There was a shopping spree in the consumer and retail (C&R) M&A market in 2021. A total of 3,135 deals involving U.S.-based C&R companies were announced—up 33.5 percent from 2020 and nearly matching the level in pre-COVID-19 2019. Total deal value soared to $225 billion, an increase of 40.7 percent over the previous year. (See the charts below for more)
C&R deal making was driven by a couple of trends gaining momentum since the COVID-19 recession of mid-2020: accelerated digitization to reach online customers and rising demand for health and wellness products and services.
In 2021, other notable C&R trends included:
- Private equity firms, with over $2 trillion in dry powder, were the most active buyers
- In retail, the number of deals for e-commerce properties more than doubled, as strategics beefed up online capabilities
- Companies continued to optimize portfolios, divesting slow growers and acquiring growth vehicles
Looking ahead to 2022, the upward trajectory is likely to continue. According to a recent KPMG survey of C&R executives, 60 percent said they expect to increase their transactions in the coming year. But high valuations and a possible shift in consumer spending—away from purchasing goods toward re-engaging in social activities—could make deal-making more complicated for many firms.
CnR Deal Volume and Deal Value
Consumer Deal Volume and Deal Value
Retail Deal Volume and Deal Value
Our Q4’21 report unpacks these trends and what’s ahead—with deep dives on three topics:
Download the full report to uncover what is happening in these dynamic sectors, how deals are being done today—and why.