M&A Trends
M&A activity in the Consumer industry remained robust in Q4 2025, as improved credit conditions and strategic buyer confidence supported continued deal execution.
While total transaction volume stayed muted, deal value climbed. The highlight was Mars Inc.’s $36 billion acquisition of Kellanova, bringing snack brands such as Pringles, Cheez-It, and Pop-Tarts together under Mars.1
Q4 2025 also saw steady deal flow across Apparel, Beauty, and Household Products, with both corporate and private equity buyers selectively targeting differentiated consumer brands.
Market Dynamics
- Consumer spending held up but was uneven across income groups. October headline retail sales were flat, yet “core” retail sales jumped +0.8%, signaling steadier underlying demand even as lower/middle-income households pulled back more than higher earners.2
- Affordability pressures remained the central overhang. Imported-goods cost pressure and elevated food, housing, and healthcare costs continued to weigh on budgets and value-seeking behavior.1
- Labor was “cooling, not cracking,” but it’s a key watchpoint for 2026. November payroll growth rebounded, unemployment printed 4.6% with shutdown related measurement issues, and wage growth slowed to ~3.5% YoY, supportive for disinflation but a potential headwind to consumer demand if the trend persists.2
- Sentiment improved off lows but remained historically depressed. The Consumer Sentiment Index rose across the quarter, yet consumers continued to cite high prices as a major burden.3
- Holiday demand shifted further online and was promotion-led. Adobe estimated $44.2B in online spend over Thanksgiving to Cyber Monday, with Cyber Week +7.7% YoY, reinforcing that consumers are still spending, just more cautiously.4
Sources: Capital IQ as of 12/31/2025, WSJ1, Reuters2, UMich3, Adobe4
Learn More
Reach out to Dinan Capital Advisors Managing Director Lisa Kaufman for more report insights.
