Global M&A trends in consumer markets: 2026 outlook

Stable, selective, and set for strategic rebalancing

Consumer M&A moves into 2026 with a steadier footing than many expected, despite mixed macroeconomic signals and growth expectations. Growth across many consumer categories remains under pressure, reflected in the OECD consumer confidence index staying below the neutral 100 threshold throughout 2025, reflecting a more cautious outlook and a tendency to save rather than spend. Against this backdrop, companies that have focused on operational discipline, reshaping cost bases, tightening portfolios, and putting the consumer at the heart of everything they do are now emerging in a stronger position, with improving confidence translating into greater readiness to pursue strategic M&A in the year ahead.

In 2025, M&A in global consumer markets saw deal values rise by 41%, even as deal volumes remained broadly flat. This pattern mirrored the wider M&A market, where activity was increasingly driven by fewer, larger, high-conviction transactions, led by strategic buyers and private equity firms deploying greater amounts of capital. Many of these large deals were concentrated in the US, while Europe and Asia maintained a steady cadence of smaller brand- and channel-focused transactions, reinforcing a market defined by selectivity rather than scale. In 2026, we expect a gradual uplift in activity and an improvement in valuations as buyers regain confidence and appetite for transformative moves.

This improving outlook rests on stronger consumer confidence emanating from a more stable macroeconomic backdrop: real GDP expectations are strengthening, interest rates are easing, and regulatory friction—particularly in the US—has moderated. Public consumer companies remain broadly undervalued, creating a robust pipeline for take-privates, carveouts and other strategic resets. In an environment where AI is rapidly reshaping competitive economics, M&A becomes a powerful tool for rebalancing portfolios and staying ahead of shifting consumer behaviour.

‘AI is rewriting the rules of consumer competition. Companies that refine their portfolios and use M&A to secure capabilities they can’t build fast enough will be far more nimble, able to pivot quickly and outpace both today’s competitors and tomorrow’s unexpected challengers.’

Hervé Roesch,Global Consumer Markets Deals Leader, PwC UK

Key themes driving consumer markets M&A in 2026

Sharpening portfolios for scale and focus

Consumer and retail companies are sharpening their portfolios through a two-pronged approach, exiting brands and businesses that lack scale or no longer fit core strategic priorities, while doubling down on strong brands and platforms where they see clear competitive advantage. CEOs are prioritising global brands and scalable platforms that can operate efficiently across markets, reinforcing a shift towards leaner operating models. Pockets of distress, particularly in the UK, are creating additional deal flow. As a result, corporate spin-offs and divestitures are likely to accelerate in 2026, with a mix of private equity and strategic buyers stepping in.

Unilever’s spin-off of its Ice Cream division and targeted disposals, particularly of local food brands in Europe, including The Vegetarian Butcher and healthy snacking brand Graze, illustrate the mix of bold and incremental steps shaping this reset. Procter & Gamble, Reckitt, Coty, and others are taking similar actions, divesting smaller local brands, niche or entire categories and legacy formats that no longer fit their strategic priorities.

While many of these divestitures are smaller and less headline-grabbing than megadeals, they are collectively meaningful. By steadily pruning lower return or non-core assets, companies are improving capital discipline, simplifying operations and positioning themselves for higher-growth, higher-margin opportunities. Portfolio simplification is likely to remain a central strategic theme well into 2026 and beyond.

Private equity targets consumer brands through take-privates

Private equity executed several notable take-private transactions in 2025. Deals included DBay Advisors’ acquisition of consumer health company Alliance Pharma, Sycamore Partners’ take-private of US pharmacy and retail group Walgreens Boots Alliance, MCR Hotels’ agreement to acquire global hospitality and private members club operator Soho House & Co, 3G’s acquisition of the global footwear brand Skechers, and an investor group led by TriArtisan Capital Advisors announcing a take-private of US family-dining restaurant group Denny’s.

These deals reflect ample private equity dry powder, lower financing costs and renewed interest in undervalued consumer companies with strong brands. In 2026, we expect continued activity as buyers target public consumer businesses under pressure from changing consumer habits and structural retail disruption.

A renewed push for consolidation in core markets

Companies across consumer markets accelerated scale-driven M&A in 2025 to improve resilience and unlock efficiencies amid ongoing cost pressures and increasingly value-conscious consumers. We expect this theme to continue in 2026 as companies seek competitive advantage and operating leverage in demand-sensitive categories.

Consolidation is occurring in sectors such as grocery, beauty and personal care, pet and vet services, and transport and logistics—where fragmentation and rising operating costs strengthen the case for scale. Mars’ acquisition of Kellanova, for example, completed in December 2025, broadens its brand portfolio and extends its reach across global markets.

The proposed Union Pacific–Norfolk Southern rail merger, one of the largest deals of 2025, illustrates the transformative potential of consolidation, with implications for consumer goods distribution, retail replenishment, e-commerce fulfilment, and supply-chain reliability. Supply chain resilience remains a priority across consumer companies, partly accelerated by tariffs but also the overall more volatile environment.

Capability-led acquisitions blur sector boundaries

Capability-driven M&A is expected to increase as retailers, platforms, and brand owners strengthen their technology, logistics, and data foundations. AI-enabled customer engagement, rising fulfilment expectations, and the economics of e-commerce are prompting companies to acquire rather than build these capabilities, especially where speed to market matters.

Industry convergence is accelerating as companies expand into adjacent areas such as logistics, healthcare, media, and electronics to broaden operational and commercial capabilities. These moves are improving fulfilment reliability, deepening customer insight, and enabling more efficient digital commerce.

Recent examples include JD.com’s acquisition of Ceconomy, giving the Chinese e-commerce platform a foothold in European consumer electronics retail, IKEA’s acquisition of AI-powered logistics software company Locus, and UPS’s acquisition of Andlauer to grow its healthcare logistics and cold-chain capabilities. In the home improvement space, Home Depot’s acquisition of specialty building products distributor GMS and the acquisition of Foundation Building Materials by Lowe’s reflect a common strategic push to deepen exposure to the professional contractor segment. Together, these transactions highlight how companies are expected to use M&A in 2026 to secure critical capabilities and customer access that support long-term growth and resilience.

Founders reclaim control of their brands

A notable trend in 2025 has been the rise in “founder buybacks” across the consumer sector, as entrepreneurs reacquire brands they previously sold to corporates or financial sponsors. Examples include Huda Kattan regaining full ownership of Huda Beauty, Adam Miller buying back Revel Bikes, Stella McCartney purchasing back LVMH’s minority stake in her fashion house, and the reacquisition of Australian beauty retailer RY by its founders.

We expect more deals of this nature in 2026 as corporates and sponsors continue optimising portfolios rather than nurturing mid-tier growth plays. Founder-buyback deals offer a strategic reset, one that aligns closely with customer preferences, as consumers increasingly value authenticity and the original brand ethos that founders are uniquely positioned to champion.

Spotlight on Consumer markets M&A in Japan

A dynamic M&A market opens up

Japan is emerging as one of the most dynamic M&A markets globally, driven by governance reform, demographic change, and a wave of portfolio restructuring across large corporates and diversified conglomerates. Retail and consumer goods sectors are benefitting not only from these broader structural shifts but also from changes in consumer behaviour. This is prompting strategic acquisitions as consumer brands and retailers pursue stronger private-label and digital capabilities alongside national and international expansion.

Deal values in Japan’s consumer sector increased 24% from $18.5bn in 2024 to $23.0bn in 2025, with 11 deals over $500m in value, compared to seven the prior year. Cross-border interest is rising, with the weak yen enhancing valuation appeal for foreign buyers from the US, Europe, and Asia who are increasingly seeking minority stakes or joint ventures with Japanese companies, particularly retail and food and beverage operators.

Private equity steps up in Japan

Private equity has also been very active, particularly in grocery and specialty retail. Notable examples include KKR’s sale of Seiyu, a nationwide supermarket chain, in July 2025 and Bain Capital’s acquisition of York Holdings’ supermarket and speciality store divisions from Seven & i in September 2025. These reflect investor interest in assets positioned to benefit from structural demographic shifts, including Japan’s ageing population and evolving patterns of domestic consumption.

Large Japanese conglomerates are accelerating moves into value-added consumer food categories as they look to expand globally and capture higher-growth segments. Mitsubishi, for example, has strengthened its global position through Cermaq Group’s acquisition of salmon farming assets in Norway and Canada from Grieg Seafood. Other Japanese food corporations have pursued cross-border acquisitions to scale their ingredients, seasonings and ready-to-eat portfolios, including Marubeni’s purchase of Bubbies, a US mochi ice cream brand.

Inbound tourism fuels experience-led hospitality M&A

Beyond retail and consumer, Japan’s hospitality and leisure sectors are also expected to gain momentum in 2026, driven by the recovery of inbound tourism, a strategic shift towards high-value-adding “experience-based” tourism, and “exporting” Japan’s renowned hospitality standards (Omotenashi) overseas. Recent activity includes Seibu’s acquisition of Oku Japan, a Kyoto-based operator specialising in adventure tourism for international travellers, reflecting a strategic shift from accommodation-led offerings towards curated, experience-driven travel. Seibu Prince Hotels’ acquisition of boutique hotel group Ace Hotel reflects the growing emphasis on lifestyle hospitality.

International expansion reshapes restaurant M&A strategies

The restaurant segment faces long-term pressure from declining domestic consumption driven by Japan’s population decline, despite favourable franchise economics. Recent transactions such as Colowide's purchase of Seagrass Holdco, the operator of Australia-based premium steakhouse brand “The Meat & Wine Co”, illustrate Japanese companies’ efforts to expand their businesses overseas. Looking ahead, outbound M&A is likely to remain a key strategic lever for Japanese restaurant operators seeking to diversify revenue streams, access faster-growing consumer markets, and build scalable platforms beyond a structurally constrained domestic market.

Key sectors to watch in consumer markets M&A in 2026

Below we outline the key trends we expect to drive M&A activity across the consumer markets sectors during 2026.

Consumer health remains an attractive arena for strategic and private equity investors, supported by favourable demographic trends, ageing populations, strained healthcare systems, and consumers’ heightened focus on wellness and improved outcomes. We expect this segment to remain among the most active areas of the consumer industry in 2026.

Kimberly‑Clark’s $48.7bn acquisition of Kenvue, announced in November 2025, aims to combine the complementary brands of both companies to create a global health and wellness leader. Other acquirors are focusing on supply chain resilience, innovation, and targeted growth rather than broad consolidation. For example, Prestige Consumer Healthcare acquired ophthalmic manufacturer Pillar5 Pharma to secure near-term supply and build long-term capacity in anticipation of future demand.

Private equity activity continues to demonstrate conviction in this segment. CapVest’s investment in STADA Arzneimittel and the take-private deals involving Walgreens Boots Alliance and Alliance Pharma reflect confidence in the sector’s stable demand, category growth and margin potential.

Beauty continues to be one of the most resilient consumer categories, supported by recurring demand, fast innovation cycles, and deep brand loyalty. However, growth is moderating and competition is intensifying, putting pressure on weaker or subscale brands. As a result, M&A activity is expected to reflect a mix of strategic expansion and transactions driven by portfolio rationalisation and distress, attracting interest from both strategics and smaller acquirors.

Niche and independent brands remain attractive targets as companies seek differentiated positioning and loyal communities. L’Oreal’s majority-stake in skincare brand Medik8 and its strategic partnership with Kering Beauté in fragrance and beauty highlight an ongoing push by consumer companies to expand portfolios with high-growth, premium and science-backed brands.

Channel-led plays are also gaining importance. Ulta Beauty’s acquisition of Space NK reflects a broader shift in which control of prestige retail access, global scale with branded suppliers and omnichannel reach is becoming a critical lever of competitiveness. As the category globalises further, we expect continued dealmaking focused on brand enhancement, premiumisation and distribution scale.

Food and beverages remain a top-tier M&A category, driven by resilient demand, strong brands, and predictable cash flows. However, volume growth is increasingly constrained and consumption patterns are being reshaped by health and weight-loss trends, adding pressure to traditional categories. These dynamics are driving M&A as buyers pursue scale, portfolio transformation, and geographic reach, while increasing exposure to healthier and “better for you” segments that continue to outperform conventional staples.

Mars’s $35.9bn acquisition of Kellanova reflects a push to create a global snacking leader with a broader brand portfolio, expanded distribution, and greater procurement leverage. Similarly, Ferrero’s acquisition of WK Kellogg Co strengthens its North American footprint and extends its reach across more consumption occasions, from confectionery to breakfast and family staples.

In beverages, Keurig Dr Pepper’s proposed acquisition of JDE Peet’s—followed by a strategic split into two businesses—signals a pivot towards category leadership and sharper strategic focus. The transaction is designed to create a global coffee specialist with scale advantages in sourcing, roasting, and retail distribution, while establishing a North American beverages challenger positioned to compete across carbonated drinks, hydration, and other segments.

Across Asia and the Middle East, governments and investors continue to prioritise food resilience and healthier product portfolios. Regional players and global strategics are pursuing assets that diversify sourcing, secure supply, and align with shifting consumer preferences. These themes will continue to shape food and beverage M&A in 2026.

Retail M&A remains active as operators respond to margin pressure, value-driven consumers, and rising input costs, reinforcing the importance of scale and operational efficiency. Consolidation is most evident in grocery, discount, specialty, and pet formats, where fragmented markets and thin margins are accelerating the push towards larger, more resilient platforms.

This dynamic is playing out across both physical and digital channels. In grocery, regional consolidation of supermarkets chains is continuing as operators seek purchasing power and cost leverage. In parallel, food delivery platforms are consolidating as subscale operators struggle in a structurally low margin environment. DoorDash’s acquisitions of Deliveroo and SevenRooms, alongside Uber’s investment in Trendyol Go, highlight a drive to build larger networks, improve route density, and leverage technology and data-driven consumer insights. As competition intensifies, platform economics increasingly favour players with scale, density, and data, with M&A in 2026 likely to be used to accelerate these advantages.

Quick commerce is emerging as a key area of convergence between retail and e-commerce. According to Fortune Business Insights, the segment is expected to grow at an estimated 9% CAGR between 2025 and 2032, reinforcing its relevance to retail M&A strategies. Digital adoption and expansion by technology-enabled delivery platforms are expected to keep the US as a key growth market. India and the Middle East are emerging as fast-growing markets, supported by rising urbanisation and tech-savvy consumers. M&A is increasingly being used to achieve scale, improve fulfilment density, and integrate e-commerce and quick commerce capabilities into broader retail platforms.

Broader retail convergence is also blurring the lines between retail, logistics, technology, and media. JD.com’s acquisition of Ceconomy and IKEA’s purchase of Locus illustrate how leading retailers are securing critical capabilities in supply chain tech, AI-enabled fulfilment, and omnichannel infrastructure. These moves aim to create integrated ecosystems that compete directly with Amazon and other global commerce platforms.

Together, these dynamics point to a retail M&A environment in 2026 where scale, capability acquisition, and control of the end-to-end commerce stack will be the primary drivers of deal activity.

Travel, leisure, and hospitality continue to show polarisation of demand, with consumers gravitating towards both premium and value-led formats, while the middle is increasingly squeezed. Younger and higher-income travellers are prioritising “special trips,” supporting luxury resorts, casinos, and experiential concepts. Meanwhile, more budget-conscious segments are shifting towards hostels and affordable lifestyle brands. Recent transactions reflect this split, including MCR’s acquisition of Soho House on the premium end and Brookfield’s purchase of Generator Group’s European operations, a hybrid hostel–hotel platform.

Hotel operators are also using M&A selectively to sharpen strategic focus through investments in technology, data, and platform capabilities rather than incremental expansion of owned real estate. While asset-light operating models are now well established across the hotel industry, recent divestitures increasingly reflect portfolio optimisation and capital recycling following periods of M&A-led growth.

Technology investment is centred on improving both guest experience and back-of-house efficiency. Mews’s acquisition of AI-analytics company DataChat aims to advance development of “fully agentic hospitality systems” capable of automating reservations, pricing, and operations. Hotel Communication Network’s acquisition of Crave Interactive adds AI-powered in-room engagement capabilities for luxury hotels. Similarly, Safara’s acquisition of booking platform Skipper reflects how digital-first intermediaries are using M&A to enhance discovery, personalisation, and end-to-end trip planning.

In travel, we expect more technology-led acquisitions such as AI-booking agents, corporate travel tools, and fintech-travel hybrids. Online travel agents are forming app development partnerships, developing proprietary AI agents, and collaborating with cloud providers to accelerate AI-enabled search, pricing, and servicing. The boundaries between travel, fintech, and software are blurring and we expect further activity as payment providers and travel companies form partnerships and pursue M&A.

Gaming is consolidating around scaled, AI-enabled platforms. Deals such as Apollo’s acquisition of IGT’s Gaming & Digital business and Everi, Intralot’s acquisition of Bally’s International Interactive, the Allwyn International–OPAP business combination, and Banijay’s minority stake in Tipico reflect convergence across digital gaming, lottery, media, and sports betting, with 2026 activity focused on acquiring content, data, and payments capabilities to compete in an increasingly digital market.

Restaurant dealmaking remains selective, with activity centred on established brands and scalable, franchised models. In China, intensifying competition from fast-moving domestic players is prompting Western restaurant brands to rethink their presence, increasingly favouring local partnerships and partial exits. Transactions such as Starbucks’ agreement to sell a 60% stake to Boyu Capital and Burger King’s joint venture with CPE highlight this shift towards franchise-led and locally managed strategies.

Transportation and logistics continue to be reshaped by sector convergence, as operators move beyond traditional boundaries to secure capacity, improve resilience, and modernise their networks. Strategic alignment remains the dominant M&A theme, with buyers targeting specialised logistics, high-barrier markets, and technologies that enhance visibility, routing, and utilisation.

In North America, rail consolidation—including the proposed Union Pacific–Norfolk Southern merger—is prompting interest in rail-adjacent assets such as maintenance services, inspection technologies, and transloading facilities. At the same time, technology-led transportation solutions continue to command premium valuations as operators seek more agile, asset-light models. Shipping and freight players are investing in key rail infrastructure to enhance the range of services offered to customers. Maersk’s acquisition of the Panama Canal Railway Company underscores this theme, aligning a strategic rail asset with its core intermodal container services.

Logistics providers are also deepening vertical capabilities: UPS’s expansion into healthcare logistics and retailers’ acquisitions of fulfilment and automation technologies show how operators are blending physical networks with digital platforms to support faster, more reliable delivery.

Aviation M&A remains limited but is emerging as a sector to watch in 2026, with selectively active investors and ongoing restructuring discussions that may create opportunities as regulatory clarity improves.

Overall, 2026 activity in transportation and logistics is likely to remain selective and strategy-led, shaped less by deal volume and more by targeted acquisitions that strengthen supply chain resilience, support nearshoring, and modernise operations through technology.

Global M&A volumes and values in 2025

Global consumer markets M&A values rose by 41% in 2025, even as deal volumes fell by 1%. This performance was underpinned by twelve megadeals (transactions valued greater than $5bn), up from six in 2024.

Europe, the Middle East, and Africa (EMEA), accounted for almost half of deal volume and saw the highest growth in deal activity, with a 10% increase year over year. By contrast, deal volumes were flat in Asia Pacific and decreased by 19% in the Americas.

The Americas accounted for less than a quarter of global consumer markets deals activity and more than half of deal values. The 89% increase in deal value year over year was primarily due to an increase in the number of megadeals with US targets, including large corporate buyers and private equity announcing some large public-to-private transactions. Deal values in Asia Pacific and EMEA increased more modestly, by 11% and 4%, respectively.

M&A outlook for consumer markets in 2026

For dealmakers: 2026 is not a year to wait for perfect conditions, but rather a year to use M&A to secure capabilities, reshape portfolios, and position for structural advantage. Those who move decisively with a disciplined approach to dealmaking, supported by early value creation planning and excellence throughout integration will be best placed to build conviction and capture the opportunities a rebalancing consumer economy presents.

Our commentary on M&A trends is based on data from industry-recognised sources and PwC’s independent research and analysis. Certain adjustments may have been made to source information to align with PwC’s industry classifications. All dollar amounts are in US dollars. Megadeals are defined as transactions valued greater than $5bn.

Global consumer markets deal value and volume data referenced in this publication are based on officially announced M&A transactions, excluding rumoured and withdrawn transactions, as provided by the London Stock Exchange Group (LSEG). Data is as of 31 December 2025 and was accessed between 1 and 8 January 2026. 2025e is a PwC estimate to improve year-on-year comparability, adjusting December 2025 for a reporting lag. 2025e does not represent a PwC forecast. Figures may not sum precisely due to rounding.

Consumer confidence data is based on OECD’s consumer confidence index as of December 2025 and was accessed on 21 January 2026. https://www.oecd.org/en/data/indicators/consumer-confidence-index-cci.html

Data on the expected growth of the quick commerce market is based on information sourced from Fortune Business Insights as of 5 January 2026 and was accessed on 6 January 2026. https://www.fortunebusinessinsights.com/quick-commerce-market-111868

Hervé Roesch is PwC’s global consumer markets deals leader and a partner with PwC UK.

The author would like to thank the following PwC and Strategy& colleagues for their contributions: Dominik Baumeister, Mide Coker, Sabine Durand-Hayes, Fabrizio Franco de Belvis, Anne-Lise Glauser, Lisa Hooker, Daisuke Nodera, Andrew Nolan, Emanuela Pettenò, Mike Ross, Brooke Valentine, and Christian Wulff. Special thanks also to Elena Girlich for her overall support.

Global M&A trends in consumer markets

For consumer markets dealmakers, 2026 will be about reshaping portfolios and securing capabilities through M&A, focusing on structural advantage rather than waiting for ideal market conditions.