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Food and beverage companies in 2026 will face the challenge of catering to a consumer full of contradictions. Shoppers are increasingly focused on health and wellness, seeking clean-label options that appear less processed. However, they still desire convenience, indulgence, and value in their packaged foods and drinks.
To address these conflicting trends, food and beverage giants are revamping their portfolios. Some are using mergers and acquisitions to expand their presence in the health and wellness sector. Others are innovating to offer better-for-you twists on their core brands. For instance, PepsiCo has introduced a prebiotic version of its soda and artificial dye-free options for Cheetos and Doritos.
Companies will also need to adapt to changing dietary guidelines, such as the focus on reducing ultraprocessed foods. The rise in the use of GLP-1s for weight loss is prompting businesses to enhance their products with protein and fiber.
Weird is winning
To stand out in a competitive market, food companies are embracing unconventional ideas. Consumers are actively seeking out unique flavors and brand collaborations, especially younger demographics like Gen Z and millennials.
Nestlé, for example, has launched innovative products like a Tombstone pizza with a French fry-style crust and a DiGiorno Thanksgiving Pizza topped with holiday-inspired ingredients.
The trend of unusual and creative products is expected to continue as consumers crave novelty and excitement in their food choices.
M&A poised to sizzle
2026 is set to see a surge in mergers and acquisitions as companies aim to enhance their portfolios and drive growth. Businesses will target acquisitions that align with consumer preferences for healthier options and weight management solutions.
Smaller, niche operators are likely to be prime targets for acquisitions, with companies seeking strategic partnerships to boost their market presence.
Alcohol innovation is a priority as sales decline
With alcohol consumption at a historic low, beer and spirits makers are under pressure to innovate and revitalize sales. Companies are exploring new product offerings and expanding into categories like ready-to-drink beverages.
Consumers are shifting towards smaller, at-home occasions and seeking healthier, lower-calorie options. Companies are responding by introducing nonalcoholic and energy drinks to diversify their portfolios.
Health and wellness to define consumer trends, policy
Consumers are increasingly focused on functional ingredients like protein and fiber to support their overall health. Companies are personalizing nutrition options and incorporating ingredients that promote energy and gut health.
The “Make America Healthy Again” movement is driving a shift towards cleaner, nutrient-dense foods. States are implementing regulations to promote healthier eating habits, challenging the food industry to adapt.
Better-for-you beverages play up indulgence
Beverage companies are innovating to reduce sugar and calories while enhancing the nutritional value of their products. Traditional and nostalgic flavors remain popular, appealing to consumers seeking a balance between health and indulgence.
Classic soda flavors continue to resonate with consumers, prompting companies to invest in revitalizing older brands and offering low-sugar alternatives.