Insight

Betting on the consumer comeback

Consumer & retail M&A soared in 2021 as companies sought deals to help reach online customers.

Kevin Martin

Kevin Martin

Deal Advisory Leader, Consumer & Retail, KPMG US

+1 571-635-4078

Julia Wilson

Julia Wilson

ESG Strategy Leader, KPMG US

+1 404-222-3511

Jeffrey Fedele

Jeffrey Fedele

Advisory Managing Director, Accounting Advisory Services, KPMG US

+1 212-954-2967

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.

Contact us

Kevin Martin

Kevin Martin

Deal Advisory Leader, Consumer & Retail, KPMG US

+1 571-635-4078
Julia Wilson

Julia Wilson

ESG Strategy Leader, KPMG US

+1 404-222-3511
Jeffrey Fedele

Jeffrey Fedele

Advisory Managing Director, Accounting Advisory Services, KPMG US

+1 212-954-2967
Ross Colbert

Ross Colbert

Advisory Managing Director, KPMG US

+1 212-997-0500
Robert Glowniak

Robert Glowniak

Managing Director, Advisory, KPMG US

+1 312-665-2614