Is there potential for increased M&A activity in the pet food industry in 2026?

Merger and acquisition (M&A) activities in the pet food and pet care industries have seen a decline over the past few years, with 2025 being no exception. Tracking 23 deals for the year, it was noted that nearly half of these deals came from the Nutriment Co. in the U.K. This total of 23 deals in 2025 was down from 26 in the previous year, showing a continuing slowdown in M&A activity in the sector. The numbers have been decreasing steadily over the past three years, from a peak of 58 deals in 2021 to just 23 in 2025, indicating a significant decline in M&A transactions.

In a blog post for Pet Age in December 2025, Carol Frank, founder of the BirdsEye Advisory Group, discussed the current state of M&A in the pet industry, calling it the “slowest period in my 15-year M&A career.” She shared insights from six active acquirers in the pet space on their outlook for M&A prospects in 2026. While cautiously optimistic about a potential increase in activity in 2026, experts believe that it is unlikely to reach the levels seen in 2020-2022.

Despite the overall slowdown in M&A activity, certain categories within the pet industry continue to attract investor interest. These include consumables, with a focus on cat food due to the steady or increasing ownership of cats compared to dogs. Other attractive categories include pet treats, pet services, premium and functional products, and pet supplements and health products. Some of these categories are also experiencing growth in sales, making them more appealing to investors looking for profitable growth opportunities.

Investors are looking for companies with strong fundamentals, barriers to entry, margin potential, and effective management. Evaluating a company’s growth potential and aligning it with valuation is crucial for investors like Harrison Seeman of Central Garden & Pet. Being well-positioned, well-run, and prepared for acquisition are also important factors that potential acquirees should focus on, according to experts in the industry.

The insights shared by experts primarily focus on M&A activity in North America and do not extend to other regions like Europe. As the industry looks ahead to 2026, there is cautious optimism about a potential uptick in M&A activity, but the overall trend seems to be pointing towards a continuation of the slowdown observed in recent years.