Strategic buyers and private equity return to horticulture as market stabilizes
The horticulture industry is experiencing a renewed wave of interest from private equity investors following a brief period of stagnation. After M&A transaction volumes stalled in 2023 and 2024 due to high energy prices and general economic uncertainty, the sector is showing clear signs of recovery.
New research from corporate finance and financial advisory firm Oaklins indicates that horticulture deal activity has stabilized and is now trending upward, reflecting a restoration of investor confidence in the industry’s long-term potential.
Overall deal activity in 2025 came in just below 2024 levels, broadly in line year-on-year. This reflects a stabilization of the industry’s deal activity. Indeed, the horticulture sector is seeing accelerated consolidation as industry pressures are pushing companies to seek stronger, more resilient platforms.
Drivers of consolidation
Several internal pressures are driving this trend toward consolidation. Many horticulture companies are facing the need to achieve greater economies of scale to improve efficiency and protect profit margins against rising labor and energy costs.
In addition to that, a significant number of family-owned businesses are reaching a point of generational succession. When the transition to a third generation becomes difficult or financially unfeasible, selling to a larger group or a financial partner often becomes the most practical path forward.
A key M&A trend in horticulture is the shift toward broader, integrated offerings – the one-stop-shop. While some players remain focused on a single crop, larger and more diversified companies build portfolios across multiple crops.
Margin pressure continues to intensify as large retailers and growers push for more competitive pricing, higher service requirements, and greater transparency throughout the supply chain. These demands leave many standalone players with limited flexibility to absorb rising input costs or to invest in the modernization needed to remain competitive.
The fragmented nature of the horticulture market provides ample opportunity for investors to build larger, more professional platforms through strategic acquisitions. The sector is increasingly viewed as a resilient growth industry, with global food demand and the adoption of high-tech greenhouse solutions serving as strong long-term drivers. The market is likely to grow at an annual rate of 7.6%, reaching an estimated value of $52 billion by 2030.
Private equity
While previous years saw a decline in private equity involvement, the share of transactions involving these financial sponsors rose to 32% in 2025. Private equity investors are now turning back to the horticulture sector after a period of recovery from the lows brought on by the Covid-19 pandemic.
This influx of professional investment is expected to lead to a more consolidated and internationally oriented sector by the end of the decade. By partnering with financial investors, companies can accelerate their geographic expansion and professionalize their internal processes, positioning themselves to capture future opportunities in an increasingly competitive global market.
Besides providing capital, private equity firms often help accelerate growth by contributing knowledge on building a more successful and professional company, facilitating the succession of the CEO, and accelerating geographic and market expansion.
“Private equity is playing an increasingly pivotal role in the professionalization of the horticulture sector,” said Frank de Hek, a managing partner at Oaklins.
“As the market grows in scale and strategic importance – particularly in addressing global food security – we’re seeing a wave of newcomers entering the space, from agri-focused to sector agnostic investors. Companies increasingly partner with private equity not only for capital, but also for strategic guidance, professionalization, access to networks and support in executing acquisitions.”
