The consumer products (CP) industry faced a dynamic and evolving marketplace, shaped by economic pressures, shifting consumer preferences, and strategic realignments among major players in 2024. Global CP M&A volume reached $3.4 trillion, 15% greater than the volume in 2023, but still only half the amount of deals seen in 2021. Looking ahead, the remainder of 2025 brings renewed optimism, fueled by regulatory easing, strong cash reserves, and a favorable tax environment. As companies seek to refine their portfolios, M&A activity is expected to accelerate. To stay ahead of this momentum, businesses must execute strategic transactions with speed and precision. Below, we dive into four 2025 M&A deal trends in consumer products, with examples for each.

2025 M&A Deal Trends in Consumer Products

The following trends highlight key themes shaping M&A activity in the consumer products industry for 2025:  

• Portfolio Reshaping and Optimization  
• Market Reach and Expansion 
• Increasing Emphasis on Health and Wellness  
• Growing Private Equity Interest and Involvement  

Trend 1: Portfolio Reshaping & Optimization  

In 2025, companies are reshaping their portfolios to focus on core competencies to tap into fast-growing markets and streamline operations to reduce costs. With consumer preferences evolving rapidly, businesses must identify high-value opportunities and navigate complex market dynamics to meet consumer demand. 

[March 2024]: Unilever Spins Off Its Ice Cream Business  

Unilever’s decision to spin off its ice cream business, including iconic brands like Ben & Jerry’s, underscores the trend of brands prioritizing core focus and operational efficiency. As part of its “Growth Action Plan,” Unilever is now structured into four business groups – Beauty & Wellbeing, Personal Care, Home Care, and Nutrition – leveraging complementary go-to-market strategies, as well as shared R&D, manufacturing, and distribution systems across both developed and emerging markets. This reorganization responds to investor calls for greater operational efficiency while positioning the company for accelerated growth. By focusing on brand excellence and increasing brand investments, Unilever aims to enhance productivity, simplify operations by rebuilding gross margins, and maximize the advantages of a category-focused structure. Additionally, the shift is designed to strengthen the company’s performance-driven culture. 

[August 2024]: Mars Acquires Kellanova for $39.5 Billion  

Mars’ acquisition of Kellanova, the snacking powerhouse spun off from Kellogg in 2023, was the largest consumer products M&A transaction of 2024. This merger highlights the ongoing trend of portfolio reshaping and optimization, allowing Mars to strengthen its presence in major categories like salty snacks and crackers across grocery chains and gas stations, with each market surpassing $100 billion globally. Kellanova’s international reach, generating over 55% of its sales from developed markets and 25% from emerging markets, offers Mars a significant growth opportunity, particularly as Mars has a stronger foothold in China while Kellanova is more established in Africa. Additionally, the acquisition helps Mars diversify beyond its chocolate-heavy portfolio, addressing supply-side challenges and expanding its offering of healthier, on-the-go snack options. This deal enhances Mars’ ability to meet evolving consumer preferences and compete with other major CPG companies. 

[December 2024]: Constellation Brands Divests Svedka to Sazarec 

Constellation Brands divested Svedka as part of its strategic transition toward premium wine and spirits. The company has been reshaping its portfolio to prioritize higher-end offerings, shifting away from mainstream brands like Svedka. Amid challenges in its wine and spirits segment, including a $2.5 billion write down, Constellation is refocusing on more profitable premium categories. With consumer demand increasingly leaning toward premium and craft spirits, this move aligns with evolving market trends. 

[January 2025]: J.M. Smucker’s Divests Their Value Brands to JTM Foods 

Earlier this year, Smucker divested the Cloverhill and Big Texas Brands, along with select private-label products, to concentrate on expanding Hostess Brands, which it acquired in 2023. This decision supports Smucker’s broader strategy to refine its portfolio, emphasize higher-growth and higher-margin categories, and enhance resource allocation. By selling these non-core sweet baked goods brands, Smucker can direct more investment and focus toward integrating and strengthening Hostess, a brand with a stronger market presence and consumer loyalty. 

Trend 2 – Market Reach & Expansion 

Companies are expanding their footprint through acquisitions internationally, especially in regions with growing customer bases. Expansion can help both U.S. and international businesses navigate uncertainties such as tariffs and geopolitical concerns. With a strong dollar and easing financial restrictions, now is a prime time for businesses to expand into international markets or strengthen their presence in U.S. markets.  

[March 2024]: BHJ Acquired a Majority Stake in Australia’s Staughton Group  

BHJ acquired a majority stake in Australia’s Staughton Group, including its pet division, Cool Off, for approximately $100 million. This acquisition enables BHJ to expand into the growing Australian market in addition to Cool Offs patented automated plate freezing system, which streamlines the freezing and handling of raw materials. Australia’s proximity to Asia, strong trade agreements, and growing pet ownership provides a gateway to Asia-Pacific markets, where pet food demand is surging. Cool Off also exports to 11 countries, which will help expand BHJ’s distribution network. In addition to an enhanced and diversified portfolio, BHJ strengthened its supply chain with localized manufacturing and distribution networks in Australia. This ensures BHJ can meet growing demand in international markets while reducing shipping costs for Asia-Pacific markets through localized production.   

[September 2024]: Mondelez International to Acquire Evirth 

Mondelez recently announced their intent to acquire Evirth, a leading Chinese company in frozen-to-chilled cakes and pastries. The Chinese bakery products market is expected to grow at an annual rate of 8% through 2030. This acquisition allows Mondelez to tap into Evirth’s advanced research and development capabilities and technical expertise, enabling innovation to cater to the evolving preferences of Chinese consumers, particularly younger demographics. Additionally, Mondelez’s existing collaboration with Evirth, which includes joint products featuring iconic brands like Oreo and Philadelphia, laid a strong foundation for further investment and growth.  

Trend 3 – Increasing Emphasis on Health and Wellness 

As consumers increasingly prioritize health and wellness, companies are leveraging M&A to adapt to this secular trend. To meet changing consumer demand, brands must offer health-conscious products. Through strategic acquisitions, firms are diversifying their product offerings to include heath conscious options such as plant-based foods and functional beverages.  

[June 2024]: Simply Good Foods Acquired Only What You Need (OWYN) for $280 Million  

Simply Good Foods’ acquisition of OWYN addresses the rising consumer demand for health-conscious products. OWYN, one of the fastest-growing ready-to-drink (RTD) protein shake brands, enables Simply Good Foods to tap into the trend of plant-based diets while targeting the complementary market of RTD protein shakes. The acquisition bolsters Simply Good Foods’ presence in the RTD protein shake category, complementing its existing brands like Quest and Atkins, and enhancing relationships with retail partners. With OWYN’s established relationships with blue-chip retailers provide Simply Good Foods with valuable distribution opportunities such as optimizing network chains and systems.  

[June 2024]: CP Kelco ASP Acquired by Tate & Lyle for $1.8 Billion  

Tate & Lyle’s acquisition of CP Kelco highlights its strategic goal of enhancing its ingredients division by entering the growing market for plant-based proteins. The combination of Tate & Lyle’s strengths in sweetening and CP Kelco’s expertise in plant-based proteins offers diverse applications across multiple product segments. This acquisition bolsters Tate & Lyle’s market leadership and positions the company to meet increasing consumer demand for innovative, health-focused ingredients.  

Trend 4 – Growing Private Equity Interest and Involvement  

After two years of declining activity due to higher costs of capital for leveraged buyouts, limited returns, and economic uncertainty, private equity investments in consumer businesses are poised for a resurgence. As macroeconomic conditions stabilize and Wall Street anticipates increased M&A activity, private equity firms are preparing to deploy capital strategically. Founders, previously hesitant to sell in challenging conditions, may now find favorable opportunities to partner with private equity to drive growth and transformation.   

[June 2024]: L Catterton Acquired Stripes Beauty, a Wellness Brand Founded by Naomi Watts  

L Catterton’s acquisition of Stripes Beauty highlights its strategic approach to investing in the beauty and wellness sector. Stripes, founded by actress Naomi Watts, offers a range of products catering to the beauty and wellness market. Leveraging its extensive resources, L Catterton aims to expand Stripes’ brand presence internationally and introduce specialized health solutions to meet diverse consumer needs by expanding its presence on platforms like Amazon and introducing the brand to new markets (including Canada). To support this expansion, Stripes appointed former L’Oréal executive Cara Kamenec as president and former Revlon CEO Debra Perlman as executive chair. These leadership changes underscore the company’s commitment to drive innovation and strategic growth. 

[October 2024]: Vista Outdoor Divested Its Sporting Goods Division to Revelyst Strategic Value Partners for $1.125 Billion  

Vista Outdoor’s decision to divest its sporting goods division aligns with its strategy to streamline its portfolio and focus on core competencies. The transaction with Revelyst Strategic Value Partners, a private equity firm, reflects a growing trend of PE firms leveraging their market presence to accelerate growth in high-potential sectors. With outdoor gear surging in popularity, Revelyst’s strong market presence is expected to enhance the division’s long-term growth and profitability. This deal exemplifies how private equity is stepping in to drive value creation through increasing operational efficiency and brand positioning in a competitive and evolving consumer landscape.  

Looking Ahead

Companies are actively reshaping their portfolios to focus on core strengths and emerging markets, expanding globally to enhance their market presence and placing a greater emphasis on living and feeling better. Private equity firms are also targeting high-potential brands and categories to increase profit margin. With regulatory easing, strong cash reserves, and expected easing of interest rates, CP companies must act swiftly to capitalize on this M&A momentum. Strategic benchmarking and assessing leading to executed deals will be crucial in driving growth, improving operational efficiency, and aligning with evolving consumer preferences in an increasingly competitive landscape.  

From identifying high-value acquisition targets and conducting due diligence to optimizing post-merger integration, Clarkston’s M&A team ensures that companies capitalize on emerging opportunities while mitigating risks.