Private Equity Survey: Consumer Product Brand Investment Sentiment 2024-25
GW Hahnbeck surveyed a dozen private equity firms investing in the consumer products sector regarding their investment sentiment for 2024-25. With firms ranging in size from below $250m to above $200Bn in AUM and including some of the best-known names in consumer private equity, this small but diverse sample provides an interesting insight into how private equity investors currently view the CPG space
Many of the themes evident in the survey responses are in line with GW Hahnbeck’s impression of the consumer private equity sector as a whole, based on our discussions with more than 50 private equity firms over the course of 2024.
The split in opinion from the survey respondents regarding their investment appetite in the next 12 months echoes what we hear from consumer private equity generally: for the majority, the next 12 months will see more investment than the prior 12 months. In the survey, two thirds of participants responded this way. The third who took the opposite view seem to echo the sentiments of the minority of investors we have spoken to, who are either still actively investing but complain that there are fewer deals coming to market that meet their investment criteria, or have deprioritised the consumer products sector relative to other sectors.
1. Do you expect to deploy more or less capital in the next 12 months vs. the past 12 months?
The increasing importance of profitability is a topic we have been discussing for some time and is consistently mentioned by investors. The survey results appear to reinforce this notion, with almost all participants stating that they will deploy more capital into brands with strong margins (compared to those with lower or negative margins), over the coming 12 months. The definition of “strong” varies by product category, but from our discussions with investors it is clear that having margins well above the benchmark for a particular category adds value. Coming into 2025, for many investors strong margins are now a requirement rather than a positive.
2. How important is profitability? Which target profile do you expect to deploy the most capital into over the next 12 months:
The value of a strong retail channel for DTC-first businesses is another topic we have discussed at length in 2024. Survey participants seem to agree, with only 8.3% of respondents stating that pure-play DTC businesses are more valuable than omnichannel ones, all other things being equal. Fully two-thirds stated that omnichannel businesses are more valuable, with a quarter finding no significant difference.
3. Do you view DTC brands as being substantially better, substantially worse or similar to omnichannel brands assuming a similar levels of revenue and EBITDA?
In our experience, investors overwhelmingly attribute more value to omnichannel businesses due to their broader market reach and ability to build consumer trust across platforms. However, brand strength remains the cornerstone of success in either model. A well executed, authentic brand can drive premium pricing, deepen customer loyalty, and open doors to trusted retail partnerships. For DTC first businesses looking to scale, a thoughtful omnichannel strategy anchored by a strong brand identity often delivers outsized long-term value.
While smaller investors may lean toward operational simplicity, especially in favor of pure play DTC, the enduring importance of a differentiated and trusted brand cannot be overstated.
The results mentioned here are part of a larger survey of consumer private equity firms and their investment sentiment for 2024-25. If you would like the full survey results, enter your details below:
Hahnbeck is one of the leading M&A boutiques in the consumer products sector globally. As part of GW Hahnbeck, the firm has unmatched M&A capabilities in the lower middle market e-commerce & retail space, with extensive networks on both sides of the Atlantic. If you would like to discuss this survey, your business or your exit plans, reach out to info@hahnbeck.com.