BGL Food & Beverage Insider

Cooking Up M&A in Spices and Seasonings

Consumers have developed a penchant for home cooking, spurred by the COVID-19 pandemic. Combine that with an increasing focus on health and wellness and broader demand for flavorful cuisine, and you have the drivers supporting continued growth within the Spices and Seasonings sector, according to an industry report released by the Food & Beverage investment banking team from Brown Gibbons Lang & Company (BGL). Investors are also spicing up their buying activity and feeding a robust M&A market.

Report Download

Managing Director

The global Spices and Seasonings market is large and growing, with revenue projected to reach $23 billion in 2026. Sales are rising as consumers dial up use of spices in meal preparation, with several key drivers expected to sustain demand:

  • The rejuvenated interest in at-home cooking is here to stay.
  • Expansion of the ever-changing consumer palate towards bold and exotic flavor profiles continues to drive sales of unique botanical, herb, and spice products.
  • Health-conscious consumers are consuming more spices and botanicals aimed at disease prevention and improved well-being, while healthy-eating trends in natural, clean-label, and plant-based alternatives are increasing demand.
  • Value-oriented consumers are exploring options in private label seasonings, a category that is underpenetrated in retail and seeing strong growth in the U.S. 

Industry players are leveraging acquisitions to gain additional scale, capabilities, and market access. Recent activity underscores an active M&A market driven by healthy investor appetite and valuations. Headlining M&A activity in 2021 is the acquisition of Olde Thompson by Olam International, a $950 million transaction that valued the business at a pre-synergy Adjusted EBITDA multiple of 11.5x. Financial buyers have been very active with a number of private equity sponsors announcing acquisitions in the last twelve months, including Incline Equity Partners (Starwest Botanicals), Audax Group (Urban Accents), Frontenac Company (Monterey Bay Spice Company), and Norwest Equity Partners (Red Monkey Foods).  

Please complete the form above to download your complimentary copy.

< View All Research