Food and drink accounted for the majority of global consumer and retail deal value in the first half of the year, making it the most attractive subsector for dealmaking, according to a new analysis.
Total deal value among food and drink businesses more than doubled to £66.2bn in the first six months of 2026, up from £26.1bn in the same period last year, said the report by consultancy firm AlixPartners.
While the number of deals across food and drink fell from 697 in the first six months of last year to 512 in 2026, this was reflective of dealmakers focusing more on fewer higher-value deals.
“Although the total number of carve-outs has been on a steady decline, corporate acquirers are shifting their focus to the largest and most ambitious deals,” said Azeem Ahmed, corporate finance director at AlixPartners.
“Throughout the year, we can expect dealmakers to keep a sharp focus on businesses making high-quality, in-demand products that consumers are seeking in the grocery aisles and online, and that can hold up against broader market uncertainty.”
Food and drink is by far the most active sector within consumer and retail, making up 51% of deals. Apparel retail is next, making up 18%, while grocery constituted 6%.
This trend is driven by shifting consumer habits forcing big corporates to rethink what belongs in their portfolios, added James Cass, corporate finance partner and MD at AlixPartners.
“The health and wellness trend is an obvious pull factor, which is changing what consumers want to eat and drink. Price proposition and convenience are other key factors driving deal activity.”
By contrast, health and beauty recorded the highest profit margins and strongest revenue growth of any retail and consumer subsector last year, but still accounts for just 3% of total deal value, “suggesting that dealmakers are being highly selective”.
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