In Q1 of 2024, the number of closed deals in the food and beverage sector experienced a decrease of 21.3%, totaling 63 deals compared to 80 in Q4 of 2023. Strategic acquirers remained the most active as opposed to private equity-backed acquirers. There is speculation among analysts that deal volume might see a slight uptick in the upcoming quarters if the inflation stabilizes. Despite the presence of substantial dry powder, activity among financial buyers has diminished due to limited access to cost-effective debt. This has led to a deceleration in private equity fundraising and extended holding periods for portfolio companies. As the U.S. witnesses significant reductions in inflation, it is suspected that anticipated interest rate reductions in the latter half of 2024 may stimulate a surge in M&A activity within the food and beverage sector.