mean concretely for the Swiss M&A market in the first half of 2025? After a steep decline in the fourth quarter of 2024, Swiss deal volumes have stabilised in the first half of 2025. However, deal volumes remain 40% below the levels of the first half of 2024, with 24 deals recorded versus 40 in the prior-year period. What has been the focus so far for Swiss M&A activity? In line with the four key trends of our 2025 outlook, transactions involving targets with Swiss headquarters have centred on the second trend: portfolio optimisation and divestitures. Major retailers such as Migros-Genossenschafts-Bund have concentrated on shedding non-core businesses (e.g. Micasa and Hotelplan Holding AG) acquired over the years to refocus on their core, while at the same time investing in consumer experience initiatives. This return to the core is especially important for Migros, which celebrates the 125th anniversary of its founder Gottlieb Duttweiler in 2025. Similarly, another corporate bellwether, Nestlé, has announced plans to dispose of its water and struggling vitamins brands during a period of management shake-ups to revive growth.
Looking ahead to the remainder of 2025, we see cautious optimism for deal activity. While the Swiss consumer markets M&A landscape remains challenging overall, signs of resilience are emerging. Strategic buyers who actively navigate the increased geopolitical complexity with boldness and focus can turn uncertainty into opportunity.
We continue to see Switzerland’s consumer markets M&A in 2025 fuelled by strong inbound investment, as global buyers seek stability and market access. In the second half of 2025, we anticipate companies will continue to optimise their portfolios through strategic divestitures. Despite geopolitical tensions, resilient consumer spending, low unemployment, and low inflation continue to make Switzerland an attractive investment hub.”
Mark Mallet,Partner, Consumer Markets Leader, PwC SwitzerlandM&A industry trends in Switzerland
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Mark Mallet