The consumer sector in Q3 2025 was marked by continued caution and volatility due to global supply chain pronouncements.
As a result, the M&A environment has prompted continued restraint within some consumer subsectors and newfound optimism and activity in others. Sellers that remain impacted by foreign tariffs are hesitant due to uncertainty (like the newly imposed tariffs on household goods).
Sellers in consumer businesses that are either U.S. based and are positively impacted by tariffs or aren’t impacted as severely are seeing financial performance improve and become more consistent, which is driving an increase in M&A activity. Consumer businesses that are focused on resilience in non-discretionary or premium categories are better protected from broad economic swings. This stability is attracting significant investment and fueling strategic M&A focused on market expansion and gaining competitive share.
Please reach out to us if you would like to begin exploring strategic alternatives for your business.