Download the full 2026 Food Industry Trends Report here.

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Food Industry Trends

Heading into 2026, food companies face a market shaped by contrast rather than consistency. Growth opportunities exist across GLP-1 medications, wellness, value, and functional innovation, but they are distributed unevenly across consumer segments. Strategic success will depend on managing these parallel realities by scaling where demand is strong and simplifying where focus is needed to build a portfolio that can perform across shifting consumption patterns.  

Clarkston’s consumer products consultants have highlighted the top food industry trends that businesses should consider and keep top-of-mind throughout the year:

1. Consolidation and Strategic Breakups
2. GLP-1 Drugs Reshape Demand
3. Economic Pressures Drive Value
4. Wellness Grows with Uneven Access
5. Functional Ingredients Gain Traction

Trend 1:

Consolidation and Strategic Breakups

Mergers and acquisitions remain active across the food industry, but they are increasingly occurring alongside a countertrend of large multinationals breaking into smaller discrete companies. Large-scale deals continue to reshape how brands participate across categories. Mars’ acquisition of Kellanova for $35.9 billion expands the company beyond confectionery into broader snacking segments, enabling greater participation in adjacent categories. The deal also strengthens Mars’ ability to respond to demand for healthier, higher-value food options. 

Multinationals are also acquiring emerging brands to capture momentum in better-for-you segments. PepsiCo’s $1.2 billion acquisition of Siete Foods reflects this approach, as the brand’s grain-free tortillas and related products emphasize reduced salt, sugar, and saturated fat. Hershey also sought to broaden its portfolio through the acquisition of organic salty snack brand Lesser Evil. These moves allow larger companies to tap into fast-growing niches without extended internal development. 

At the same time, brands are focusing on complexity reduction as a strategic priority. Kraft Heinz plans to separate its sauces and spreads business from its grocery portfolio, forming two publicly traded companies to sharpen focus on distinct consumer needs. Keurig Dr. Pepper has announced plans to separate its coffee and beverage units following its $18 billion acquisition of JDE Peet’s. Unilever’s planned spin-off of The Magnum Ice Cream Company further illustrates how portfolios are being restructured to create more agile businesses with more streamlined category focus. 

For food companies, this trend underscores the importance of clarity in brand identity. Growth is coming from focused portfolios and close alignment with specific consumer expectations rather than broad strategies. 

Trend 2:

GLP-1 Drugs Reshape Demand

GLP-1 weight-loss medications are reshaping food consumption patterns, though their long-term impact remains uneven and closely tied to access. Adoption continues to rise, with 23% of U.S. households currently using GLP-1 drugs and projections that these households will represent 35% of all food and beverage units sold by 2030. 

The effects of this trend on spending are already becoming visible. Households with at least one GLP-1 user reduced grocery spending by approximately 6% within six months, with high-income households cutting spending by nearly 9%. Caloric intake also declines, with GLP-1 users consuming roughly 700 fewer calories per day and showing the largest reductions in processed and sugary foods. 

Recent insurance decisions complicate the accessibility of these medications. Blue Cross Blue Shield of Massachusetts, for instance, will no longer cover GLP-1 drugs for weight loss for employers with fewer than 100 employees, while larger employers may opt in at additional cost. Harvard Pilgrim Health Care also plans to end coverage for most commercial plans starting January 1, and Medicare does not cover GLP-1s for weight loss, with some state Medicaid programs rolling back coverage. 

The implications of these decisions create a planning challenge for food companies rather than a shift in a single direction. Brands must prepare for reduced consumption among some consumers while maintaining relevance for those without access. Smaller portions and nutrient-dense formulations will be increasingly important as companies navigate uncertain adoption patterns. 

Continue reading by downloading the full report below.

Download the Full 2026 Food Industry Trends Report Here

Contributions from Hannah Yang