The food and beverage industry is undergoing significant changes, driven by large companies seeking to accelerate growth through mergers and acquisitions (M&A). In 2025, major players like Kraft Heinz, Ferrero, and Nestlé made significant moves, including divestments and acquisitions. The trend is expected to continue in 2026, with companies like Coca-Cola and Barry Callebaut rumored to be making big moves.
According to Nandini Roy Choudhury, principal consultant for food and beverage at Future Market Insights, big companies are treating M&A as a two-step maneuver. First, they buy growth by acquiring fast-scaling functional food and beverage brands. Second, they clean up their portfolios to fund those acquisitions, simplify operations, and reassure investors.
The most desirable categories for M&A are functional foods and beverages, snacking, convenience foods, and active nutrition. Functional foods and beverages are attractive due to their proven consumer demand, lack of global distribution muscle, and potential for repositioning towards wellness. Snacking is a resilient growth engine, with frequency, cross-generational appeal, and strong brand loyalty making it an attractive target.
Convenience foods and food-to-go are also drawing interest, with operational efficiency and scale critical in these categories. Active nutrition and wellness adjacencies remain attractive but selective, with buyers gravitating towards brands with functional positioning, scientific credibility, and premium pricing power.
The future of Big Food is expected to be shaped by bold reinvention, with companies streamlining their portfolios, doubling down on high-growth areas, and building a portfolio that can withstand shifting consumer behavior and economic pressure. Expect more divestments, surprise megadeals, and re-evaluation of categories once considered “steady and safe.” The lines between food, beverage, wellness, and lifestyle are expected to blur further as brands chase relevance across every consumption moment.
Key trends driving M&A in the food and beverage industry include:
1. Functional foods and beverages: Attractive due to proven consumer demand and potential for repositioning towards wellness.
2. Snacking: Resilient growth engine with frequency, cross-generational appeal, and strong brand loyalty.
3. Convenience foods: Operational efficiency and scale critical in these categories.
4. Active nutrition: Attractive but selective, with buyers gravitating towards brands with functional positioning, scientific credibility, and premium pricing power.
5. Portfolio architecture: Companies are deciding which categories deserve capital and which no longer fit the long-term story.
Overall, the food and beverage industry is undergoing significant changes, driven by large companies seeking to accelerate growth through M&A. The trend is expected to continue in 2026, with companies streamlining their portfolios, doubling down on high-growth areas, and building a portfolio that can withstand shifting consumer behavior and economic pressure.