A Hahnbeck survey shows 67% of private equity firms will increase capital deployment in 2025, prioritizing brands with strong margins and omnichannel models.
A recent Hahnbeck survey reveals that 67% of private equity firms plan to increase their investments in consumer packaged goods (CPG) in 2025. The survey included 50 firms with assets under management ranging from $250M to over $200B. Respondents cited expanding opportunities in the sector despite a minority (33%) who see fewer attractive deals. This aligns with broader trends in private equity, where firms are doubling down on resilient and profitable industries.
The focus on profitability is stronger than ever, with 92% of respondents prioritizing brands with strong profit margins. Investors now view robust margins as a baseline for investment, especially in volatile markets. Hahnbeck’s findings show that margin benchmarks vary by category, but brands exceeding these benchmarks consistently outperform peers. Firms believe strong margins ensure higher returns and better adaptability in challenging economic conditions.
Omnichannel brands are significantly more attractive than direct-to-consumer (DTC) models. Two-thirds of survey respondents prefer omnichannel strategies, citing broader reach, scalability, and consumer trust as key advantages. Only 8% of investors favored DTC, while 25% saw no difference. Hahnbeck highlights that a strong brand identity is still critical, whether in omnichannel or DTC models. For DTC brands, expanding into retail can create sustainable, long-term value by diversifying revenue streams and enhancing customer trust.
Do omnichannel strategies offer a clear edge over DTC models?
Each week we select most important sector news and statistic
so that you can be up to speed
