U.S. food industry undergoes transformation in 2025
In a significant shift, major food companies in the United States have been downsizing their operations in 2025. This move comes as a response to changing consumer preferences and a slowing market. Key players such as Kraft Heinz, Keurig Dr Pepper, and Unilever have all made strategic decisions to streamline their businesses for better focus.
While some companies are reducing their portfolios, others are using mergers and acquisitions to expand into new markets and capitalize on emerging trends. PepsiCo’s acquisition of Poppi for $2 billion and Hershey’s purchase of LesserEvil popcorn are examples of this strategy, aimed at tapping into the health and wellness sector.
Meanwhile, corporate spinoffs have also been a trend, leading to the consolidation of the industry. Mars and Ferrero’s acquisitions of parts of Kellogg’s business have positioned them as stronger competitors in the market for the year ahead.
As businesses continue to adapt to changing market dynamics, M&A activity is expected to remain a key strategy for growth in the food industry. With sales facing challenges, companies are actively reshaping their portfolios to stay competitive and meet evolving consumer demands.