Sector Snapshot Reports Key Trends in Dealmaking Consumer

Sector Snapshot: Key Trends in Dealmaking 2 | Consumer 1 “Moderating Inflation and Steady Growth Open Path to Soft Landing,” International Monetary Fund, January 30, 2024. Introduction In the past few years, consumers worldwide have faced complex challenges spanning high inflation to volatile supply chains to variable access to raw inputs compromised by geopolitical tensions. Unfortunately, as 2024 unfurls, the landscape looks as volatile as ever. The International Monetary Fund forecasts global growth of 3.1% in 2024 and 3.2% in 2025, with headline inflation falling to 5.8% but remaining high enough that in an election year for hundreds of millions, central banks’ policies will likely continue seeking to steady growth yet curb monetary excess 1. Despite surging financial markets in many areas, consumer sentiment remains weaker thanmay be anticipated, especially in the euro area. Such macroeconomic factors are weighing on dealmaking in privatemarkets. At the emerging and innovation end of the capital and size spectrum, venture firms have pulled back markedly in the past few years, notching the lowest aggregates of deal counts in some time. M&A was more resilient, yet finally dipped in 2023 while a broader trend of gradually diminishing annual deal values continued. Consumer VC activity has taken a steep toll from market volatility Global VC deal activity – Consumer Products and Services (B2C) 1,200 1,000 800 600 400 200 0 *As of 02/23/2024. Source: PitchBook. Deal value ($B) Deal count 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 690 8,247 7,355 6,530 5,402 8,498 7,375 10,795 7,642 9,529 8,029 $160 $140 $120 $100 $80 $60 $40 $20 $0 $106 $51 $74 $45 $30 $92 $52 $135 $8 $64 $82 M&A in consumer has slowed due to a variety of factors Global M&A deal activity – Consumer Products and Services (B2C) *As of 02/23/2024. Source: PitchBook. 1,000 900 800 700 600 500 400 300 200 100 0 Deal value ($B) Deal count 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 731 7,469 6,737 6,471 6,699 8,556 6,829 8,778 8,045 $700 $600 $500 $400 $300 $200 $100 $0 6,949 6,518 $9 $606 $489 $310 $231 $446 $388 $532 $529 $469 $365