Can The Wager On Feeding The World’s Largest Population Pay Off?

For the past decade, the discussion surrounding the Chinese economy has been focused on one question: Will China be able to transition from an export- and investment-led economy to one led by consumption?

For the smart money investing in China, the answer is an unequivocal yes. That’s why the consumer sector is the most targeted industry by China-focused private equity and hedge fund investors. That’s also the reason behind the frequent deals flows in the space.

Food and agriculture, in particular, have seen a series of big transactions this year, with total deal volume hitting a record US$1.53 billion during the first six months this year, significantly higher than all the past full-year aggregate numbers (see chart below).

The record growth is driven by increasing awareness and demand for high-quality and safe foods by the world’s largest population, as well as continued improvement in quality of life as the country’s average income steadily climbs.

Another driver is government-led consolidation. Just last week, China’s State Council unveiled plans to push consolidation in the baby-formula milk-powder industry.

Here, we highlight the top five largest deals in China’s food and agriculture sectors in the past six years, and comparative deal volume data, courtesy of data tracker Preqin.
private equity food deals

China Expert network