Health & wellness and premium food boost F&B dealmaking

17th July 2026

M&A activity in the UK’s food and beverage sector increased in the year to March 2026, bolstered by high levels of activity in categories including health & wellness products and premium foods.

According to new research from Pinsent Masons, there were a total of 78 deals in the UK food and drink sector in the financial year ending March 26, an increase of 18 per cent from 67 the previous year. Disclosed deal values, meanwhile, increased 25 per cent, from £4.4 billion in the year to March 2025 to £5.5 billion.

Overall, Pinsent Masons’ research indicates that deal volume in the sector has now increased by 52 per cent over the past two years.

Despite this uptick in activity, the report showed a drop in private equity involvement in the sector. In the year to March 2025, private equity was involved in 27 per cent of the year’s total (18 deals), a figure that dropped to 20 per cent (16 deals) in the year to March 2026.

According to Pinsent Masons, both strategic and private equity buyers are seeking to acquire brands linked to the fast-growing functional food and drinks market, with high-performing categories including high-protein products and gut health products.

The functional food segment is estimated to be growing at a rate of 8 per cent per annum, outstripping that of the wider packaged food market. Younger consumers are seen as being a major factor in this growth.

Research indicates that approximately two-thirds of Gen Z and Millennial customers purchased functional nutrition products in the most recent year. Products linked to energy, weight loss, gut health, immunity and muscle support are identified as being among the most sought after products in the functional food category.

“Clean label” products, items that are free of additives, preservatives or can be categorised as “natural” have also emerged as an area of longer-term growth.

Pinsent Masons Head of Retail and Consumer Tom Leman commented: “Recent transactions show that buyers are prioritising existing scale and resilience. Whether through significant deals that consolidate global platforms, or targeted acquisitions that extend into adjacent categories, activity is increasingly trending toward building portfolios that can absorb volatility and respond quickly as consumer preferences shift.”

One of the largest deals of the year, Carlsberg Group’s £4.1 billion acquisition of Britvic, was described as being indicative of two significant trends: major groups using M&A to broaden portfolios and respond to changing consumer habits; and the use of M&A to move into adjacent areas and reduce reliance on slower-growth categories.

Leman added: “Large groups are increasingly using M&A to blur traditional category lines, bringing food, beverage, snacking and wellness propositions together into portfolios that can flex in response to consumer demand. Acquiring established brands with loyal customer bases allows buyers to pivot faster as consumer preferences shift.”

Find out more about long-term trends driving food & beverage M&A

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