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Food and beverage companies in 2026 will have to serve consumers full of contradictions.
Shoppers are increasingly prioritizing health and wellness and demanding more clean label food options that appear less processed. At the same time, consumers still want the convenience, indulgence and value elements traditionally associated with packaged foods and beverages.
To address these conflicting trends, food and beverage giants are rethinking their portfolios and some are strengthening their presence in the health and wellness sector through M&A. Others are relying on innovation to create a better direction for their core brands. For example, PepsiCo recently launched namesake sodas and artificial dye-free prebiotic versions for Cheetos and Doritos.
As the Trump administration and the “Make America Healthy Again” movement take aim at ultra-processed foods, including in updated dietary guidelines, companies will face even greater pressure to transform their portfolios. As consumer use of GLP-1 increases for weight loss, more companies are adding protein and fiber to their products.
The key challenge for businesses in 2026 will be to meet all the conflicting demands of consumers while focusing on operations and streamlining their portfolios. Here are five trends Food Dive is watching for in the coming year.
The weird guy is winning.
To capture consumer attention in an era of fierce competition and slowing sales, food companies are starting to think outside the box.
While shoppers once often accepted strange or odd food and drink items as part of seasonal offerings when browsing stores, many are now actively seeking out unusual flavors or brand collaborations.
It’s a trend that’s especially popular with younger consumers, with 90% of Gen Z and Millennials looking for new food and drink flavors, with the majority saying “the wilder the better.” According to NACS Magazine.
“What’s weird is what beats the grocery store aisles.” Mike Van Houten, Vice President of Commercial Excellence at Nestlé USA, said:
Nestlé has launched various products such as: Tombstone Pizza with French Fry Style CrustDiGiorno’s Thanksgiving Pizza featuring Seattle’s best campfire s’mores roast and topped with roasted turkey, green beans, crispy onions, dried cranberries, and gravy.
Interest in the unusual is unlikely to fade away anytime soon, Van Houten said. There is hope among most consumers that weirdness will become the mainstream of product launches going forward, even if “extreme things with a little more shock value may come and go.”
2025 has been a hotbed of unusual food launches as companies try to capture the attention of price-conscious consumers.
In an effort to stand out, some food CPGs have chosen to collaborate and combine the brand assets of two well-known and recognized brands.
For example, Campbell’s Company: Partnering with Pabst Blue Ribbon In beer-flavored soup. Kellanova collaborated with Wendy’s. Cheez-It, inspired by the fast food chain Bacon Burger.
“Consumers are definitely more open to trying different things,” Nico Amaya said.President, North America, Kellanova. “(They’re) looking for partnerships, collaborations that may not be aligned.”
Amaya said unusual collaborations “drive immediate awareness and immediate interest” in the product and help drive potentially lost consumers back to one or both of its core brands.
M&A expected to heat up
A lively M&A environment is expected in 2026 as companies seek to fill gaps in their portfolios and increase margins amid a challenging sales environment.
Erin Lash, senior director of consumer equity research at Morningstar, said companies will look for acquisitions that can broaden consumer interest in areas such as supporting healthier eating habits or the use of GLP-1 drugs for weight loss.
“It’s likely still in the lead,” Lash said. He added that the acquisition targets “will likely be small, niche operators rather than large, innovative transactions.”
Small, targeted acquisitions have been a popular strategy in the food and beverage industry in recent years, including in 2025. For example, PepsiCo Acquired prebiotic soda brand Poppi While nearly $2 billion Hush swallowed. lower evilThis company makes popcorn, puffs, and rings using ingredients such as coconut oil and avocado oil.
Larger deals are likely to be struck, especially as margins for food manufacturers are under pressure from high input and operating costs. Except in the case of private ownership Acquired by Mars for $36 billion Kellanova, maker of Cheez-Its and PringlesThe food sector has largely avoided major mergers for many years.
Brian Choi, Managing Partner and CEO of The Food Institute, said: Large CPG companies are seriously considering more multibillion-dollar deals than ever before. Transactions can be a way for companies to combine operations to help reduce costs through plant closures, job cuts and other eliminations of redundancies.
“With pressure from shareholders and management’s desire for greater volume of growth, they are actually moving up the enterprise value spectrum to make acquisitions,” Choi said. “They are looking for larger, if not transformative, acquisitions that can drive efficiencies and potential growth opportunities.”
Alcohol innovation takes priority amid declining sales
After drinking Reach record low by 2025Beer and spirits manufacturers must expand their portfolios or introduce bold new innovations to turn around sluggish sales.
Data from IWSR shows that total alcohol volume has decreased by 19% since 2019, and by 4% in the first half of 2025 alone compared to the same period last year. Growth is particularly notable in the ready-to-drink beverage segment, with sales up 2% in the first half of 2025 compared to the same period last year.
“Higher costs and tariffs weighing on the alcohol sector are reinforcing cautious consumer spending, increased theft and the evolution of consumption towards smaller households and weekly events,” Emily Neill, COO of IWSR, said in a statement.
To respond to the downturn, companies must accelerate the pace of innovation to activate and engage consumers, according to Dan Su, equity analyst at Morningstar. But with so many consumers choosing from an endless variety of craft beer options, flavor innovation alone isn’t enough.
Instead, some players have turned their focus back to their core brands and launched lower-calorie or non-alcoholic versions of classic beers. Consumers remain loyal to their favorite brands despite inflation, but seek value through bulk purchases or purchases from discount chains, Su said.
“The common theme throughout is that companies continue to focus on production innovation and investments in branding and marketing as a way to strengthen their position in the market and continue to engage with consumers,” Su said.
Several companies are working to further diversify their portfolios by adding beverage options beyond beer. molson coors and Anheuser-Busch We’ve added both non-alcoholic and energy drinks to our beverage offerings.
Health and Wellness Defining Consumer Trends and Policies
Protein, fiber and other functional ingredients are expected to take center stage this year as consumers look to maximize the health benefits of the products they eat.
Protein is still king, but fiber is quickly taking a backseat as the next functional ingredient, according to a Dataessential outlook. More than half of shoppers consume food Drinks for intestinal health It will become important to them in 2026. Increased use of GLP-1 Among Americans.
Consumers expect their food to support all aspects of their health, from physical to mental health. More and more ingredient companies are looking at ingredients that increase energy or induce sleep. McKinsey found itIt drives us to personalize nutritional options for consumers from when they wake up to when they go to bed.
McKinsey said, “Rather than thinking of health foods as foods without certain ingredients such as gluten or sugar, consumers are now looking for foods that contain high value-added ingredients such as protein.”
The Trump administration’s ‘Make America Healthy Again’ movement is expected to begin in earnest. Movement against ultra-processed foodswith The FDA is working toward justice. A term that will pave the way for future regulations. The state government He also picked up the mantle of food regulation.It banned certain ingredients or additives and sparked legal battles with the food industry.
But despite the negative associations with ultra-processed foods, they continue to grow as a way for Americans to get their nutrition. Consumers are attracted to protein-rich popcorn, fiber-fortified sodas or other fortified foods.
Beverages that are better for your body bring you joy
Almost all beverage companies are trying to reduce sugar and calories to create better drinks, Su said. From energy drinks to soda, companies are focusing on functionality by adding nutritional ingredients like protein, fiber, and prebiotics.
Despite the shift toward healthier choices, there are still consumers who view soda as a beverage in moderation, Su said. As a result, many better brands are trying to capitalize on two polarizing trends by relying on traditional and nostalgic flavors.
Consumers will likely continue to seek out traditional soda flavors such as lemon-lime and cherry. Beverage predictions for 2026 says beverage consultant Flavorman. PepsiCo launched a prebiotic version of its namesake soda, and new entrants like Stiller’s Soda have tried to capitalize on the low-sugar, nostalgic, better-for-you trend.
As healthier options become available, some are doubling down on traditional sodas. Consumer nostalgia for older beverages was at the forefront of the carbonated drinks market in 2025, with the following companies: Neat Dr. Pepper and coke Older brands RC Cola and Mr. Invest in Pibb.
“Which is better for you is probably the long-term trend,” Su said. “(But) it still has the charm of a classic recipe.”
