Big Food M&A summary
- Industry consolidation accelerates as companies respond to evolving consumer and market pressures
- Major corporations pursue large‑scale acquisitions to strengthen portfolios and global reach
- Emerging brands gain traction through differentiation, community building and data‑driven growth
- Private equity partnerships help start‑ups scale efficiently before strategic acquisitions
- Regional activity diversifies as Europe and Asia drive significant deal momentum
The dizzying speed at which the food and beverage industry is changing is driving an unprecedented wave of mergers, acquisitions, breakups and portfolio reshuffling.
Manufacturers are racing to stay not only competitive but relevant in a market shaped by shifting consumer expectations, regulatory pressures, and economic volatility.
Over the past year alone, we’ve watched as major players including Nestlé, Mars, Kraft Heinz, Ferrero and Unilever made transformative moves that shocked and inspired the industry, leaving many wondering who’ll be next to make a big move in Big Food.
Next big moves in Big Food
2026 is barely a month old and the rumours that the world’s biggest chocolate supplier is next in line for a shake-up continue to grow. Barry Callebaut is reportedly planning to spin-off its cocoa business in a deal that could reshape the confectionery industry.
Could they be next?
The companies most likely to pursue big structural changes – from mergers and acquisitions to divestitures and demergers, says Peter Mangan, managing director of financial advisory firm Portage Point Partners, are those operating in large, scalable categories with steady, repeat purchase behaviour.
This includes packaged and ambient foods, snacks and confectionery, dairy and dairy alternatives, frozen foods, soft drinks, alcoholic beverages, and coffee and tea — all areas where brands benefit from broad consumer reach, steady demand and the kind of scale that reduces risk and creates opportunities for buyers to streamline costs and lift profitability.
Winners and losers
The strongest valuation momentum, says Portage Point Partners’ Mangan is likely to come from energy, hydration and functional non‑alcoholic beverages, RTD alcohol, and better‑for‑you branded foods – all of which continue to benefit from rising consumer interest in health, performance and premiumisation.
In contrast, he predicts traditional confectionery, snacking and baked goods that lack the better‑for‑you edge may struggle, particularly as the growing adoption of GLP‑1 medications continues to reshape snacking habits and curb demand for less functional, calorie‑dense products.
CPG vs start-up
Big and small players are reshaping the M&A landscape in very different ways.
The giants still chase scaled brands that clear the $200m (€167m) bar, because only sizeable deals will truly move the needle and command attention inside major organisations. Smaller acquisitions, can often get swallowed up and lost.
Mars’ $35.9bn (€31bn) acquisition of snack brand Kellanova is a textbook example of one giant buying another, targeting a large, high‑scale platform capable of supporting global growth and integrating smoothly with its existing distribution and manufacturing operations.
Meanwhile Ferrero stayed big but stepped outside its sector to acquire cereal brand WK Kellogg for $3.1bn in order to bolster its US presence.
But while the big companies look for proven scale, the up‑and‑comers are proving increasingly attractive prospects.
Today’s emerging brands are growing faster by building tight, loyal communities long before they reach mass scale. They’re doing this by focusing on niche audiences, using social platforms and direct‑to‑consumer channels to build engagement, operating leaner with small teams and disciplined SKU counts, and iterating quickly using real‑time consumer data.
Many, says Portage Point Partners’ Mangan, also partner with private equity firms, to scale more sustainably, helping them strengthen their operations and grow profitability before considering a strategic sale – ultimately making them louder, more resilient and a very attractive prospect by the time they hit the radar of big CPG acquirers.
And if you’re looking for the perfect example of this, look no further than LesserEvil. The snack brand best known for its clean‑label popcorn, was supported by multiple private equity firms including Aria Growth Partners, it built a loyal community around simple ingredients and transparent values, and was subsequently acquired by Hershey in 2025 as part of the confectionery giant’s strategy to expand into better-for-you snacking.
Likewise, Poppi started as a small, social‑media‑driven prebiotic soda brand, leveraging TikTok virality and wellness‑focused micro‑communities, before PepsiCo snapped it up for a cool $1.5bn.
And Mangan’s top tip for start-ups looking to be bought-up by a big brand – “differentiation and a data-centric approach” are important characteristics in 2026. Differentiation, from both a product and brand perspective, is critical to success and standing out from the crowd. “The world of CPGs has become hyper competitive with lots of fast followers. The brands and products that are truly differentiated will gain mindshare from the consumer, and the scale and success will follow.”
Most active M&A region
“North America is likely to continue to be the primary market for food & beverage activity,” says Portage Point Partners’ Mangan.
However, North America’s lead is narrowing as other regions step up their deal activity
Major 2025 acquisitions demonstrate that global players are increasingly looking outside North America for scale, capability-building, and innovation, especially in snacking, bakery, beverages and better‑for‑you categories.
In fact, some of the largest food and beverage M&A deals in 2025 took place elsewhere.
Danish brewer Carlsberg’s acquisition of British soft drinks brand Britvic topped $4.2bn, while Danish dairy supplier Arla merged with Germany’s DMK, creating Europe’s strongest dairy cooperative, with revenues exceeding $22bn.
Asia is also on the rise, with major deals and rapid innovation reshaping the region’s role in the global landscape. Recent activity shows strong momentum across beverages, processed foods and food-tech.
The future of M&A in Big Food
Looking ahead, the pace of activity suggests the next wave of transactions will cluster in the same high‑velocity categories already drawing attention, including better‑for‑you brands and premium beverages.
These areas offer the repeat‑purchase behaviour, scalable margins and cross‑category expansion opportunities that acquirers increasingly prioritise.
We expect to see more global brewers and beverage giants circling functional drinks, more confectionery players moving into better-for-you snacking, and more dairy cooperatives pursuing scale through cross‑border mergers.
Europe and Asia are also poised for a heavier deal footprint. Europe’s recent megadeals have created new power blocs in dairy and beverages, signalling that regional champions are ready to grow beyond their traditional borders.
Asia’s surge in food‑tech, processed foods and beverage innovation is likely to draw both strategic buyers and private equity funds seeking early access to high‑growth markets. As capability‑building becomes as important as scale, cross‑regional transactions will become increasingly attractive.
For the industry, this next chapter signals heightened competition – not only to win consumers, but to secure the technologies, supply chains and product platforms that will define the next decade.
Companies that cannot evolve fast enough may find themselves targets. Those that move decisively, whether through acquisition or reinvention, stand to reshape entire categories.
