Private equity deal activity in the food sector will surge in 2026 as diet and health trends reshape consumer preferences, according to Portage Point managing director Peter Mangan. His forecast suggests investors are increasingly targeting companies positioned to capitalize on shifting consumer demands toward healthier options.

The convergence of wellness consciousness and investment strategy reflects broader market dynamics where food companies now face a stark choice: adapt to better-for-you product lines or risk falling out of favor with private equity buyers. This pivot represents a significant departure from traditional food investment metrics that once prioritized volume and shelf space.

Brands lacking healthier alternatives may struggle to attract PE interest as investor focus shifts toward companies demonstrating alignment with evolving dietary preferences. The current market already shows PE firms are selectively allocating capital to food businesses positioned at the intersection of nutrition and innovation.