Health is the New Growth Market in European F&B M&A

Private equity has found its appetite for health. According to Real Deals, health-focused food and beverage buyouts, spanning supplements, natural products and vitamin drinks, now command a median value of €85m, some 41% higher than a standard buyout in the sector.

This isn't happening in isolation. As we explored in our piece on functional food and drink, consumer behaviour has shifted to "actively seeking the good," creating serious momentum for functional brands, evidenced by deals like Mondelēz's acquisition of Grenade and Citation Capital's $480m investment in Cibo Vita.

Weight-loss drugs are accelerating the trend. ING now forecasts the global GLP-1 market will reach $100bn by 2027. Adoption is moving fastest in the UK and Nordics, where clearer regulatory pathways and strong digital health infrastructure are driving early uptake, a dynamic we highlighted in our analysis of GLP-1's impact on UK retail and M&A, where roughly 5% of UK adults already use these medications, fuelling demand for high-protein, nutrient-dense products.

Crisps and chocolate are giving way to nutrition bars, supplements and high-protein yoghurts, supported by Grand View Research's projection that the global functional foods market will grow at an 8.6% through 2030.

Younger, health-conscious consumers are the driving force. For dealmakers, whether pursuing investments or bolt-ons, functional and better-for-you food and drink is no longer a market stuck at the bottom shelf, it is now in prime position and it's a structurally outperforming sector that both start-ups and established groups should be positioning for now.