Posted Tuesday 27th January 2026
“2026 is shaping up as a defining year for the UK consumer investment landscape. But rather than a broad-based recovery, the outlook points to selective capital deployment with a focus on the top-tier companies.
On the venture side, consumer remains a challenging category for generalist funds. Capital will continue to concentrate in businesses that are brand and technology-led, as well as those with a significant omnichannel approach, showing a strong focus on the core dynamics of pricing, personalisation, customer loyalty and strong brand metrics.
Consumer brands are certainly anticipating a more pragmatic revival of interest. Growth equity and private capital are increasingly willing to back profitable or near-profitable brands. Founder-led businesses in categories such as wellness, beauty, pet and premium food remain attractive, particularly where communities and repeat purchase provide insulation from promotional pressure.
M&A is likely to be the more reliable exit route in 2026. Strategic buyers in fmcg, retail and consumer service are gradually returning as balance sheets stabilise and inflationary pressures ease. However, deal structures will remain conservative. Bolt-on acquisitions, portfolio buys and minority stakes are expected to dominate, with earnouts frequently used to bridge valuation gaps. Private equity will continue to play a central role through buy-and-build strategies, often targeting sub-scale but profitable brands that can be scaled operationally.
After a few quiet years, the mood music feels encouraging for consumer brands, and the investment and M&A scene more broadly in 2026. Fast-growing, profitable businesses with significant brand loyalty are certainly going to look to capitalise on this more positive landscape, which could lead to a vintage year for the brands and dealmakers.”
This excerpt was originally featured in the article “Will 2026 be the year food & drink dealmaking comes back?” from The Grocer, used with permission (please note the page is behind a subscription)
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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