KBS - Food Manufacturing - Market Insight

The industry is poised for growth driven by the following factors:

+ PLANT-BASED & HEALTHY FOODS Growing appetite for plant-based, organic, and health-oriented products. + EXPORT OPPORTUNITIES High-quality British products expanding into international markets post-Brexit. + CONSUMER-CONVENIENCE FOODS Demand for ready-to-eat, meal kits, and premium convenience foods. + SKILLS SHORTAGES & TALENT GAPS Addressing the lack of skilled workers through training and automation.

+ SUSTAINABILITY DRIVES Increasing demand for eco-friendly production, reduced food waste, and sustainable sourcing. + TECHNOLOGY & AUTOMATION Investments in smart manufacturing and Industry 4.0 technologies to improve efficiency. + SUPPLY CHAIN RESILIENCE Focus on securing robust supply chains in response to global disruptions. + TIGHT MARGINS & COST PRESSURES Heightened need to control input costs and improve operational efficiency. + PRIVATE EQUITY INTEREST Strong investor appetite for established brands and scalable operations.

+ CLEAN LABEL & TRACEABILITY Increased focus on transparency and cleaner ingredient profiles.

These trends not only reflect changing consumer priorities but also highlight areas where M&A activity and investment are likely to grow, positioning the sector for dynamic development in the coming years.

Over the last year, we have seen multiples as high as 10x for KBS Corporate clients within the food manufacturing and distribution sector. Just short of 3,500 investors and acquirers have registered their interest with KBS Corporate for companies in the food manufacturing and distribution sector.

The food manufacturing sector in the UK is projected to grow by 25% from 2023 to 2027, driven by increased demand for sustainable practices, advancements in automation and smart manufacturing, and a growing market for plant-based and health-conscious products.