Consumer markets in transition: Focus, scale and opportunities in a changing landscape

Consumer markets in context 

Van Echtelt points out that the 2026 outlook for transactions in the Dutch consumer markets is difficult to compare with the general expectation for global M&A activity, as outlined in PwC’s Global M&A Outlook. ‘Anticipated developments in consumer markets suggest fewer extremes compared with the expected investment peaks in technology and AI, as well as in the energy transition and defence sectors. However, given the size of the broader consumer sector and prevailing trends, a steady stream of deal activity continues – supported by underlying consumer demand for leisure activities and food. This creates opportunities for dealmakers.’ 

Shifting consumer demand creates opportunities 

There is a steady undercurrent of transactions driven by portfolio optimizations, growth needs and succession/PE exits. Within consumer markets, transactions tend to be concentrated in the broader agri-food chain, with an increasing focus on health and convenience. ‘Following a couple of quieter years, we observe that larger transactions are returning, alongside increased activity in the leisure sector,’ explains Van Echtelt. ‘We expect these trends to continue in 2026.’ 

The leisure and hospitality sector is regaining popularity after a period of reduced deal activity among companies operating in the sector, which is on the move again and recovering after the disruptions in 2020-2022. Even with pressure on discretionary spending, we expect the trend in consumption – from purchasing goods to gaining experiences – to continue. Some of the larger holiday park groups currently owned by investors may come to market. The transaction involving RCN and Blackstone in summer 2025 demonstrates a level of investor interest. 

The food sector is clearly undergoing a transformation, with themes such as health becoming increasingly prominent. Van Echtelt observes that consumers are becoming more conscious, paying more attention to their health and actively seeking products that contribute to a healthy lifestyle. On the M&A market, this trend translates into an increased focus on companies aligned with these growth areas. 

Last year’s acquisition of Vermaat by Compass Group illustrates this trend. The deal enabled Compass to expand geographically across mainland Europe and, in particular, to reinforce its position in the premium food sector in response to rising demand for healthier options and a stronger focus on experience, convenience and customization. 

In addition, we expect increased activity in the acquisition of the right capabilities, particularly in technology (AI applications) for retailers and travel organizations, as well as direct-to-consumer channels for consumer goods producers.  

Upscaling and focus are the driving factors behind portfolio restructuring 

2025 marked the return of big deals after a relatively quiet 2024. The key driver was focus and strengthening of market positions. To remain future-proof, companies deliberately pursued transformation and scale-up of activities. Keurig Dr Pepper’s $18 billion takeover of JDE Peet’s was one of the biggest deals in consumer markets in 2025.  

‘That deal was all about strengthening focus and combining forces,’ explains Van Echtelt. ‘The transaction and intended spin-off will create a stronger, more focused global coffee company with a better competitive position in a challenging market, along with a focused beverage business.’  

FrieslandCampina also gained additional scale and secured supply through the merger with the Belgian company Milcobel, strengthening its competitive position in a market with thin margins.  

Optimization for one, consolidation for another 

The trend toward portfolio optimization creates opportunities for specialized players. Optimization for one party creates consolidation potential for another. ‘Consolidation is an important driver of M&A, allowing companies to strengthen their market position,’ says Van Echtelt. 

A company like Unilever is focusing on divesting and separating divisions to concentrate on faster-growing and more profitable categories. Last year’s sales of Unox, Conimex and The Vegetarian Butcher, as well as the IPO of its ice-cream division, illustrate this trend. Van Echtelt says, ‘These divisions are either non-core or slower-growing, and are put up for sale. This gives others the  opportunity to develop them further.’ 

Unilever will likely continue to rationalize its food division. Nestlé’s sale of its water division is also on the horizon, and other food companies are contemplating divesting non-core assets. In early 2026, for example, DSM Firmenich sold its Animal Nutrition division to CVC. ‘Again, the rationale is to increase focus on selected areas,’ says Van Echtelt, ‘and, in this case specifically, to reduce exposure to volatile vitamin prices.’

Recommendations for dealmakers

The underlying trends create opportunities for dealmakers. Companies that stay focused on the consumer, prioritize operational efficiency and strategically refine their portfolios will generally perform well. M&A is an essential tool for optimizing portfolios in terms of scale and focus, while also enabling a flexible response to changing consumer preferences. Investors who wait for a broad market recovery risk falling behind.