F&B firms speed up mergers, acquisitions in overseas markets

As market competition becomes increasingly fierce in the Chinese food and beverage industry, companies are increasingly tapping into overseas markets to seek more resources and business opportunities.

Analysts from Beijing-based market tracker Qimingpian wrote in a survey released in April that Chinese food and beverage companies, especially those with a larger domestic market share, have accelerated mergers and acquisitions in overseas markets. Chinese companies carried out at least 31 major overseas mergers and acquisitions between 2013 and 2018.

Dairy, meat, wine, beverage and nutrition products are the sectors reporting most outbound investment by Chinese companies. Most of the targets are located in developed markets such as France, the Netherlands, New Zealand, Italy and Australia.