Key trends shaping health and wellness acquisitions & growth in nutrition industry

The nutrition industry is experiencing significant consolidations, driven by strong consumer demand for health and wellness solutions. H&H Group, an international health and nutrition company, says these products are remarkably resilient in today’s uncertain economic landscape. In response, companies are increasingly acquiring science-backed, successful brands to diversify their portfolios. 

Nutrition Insight explores the ongoing consolidation with Jason Wang, CFO & COO at H&H Group, which owns multiple health, human and pet nutrition, and personal care brands. 

Wang says there is a strong appetite for acquisitions and investments into the health and wellness market, specifically in nutrition.

“Recent deal activity signals renewed mergers and acquisitions (M&A) momentum. Established businesses are recognizing that acquiring health and wellness brands, with loyal consumer bases and proven efficacy, is the fast route to diversification and growth.”

In 2026, Wang expects fewer but higher-quality deals. “Assets demonstrating pricing power, operational adaptability, and science-led differentiation are commanding premium interest, while undifferentiated wellness brands are being filtered out.”

“As more volatile sectors face pressure, health and wellness will attract even greater capital. Further consolidation is inevitable,” he predicts.

Strategic realignment

The start of 2026 already saw several acquisitions and purchasing announcements in the nutrition and supplement space.

For example, Unilever moved to acquire the green gummy company Grüns, while Danone bought Huel to expand its functional nutrition portfolio and Herbalife acquired the personalized nutrition company Bioniq. Also, Lone Star Funds announced it will buy Lonza’s Capsule & Health Ingredients and the supplement brand Metagenics purchased the probiotic brand Symprove. 

Wang says this ongoing consolidation in nutrition reflects a broader strategic realignment across the fast-moving consumer goods (FMCG) sector.

Amid macroeconomic instability, Wang says health and wellness is one of the few sectors with attractive growth (Image credit: H&H Group).“Established businesses are recognizing that organic entry into high-growth wellness categories is slow and expensive. Instead, acquiring brands with proven consumer bases, clinical credibility, and loyal repeat customers is the more efficient route.”

He adds that, amid macroeconomic instability, health and wellness is one of the few sectors that remains attractive when growth is scarce elsewhere.

“Beyond economic trends, there are cultural shifts driving the trend — from aging populations, increasing health consciousness, and a fundamental change in how consumers invest in preventative health. They represent a generational change in consumer behavior that’s reshaping where long-term value will be created. Acquirers know that and can see the margins it delivers.”

Focus on cross-category resilience

Rather than buying brands, investors focus on acquiring proven category leadership. Wang says that M&A strategy has shifted from scaling in core categories to acquiring capabilities across adjacent health segments because consumer health and wellness offer stable demand and attractive margins when growth is scarce.

“Acquirers are deliberately expanding across categories, leaving behind the concept of single-category champions. Consumer loyalty, market share, and repeat purchasing have become the new deal metrics.”

“Buyers are also prioritizing assets that unlock revenue through science, trust, and specialist channels. That marks a clear departure from classic FMCG integration playbooks.”

For example, Wang says that when the H&H Group acquired Zesty Paws in 2021, its strategy was to integrate a proven category leader in US pet supplements to build resilience across the company’s segments.

Trends driving demand for health and wellness include aging populations, increasing health consciousness, and investing in preventative health.“Since then, we’ve grown the Pet Nutrition and Care segment of our business to 15% of total group revenue, with our pet supplements category achieving 14.3% growth.”

Diversifying portfolios

Beyond smart risk management, Wang says that a diversified portfolio is a critical strategy for growth.

“It allows FMCGs to leverage the opportunities across categories, ensure stability amid market changes, and quickly adapt to trends. That’s why we’re seeing more companies evolve and expand their portfolios.”

Although it’s a winning strategy, he cautions that diversification only works with an overarching focus. The most successful companies are those anchoring their portfolio expansion around a clear consumer need.

H&H Group is delivering this model across its three segments of adult, baby, and pet nutrition and care, where the company’s focus is on providing nutrition and wellness for the whole family.

“With a balanced health portfolio, across different segments, companies can leverage their credibility to future-proof, innovate, and tap into new markets,” says Wang. “In fact, for us, all three segments grew simultaneously in 2025, contributing to double-digit (10.3%) growth in our annual results.”

“The trend toward diversification is likely to continue this year, amid continued market volatility and geopolitical conflict.”

“Remarkable resilience”

According to Wang, health supplements have demonstrated remarkable resilience across turbulent economic cycles.

Nutrition and supplements are increasingly classed as essentials, especially in immunity, metabolic health, women’s health, and longevity.“Unlike many other consumer categories, nutrition and supplements have increasingly shifted to being classed as essentials rather than luxury purchases — especially in immunity, metabolic health, women’s health, and longevity.” 

“This is a trend accelerated by the COVID-19 pandemic, which fundamentally reset how people think about their health and their wellness priorities.”

He says that the health and wellness category is one of the most resilient sectors globally, withstanding high and low inflationary conditions and volatile currency environments. Alongside aging populations, rising health consciousness, and increasingly well-educated consumers, this positive trend ensures supplements continue to be a core part of consumers’ daily routines.

“Strategic and financial buyers now view supplements as defensive growth assets,” explains Wang. “Even amid macro volatility, our Adult Nutrition and Care segment maintained steady growth in 2025, with Swisse achieving the milestone of US$1 billion in annual revenue, just a decade on from our acquisition of the brand. That sustained performance across varying economic conditions is precisely what makes the category so compelling to investors.”

Science-backed solutions

Wang underscores that a premium positioning in nutrition and supplements is grounded in R&D investment, consumer trust, and efficacy. “Products backed by clinical science will always demand a more premium price point and lead to repeat purchasing — crucial to margins.”

“Today’s consumers are more informed and more scrutinizing,” he details. “They’re reading labels, interrogating ingredients, and demanding thorough evidence. Any brand that can’t substantiate its claims is quickly losing ground.”

As science has become a commercial differentiator, he says the H&H Group invests heavily in R&D.

Wang underscores that a premium positioning in nutrition and supplements is grounded in R&D investment, consumer trust, and efficacy.For example, the company established the Biostime Institute for Nutrition and Care to drive scientific innovation in maternal, infant, and family nutrition. “It’s this credibility that has driven Biostime to an all-time high market share (17.1%) in China’s super-premium infant milk formula category in 2025,” says Wang.

Reshaping competitive dynamics

Wang notes that the ongoing consolidation in the FMCG sector changes the dynamics considerably. He predicts composition will intensify as larger players acquire science-backed brands and integrate them into diversified health portfolios.

“The brands that survive and thrive will be those with genuine clinical credibility, strong category positions, and loyal consumer bases that are difficult to replicate.”

“From a brand identity and positioning standpoint, there has to be a strategic and careful balance,” Wang advises. “Acquirers must not overlook what made an asset valuable in the first place. In nutrition, that trust is often hard to win but easily lost. Consumers in this space are informed and quick to notice when a brand’s values or quality shifts following an acquisition.”

He says that winning companies will see the value, resist the temptation to impose their own blueprint, and embrace the best of the brand. “Scaling infrastructure, distribution, and R&D investment are all the right moves in creating value, while holding on to a brand’s identity and loyal base.”

“The most successful integrations will be those that give acquired brands resources to grow, while preserving authenticity and scientific credibility that initially built their following,” Wang concludes.