After gaining strong momentum toward the end of 2024, Latin America’s M&A market has slowed significantly in 2025. In the first quarter, the region recorded 630 announced and closed deals, an 11 percent decline in volume and a 27 percent drop in value year-on-year, according to a report published by TTR Data. The CEO of a leading LatAm consumer company remarked, “In Chile, Peru, Colombia and Bolivia, there’s been little to no M&A activity of note.” However, the CEO did add that “aggressive growth via acquisitions wouldn’t be surprising, especially in low-growth economies where inorganic expansion is often the fastest route.”  

Yet while aggregate numbers suggest a cooling market, a deeper look reveals that food-related M&A, still has some appetite. Consumer staples offer stability in uncertain times, while progress, especially around plant-based products and Artificial intelligence (“AI”), is opening new growth avenues. Companies are seeking scalable, recognisable brands with efficient supply chains and strong local ties. The chief executive noted, “Global players like Nestlé and Suna may show more interest in Mexico, while LatAm companies expanding into the US - as Bimbo and Cencosud did - remain a growing trend.” 

Indeed, this dual movement (being inbound interest from global players and outbound expansion from Latin American champions) is a defining feature of 2025. Mexico, in particular, is expected to see heightened activity thanks to its large domestic market and proximity to the US. 

When it comes to consolidation, both corporate giants and local contenders are actively positioning themselves. “Local players can have an edge if they’re large enough and have strong cash flow. Alicorp is one example,” stated the executive. At the same time, “international buyers are active as well, thanks to their scale and ability to retain talent.” In the dairy segment, Peru’s Gloria is already making moves. “Gloria made an acquisition in Ecuador earlier this year and could continue expanding,” commented a source. Meanwhile, in Chile, Carozzi is seen as a potential acquirer, though Luchetti, now part of Nutresa, is less likely to pursue deals. 

“Local players can have an edge if they’re large enough and have strong cash flow. Alicorp is one example.”

CEO of a leading consumer company, LatAm

Private equity funds and institutional investors, once dominant drivers of food M&A, are now pulling back in some countries, most notably Colombia. “There has been a noticeable decline in funds entering Colombia to recycle capital,” explained a senior counsel member working at a global law firm. “Firms like Brookfield and others are currently in the process of divesting, as their investment timelines have come to an end.” Political uncertainty tied to the 2026 elections is compounding the slowdown, with “2025 shaping up to be a quiet year for M&A activity, quieter even than 2024,” remarked the senior counsel member. 

Family-owned and mid-market food businesses continue to play a major role in the region’s M&A dynamics. These firms often control legacy brands, have deep consumer trust and dominate local distribution channels, making them attractive acquisition targets or potential consolidators themselves. While these companies may lack the scale of global giants, they benefit from agility and local insight. Groups like Gloria and Carozzi exemplify how mid-market entities are stepping up their acquisition strategies. 

AI is on the menu with companies deploying this technology across product development, marketing and internal support. A notable example is NotCo, a Chilean plant-based company that uses its proprietary AI platform “Giuseppe” to develop new recipes.  

Still, as tasty as this may sound, the financial markets are not yet rewarding AI adoption, as the consumer company chief executive acknowledged, “It’s not yet transformational in terms of company valuation.” Sectors like “finance, insurance and healthcare” are more likely to see disruption. The legal practitioner explained, “It is still too early for this to have a direct impact on valuations. Before that happens, regulatory developments will need to take place.”

“It is still too early for this [AI] to have a direct impact on valuations. Before that happens, regulatory developments will need to take place.” 

Senior counsel member working at a global law firm

That said, AI is helping companies cut costs and boost performance. Tools such as image-based price monitoring, automated content creation and internal chatbots are already in use. These cases may not yet justify higher valuations, but they do offer a competitive edge that can matter in M&A negotiations. 

As we enter the second half of 2025, macro uncertainty persists in parts of the region. Companies with strong cash positions, operational flexibility and strategic vision will be best positioned to lead the next march. Whether inbound or outbound, AI-powered or family-owned, the food M&A story in Latin America is still worth keeping on the menu.