In 2026, protein and fiber are set to drive mergers and acquisitions (M&A) in the global food industry. There’s a rising consumer interest in healthier food choices, fueled in part by the Covid-19 pandemic. New weight-loss medications, especially in North America and Europe, are also shaping the market.
These medications often emphasize protein and fiber, which help people feel fuller and maintain muscle mass. The introduction of pill versions of these drugs could create even more M&A opportunities. But it’s not all about health; indulgent products like snacks and ice cream remain strong contenders for acquisitions.
Experts predict that deal-making will be influenced by a mix of factors, including economic conditions and interest rates. Many companies are looking to streamline their portfolios, which might present buying opportunities. Lower interest rates could further encourage M&A activity.
Leading M&A experts shared their thoughts on the market’s future.
Jeff Hechtman – Kilpatrick Townsend: Hechtman notes that uncertainty in the market, especially regarding taxes and tariffs, has made companies hesitant. However, with some issues stabilizing, there’s renewed interest in larger deals. He mentions a divide where the high-end market remains active, but middle-market acquisitions are slowing down. High valuations still attract serious buyers, but sellers may need to adjust their expectations.
Steve Young – Manna Tree Partners: Young has observed a surge in M&A activities among consumer brands, especially in health-focused companies. Established firms are eager to reignite sales and are looking towards smaller, innovative brands. The move from carb-centric to protein-centric diets is becoming more prevalent, driven by health trends.
Shaun Browne – Houlihan Lokey: Browne points out that acquisitions are key for growth in the UK, where food consumption hasn’t increased significantly. He expects protein-focused products to continue dominating the market, while private equity firms are beginning to reevaluate their holdings.
Jeroen van den Heuvel – Oppenheimer: Van den Heuvel discusses the challenges posed by inflation and tariffs, contributing to a cautious M&A environment. However, banks are more willing to finance deals now, which could boost activity. Healthy convenience foods, such as gluten-free and functional products, are also on the rise.
As the market continues to evolve, the demand for healthier options and the trend towards sustainability will remain important. The push for protein and fiber aligns with a growing consumer focus on wellness. Additionally, food tech innovations like apps that analyze grocery items for healthiness are gaining traction, indicating that health-conscious shopping habits are here to stay.
For more insights into the evolving food industry, you can check out reports from reputable sources like [Just Food](https://just-food.nridigital.com/just_food_dec25/issue_61).
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Associated British Foods,PepsiCo,Unternehmensgruppe Theo Müller
