In 2025, consumer products M&A declined 18.9% year over year, reflecting continued economic uncertainty and a more selective dealmaking environment. As we enter the last quarter of 2026, companies are becoming more deliberate about where they invest. Acquisitions are increasingly focused on strengthening category leadership or accelerating growth in areas aligned with changing consumer demand. 

2026 M&A Deal Trends in Consumer Products

As companies evaluate future growth strategies, M&A remains a critical lever for strengthening competitive advantage within consumer products. Below, we explore four trends shaping consumer products M&A activity in 2026: 

• Food & Beverage Leaders Made Large-Scale Deals 
• Consumer Loyalty Remains a Competitive Advantage  
• Portfolio Discipline Reshapes Investment Strategies 
• Functional Innovation Shapes Acquisition Strategies 

Trend 1: Food & Beverage Leaders Made Large-Scale Deals  

Large transactions completed in late 2025 and announced in 2026 show how food and beverage companies are using M&A to strengthen their portfolios. As companies continue navigating slower volume growth and pressure to improve profitability, deepening existing positions has become a more compelling investment strategy. 

[September 2025]: Ferrero Completes Acquisition of WK Kellogg Co. 

Ferrero expanded its packaged food portfolio through its approximately $3.1 billion acquisition of WK Kellogg Co. While Ferrero has traditionally been known for confectionery, the addition of established cereal brands, including Frosted Flakes and Froot Loops, expands its presence in the breakfast category. The acquisition allows Ferrero to diversify its portfolio and extend its reach across more consumption occasions.  

[December 2025]: Mars Completes Acquisition of Kellanova 

Mars used the same strategy by completing its acquisition of Kellanova in December 2025, creating a combined snacking business that the company expected to generate about $36 billion in annual revenue. The combination brings together two global snack portfolios, expanding Mars’s presence in salty snacks while adding exposure to frozen breakfast foods. The acquisition also strengthens the company’s international distribution network, supporting a broader position across key snack categories. 

[March 2026]: McCormick and Unilever Agree to Combine Their Food Businesses  

Similarly, McCormick’s proposed combination with Unilever’s food businesses values Unilever Foods at approximately $44.8 billion. The deal is expected to close by mid-2027, subject to shareholder and regulatory approvals. Other customary closing conditions also apply. The transaction reflects a willingness to pursue large acquisitions when the strategic fit supports revenue growth. 

These transactions illustrate different approaches to strengthening a consumer products portfolio. Companies can invest where they already possess competitive advantages or acquire businesses that extend those capabilities into complementary categories. 

Future growth will likely depend less on expanding into every adjacent category and more on strengthening positions where the business is best equipped to win. 

Trend 2: Consumer Loyalty Remains a Competitive Advantage 

Brand awareness has always influenced acquisition decisions, but buyers today are placing more value on the strength of a brand’s relationship with its consumers. Digital channels shape how people discover and evaluate products, so companies with highly engaged customer audiences are commanding attention from acquirers. Brands that consistently earn repeat purchases and build credible relationships with consumers can offer stronger long-term growth potential. 

[June 2026]: L’Oréal Agrees to Acquire Majority Stake in Innovist 

L’Oréal’s agreement to acquire a majority stake in Innovist reflects this trend. Innovist’s portfolio includes digital-first brands such as Bare Anatomy and Chemist at Play, which would expand L’Oréal’s portfolio of brands tailored to Indian consumers. The brands’ direct-to-consumer channels could also provide opportunities to deepen consumer understanding and personalize experiences. 

[June 2026]: Nestlé Acquires Remaining Stake in yfood 

Nestlé completed its acquisition of the remaining 51% ownership stake in yfood in early July 2026. The company had held a 49% stake since 2023. Full ownership expands its presence in convenient nutrition and creates opportunities to develop the brand in new markets. 

[July 2026]: Henkel Acquires Olaplex 

Henkel’s acquisition of Olaplex expands its premium hair care portfolio through a brand with an established professional presence. Olaplex complements Henkel’s existing offerings and brings relationships across salon and consumer channels. The acquisition strengthens Henkel’s position in the prestige hair care market. 

For consumer products leaders, these acquisitions highlight the potential value of established consumer relationships. Strong loyalty can give an acquired brand an advantage that may be difficult for competitors to replicate. Diligence should assess whether that loyalty translates into repeat purchasing and can be maintained under new ownership. 

Trend 3: Portfolio Discipline Reshapes Investment Strategies 

Consumer products companies continue to use M&A to build more focused portfolios. Many organizations are divesting slower growing businesses and redirecting capital toward brands and categories with better long-term potential. This approach can support profitable growth by clarifying where the company intends to compete and where it is willing to reduce exposure. 

[March 2026]: Fresh Del Monte Completes Acquisition of Select Del Monte Foods Assets 

Fresh Del Monte’s approximately $285 million acquisition of select Del Monte Foods assets shows how a restructuring can create acquisition opportunities. The transaction followed Del Monte Foods’ court-supervised sale process and reunited the Del Monte brand under a single owner for the first time in nearly four decades. 

For Fresh Del Monte, the acquisition expands its prepared and packaged foods platform while strengthening its portfolio with well-established brands. The transaction illustrates how assets sold through a bankruptcy process can support a buyer’s broader portfolio strategy. 

[May 2026]: IFF Agrees to Sell Food Ingredients Business to CVC Capital Partners 

IFF’s agreement to sell its food ingredients business to CVC Capital Partners reflects a more deliberate approach to portfolio management. The transaction values the business at approximately $4.3 billion and would allow IFF to focus resources on higher-priority areas while simplifying its business. IFF would retain a 10% equity interest. Closing is expected by the end of the second quarter of 2027, subject to regulatory approvals and other closing requirements.  

These transactions reflect a larger shift in how companies evaluate portfolio value. Leaders should ask whether each business reinforces competitive differentiation and supports long-term capital allocation priorities. Portfolio reviews now ensure that every asset has a clear strategic purpose rather than remaining in the portfolio simply because it already exists. 

Trend 4: Functional Innovation Shapes Acquisition Strategies 

Consumer demand for products that deliver measurable health benefits continues to influence M&A across the industry. Shoppers are prioritizing products that support areas such as protein intake, gut health, hydration, and overall wellness, so buyers are pursuing acquisitions that align with these interests  

[May 2026]: Bel Group Acquires Brainiac and Little Brainiac Brands 

Bel Group’s acquisition of Ingenuity Foods’ Brainiac and Little Brainiac brands reflects continued investment in functional snacking. Brainiac specializes in nutrient-enhanced snacks marketed to support brain health. For Bel, the acquisition expands its better-for-you portfolio and complements its GoGo squeeZ platform. 

[May 2026]: Heartland Food Products Agrees to Acquire Whole Earth Brands’ Americas Business 

Heartland Food Products’ agreement to acquire Whole Earth Brands’ Americas business demonstrates continued investment in sugar reduction. The transaction would bring Equal into the same portfolio as Splenda, strengthening Heartland’s position in sweeteners. It would also expand the company’s natural and plant-based offerings through the Whole Earth brand. 

[June 2026]: Ingredion Announces Acquisition of Tate & Lyle 

Ingredion’s proposed acquisition of Tate & Lyle through a cash offer valuing its equity at approximately £2.7 billion ($3.6 billion) highlights investment in ingredients that support functional food innovation. The transaction would expand Ingredion’s capabilities in specialty ingredients that improve nutrition and texture. Completion is expected in the second half of 2027, subject to the required approvals and other conditions. 

CPG companies are prioritizing products that deliver clear value and address lasting shifts in purchasing behavior. As interest in functionality continues expanding across food and beverages, businesses must align acquisitions with measurable consumer demand. Leaders should concentrate investment on ideas with the strongest commercial potential and assess whether consumer interest translates into sustained purchasing. 

Looking Ahead 

Consumer products M&A has seen strong momentum in 2026 compared to the past several years, but the transactions shaping the market point to more significant trends than increased deal activity. Companies are making deliberate decisions about where to invest, with many transactions focused on reinforcing category leadership or strengthening consumer relationships. Portfolio focus and capabilities tied to long-term demand are also shaping capital allocation. 

M&A is a strategic tool for building resilient, growth-oriented businesses rather than simply expanding scale. Whether evaluating acquisition opportunities, preparing a business for divestiture, or integrating newly acquired brands, it’s crucial for consumer products companies to first define clear strategic objectives.  

For help getting started, contact Clarkston’s experts today.