Articles
06 July 2026
The Greek food & beverage sector navigated a mixed macroeconomic environment in Q1 2026, as easing commodity costs, evolving trade dynamics and indirect geopolitical risks shaped conditions across the industry. At its March meeting, the ECB kept interest rates unchanged at 2.0%; however, analysts expect the ECB to tighten monetary policy further, with a 25bps rate hike anticipated at either the April or June meeting, as policymakers aim to contain second-round inflation effects stemming from the war in the Middle East. Separately, the newly signed EU-Mercosur trade agreement is expected to increase competition within the EU market.
Greek F&B companies continued to upgrade and expand their production facilities in Q1 2026, investing in automation and advanced technological equipment to increase capacity, streamline operations and optimise production. Portfolio expansion was a parallel priority, with companies broadening their product ranges to address evolving consumer preferences, particularly the growing demand for convenient, high-protein options.
Greek private equity funds continued to hold significant dry powder, actively pursuing high-growth F&B companies to support their global expansion. This was reflected in a number of recent transactions across the sector, including EOS Capital Partners' investment in Koukakis Farm to support the company's export growth ambitions.
On the public markets, the Global Packaged Foods index held up better than the broader market in Q1 2026, limiting its decline to approximately 2%. Performance diverged sharply at the sub-sector level: ingredients outperformed all other F&B sub-sectors, supported by strong demand for clean-label, customised and organic ingredients, while dairy was the weakest quarterly performer amid a global milk oversupply and the resulting collapse in commodity prices. Valuation multiples compressed across most sub-sectors, as softer demand, volume pressure and persistent input cost inflation reduced earnings visibility.
M&A activity in European food & beverage declined by approximately 19% quarter-on-quarter in Q1 2026, reaching its lowest quarterly level in the past three years. Strategic buyer appetite remained resilient but more targeted, with acquirers focused on addressing specific product and category gaps rather than pursuing broad-based consolidation. Looking ahead, companies with scale, export orientation and a clear position in high-growth trends are best placed to remain attractive to both strategic and financial buyers as the market continues to reward quality over volume.