Food & Beverage M&A Pulse – Q2 2026

FOOD & BEVERAGE M&A MARKET DYNAMICS

• Global transaction activity declined in Q2‑26, with deal volume falling 22.7% year‑over‑year to 197 transactions. Similarly, U.S. transaction volume is down 24.4% versus Q2‑25 at 65 transactions, marking a reversal from the relative resilience seen earlier in the year and suggesting the pullback in dealmaking has broadened from a global phenomenon into the U.S. market.
• Strategic buyers remain the most active with transaction activity, accounting for 89.3% of global and 86.2% of U.S. deals. Strengthened balance sheets provide strategics with flexibility to pursue acquisitions that drive cost and revenue synergies, expand market share, insulate supply chains, and increase exposure to higher‑growth categories.
• With first-half volumes tracking below 2025 levels, a more durable recovery should take hold in the second half of the year as pressure builds on sponsors to exit aged holdings and narrowing valuation gaps between buyers and sellers release a backlog of deferred processes.

What We’re Discussing With Clients

Food Safety Under the Microscope

Food safety moved into the spotlight during the quarter as the Cyclospora outbreak, which emerged in June and resulted in 1,146 illnesses during the month, heightened scrutiny of foodborne contamination across the supply chain. The outbreak drew increased attention to testing, traceability, and product sourcing, reinforcing the need for greater supply chain visibility and robust food safety controls. In response, manufacturers, distributors, and retailers face increasing pressure to demonstrate transparency, and strengthen quality assurance processes.

Ultra-Processed Foods Under Pressure

Consumer, regulatory, and scientific attention on ultra-processed foods accelerated during the quarter as new research linked higher consumption to cognitive decline, reduced attention span, and broader health risks. Policymakers and industry groups also advanced efforts to establish formal definitions and regulatory frameworks for ultra-processed foods, reflecting growing demand for transparency and healthier alternatives. Despite continuing to account for more than half of U.S. caloric intake, ultra-processed food consumption has begun to decline modestly.

A Regulated Path for Peptides

The FDA’s April decision to remove 12 peptides from its Category 2 list marks a notable regulatory shift. The change reverses restrictions that had largely limited compounding since 2023 and reflects broader efforts to move peptide products into more regulated pathways. As consumer interest in longevity, wellness, and functional health continues to grow, brands and ingredient suppliers focused on bioactive compounds and advanced nutrition solutions are positioned to benefit from increased market accessibility within the more than $2.1 trillion American wellness economy.