Home > Rabobank report looks at challenges food ingredients suppliers face as industry changes

Rabobank report looks at challenges food ingredients suppliers face as industry changes

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Due to the fragmentation of the food ingredients’ industry and the lack of mid-sized players, acquisitions are so essential that industry players are willing to pay high multiples for available targets.

A new global report from Rabobank 's Food and Agribusiness Research and Advisory division looks at the changing international industry landscape and the challenges facing food ingredients suppliers.

Key points of this global report of the challenges food ingredients suppliers are facing include:

  • food ingredients have been a hot industry for mergers and acquisitions since 2010 and in the past six months several large merge and acquisition transactions have taken place simultaneously
  • the average multiples paid for companies in the food ingredients industry are higher than in other food sectors
  • the food ingredients industry remains a particularly attractive investment
  • most of the challenges facing food ingredients suppliers can be overcome by thoughtful acquisitions, divestment of non-core assets and internal rationalisation
  • further consolidation is expected but not in all sectors.

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