Food Trends Shaping 2025: Functional foods and Acquisition Strategies

In 2025, the food and beverage landscape stands at a turning point. Inflation is slowing down consumer spending, industry giants are revising their strategies, and new consumption habits are emerging. Amid this shifting environment, four major trends are defining the year: functional foods, and a delicate balance between innovation and cost.

Photo d'une dame en train de choisir ses courses.

Food Giants Facing the Winds of Change

Inflation and rising raw material costs are weighing heavily on sales and margins. To withstand these pressures, some companies are undertaking deep restructurings, while others are driving growth through targeted acquisitions, often modest in scale but high in strategic value.

These moves reveal a common urgency: adapting to emerging expectations while preserving profitability in a market where consumers, more budget-conscious than ever, remain demanding.

M&A: Smaller, Smarter, More Targeted

In 2025, M&A (Mergers & Acquisitions) are no longer measured by their scale but by their precision. Major players are increasingly choosing to invest in niche brands that capture emerging trends:

  • PepsiCo invested nearly $2 billion to acquire Poppi, a prebiotic soda brand.
  • Hershey acquired LesserEvil, a leader in healthy snacking.
  • Ferrero purchased WK Kellogg for $3.1 billion, strengthening its U.S. footprint.

This targeted approach brings a welcome agility in a reshaping market.

Proteins, Collagen, Premium Ingredients: The Rise of Functional Foods

Functional foods—those that promise energy, immunity, or vitality—are experiencing explosive growth, with more than $300 billion in U.S. sales already.

Consumers are increasingly seeking foods known to improve digestion, skin, and sleep, with a notable rise in probiotic-rich products this year.

A Market Balancing Innovation and Pragmatism

The 2025 food trends reveal a dual dynamic:

  • Adapting to economic constraints through targeted M&A, revised product formats, and improved cost management.
  • Catering to a multifaceted consumer, who wants to eat better—while keeping an eye on their budget.

Functional foods and acquisition strategies are thus becoming the cornerstones of a year where every bite is also a strategic decision.