Fresh Flavors, Functional Foods, and GLP-1: Key Food & Beverage M&A Trends in 2026
Market trends in Food & Beverage are leaning toward innovative products, international flavors, and functional, healthy foods, with GLP-1 naturally influencing consumer purchases.
In a ‘Food For Thought’ podcast interview, PMCF Investment Banking Vice President Jake Steslicki told Senior Editor Andy Hanacek that GLP-1 medications’ popularity has shifted consumer demand and created several bright spots.
“Specifically to our industry, the explosion of GLP-1s … really was a huge development in the industry and I think that will continue to reverberate for the next few years,” Steslicki said.
This new Food & Beverage M&A landscape highlights broadly innovative companies as bright spots.
“(Companies providing) fresh takes on tried-and-true categories,” he said. “Whether that fresh take comes from the dietary component of it, whether it’s being better for you, or being particularly well-suited for a GLP-1 person. I think you’re going to continue to see that.”
At F&B industry events, Steslicki noted sustained interest in alternative beverages and unique spins on staples like potato chips and cookie dough. Additionally, key market drivers for Food & Beverage investment banking include:
- Functional foods, specifically focused on protein or fiber
- Ethnic or international flavors
- Traditional foods that are better for you
“People are asking more out of their food than ever before,” Steslicki said. “Brands that can do that well without compromising on taste and quality are resonating with people.”
2025 Trends
Looking at 2025 M&A activity, Steslicki said the year was a ‘mixed bag’ much like many other industries. Highlighting PMCF Investment Banking’s Q4 2025 M&A Pulse, Steslicki said there was a 2025 shortfall in transactions compared to 2024.
However, he said private equity is driving continued interest in companies that excel at a few things.
“A lot of entrepreneurs will ask us in the middle market, as they grow, should we focus on being the best in one category or being in a large array of categories,” he said. “For the sponsored-backed acquisition, that specialization is often what drives them. … They want the brand that has three to five skews that really resonate with consumers, have great underlying velocity and other metrics.”
Listen to the full Food For Thought podcast
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