H1 2026 in Review: Baking & Snacks Sector – Trends, M&A, Investments, and New Products

The global baking and snacks sector experienced a dynamic period of transformation during the first and second quarters of 2026. Across Europe, North America, the Middle East, and Africa, manufacturers have contended with shifting consumer demands for clean-label formulation, corporate consolidation, and large-scale manufacturing automation.

Drawing from dominant industry developments during the first half of 2026, this comprehensive review explores the macroeconomic trends, major mergers and acquisitions, capital investments, and groundbreaking product rollouts shaping the industry.

Drawing on intelligence from Milling Middle East & Africa magazine, here is a comprehensive review of the key developments shaping the sector across Q1 and Q2 2026.

Mega-mergers and acquisitions reshape the industry

Mergers and acquisitions have been the defining feature of the sector in H1 2026, reflecting an industry-wide push to build scaled platforms capable of competing simultaneously across premium, health, and value segments.

The most transformative deal of 2026 was Mars, Incorporated’s US$36 billion acquisition of Kellanova, which officially closed in December 2025 and reached full operational integration in Q1 2026. 

Following the Kellanova deal, Mars invested US$2 billion in US factory expansion to fuel growth and absorb the acquired portfolio, including a US$240 million Nature’s Bakery facility in Salt Lake City, Utah, that opened on July 30, 2025. Mars also completed a US$1301 million Canadian investment to accelerate innovation and modernization across its four Ontario facilities in Q1 2026.

CK Snacks acquired Keystone Food Products, bringing into its fold decades of manufacturing experience in masa-based and cooked corn tortilla chips, baked and fried extruded snacks, die-cut and random-shaped pieces, party mixes, pellets, and natural and organic snack lines. The acquisition is structured to retain Keystone’s workforce and operational base, with shared functions such as sales, finance, procurement, and operations integrated to drive efficiency and growth.

Eshbal Functional Food Inc. acquired the business of Gluten Free Nation (GFN), a Houston, Texas-based producer of premium gluten-free baked goods, in a move to enhance its North American presence in the rapidly expanding gluten-free market.

Creations Foods merged with Get Real Foods in a deal that reflects broader CPG trends toward platform-building for agility amid inflation and health regulations.

Associated British Foods expanded its bakery business by acquiring Abe’s Bagels, enhancing its footprint in premium baked goods.

On the bakery foodservice side, Rich’s acquired Great Kitchens Food Company to build a pizza powerhouse, while Gonnella Baking also made headlines by acquiring a frozen dough manufacturer, expanding its production capabilities in the institutional bakery segment.

On the ingredients side, the most recent acquisition in the sector is Ingredion’s US$3.7 billion acquisition of Tate & Lyle. This deal will create one of the world’s most significant speciality ingredients businesses spanning texture, sugar reduction, sweetening, and fortification, with major downstream implications for bakery and snacks formulation globally.

Regional expansion and strategic investments signal capacity expansion

Capital investment in manufacturing infrastructure has been another prominent theme in the first half of the year.

Rise Baking Company announced plans to significantly expand its existing facility in Pleasant View, Utah, with completion targeted for later in 2026, while simultaneously preparing to close its Kent plant to streamline operations amid shifting market needs.

Aryzta announced a new bakery plant in Portugal, designed to support growth across European markets while improving sustainability performance.

Puratos strengthened its Italian operations by creating Puratos Cascarano, enhancing local product development capabilities.

Cargill invested US$64 million to reinforce Belgium as a European food innovation hub, while KPM Analytics opened an advanced baking laboratory to support data-driven quality control and product optimization.

Mondelēz International launched applications for CoLab Tech 2026, an accelerator program focused on emerging snack technologies and digital innovation.

Strategic partnerships became increasingly important as Ingredion entered into a collaboration with India’s Sanstar Limited to expand access to food ingredient markets, while simplyFUEL partnered with Humble Growth to scale distribution and operations.

DS Group and Ben’s Cookies formed an alliance to introduce the British premium cookie brand to India, reflecting the industry’s emphasis on international expansion.

Eshbal continued its aggressive product expansion, accelerating its North American e-commerce rollout following key milestones, including the formal acquisition of Gluten Free Nation, securing a majority stake in Dare to Be Different Foods, and establishing localized manufacturing hubs through a collaborative partnership with Queen Street Bakery.

In Africa and the Middle East, local bakery companies continued investing in expansion. Holland Bakery opened a new café in South Africa, while Kenya-based BBROOD leveraged rising consumer demand for artisanal sourdough bread. South Africa’s Khayelitsha Cookies secured export agreements with UK retailers, highlighting growing opportunities for African baked products in international markets.

Edita Food Industries reported strong revenue growth in the first quarter, supported by rising demand across its snack portfolio and by expanding its African footprint through the acquisition of HoHos, Twinkies, and Tiger Tail brand rights across Africa outside the MENA region, pursuant to a sale-and-assignment agreement with Hostess Brands.

Africa-focused private equity firm Adenia Partners made its first investment from the newly launched Adenia Entrepreneurial Fund I by acquiring a stake in Maymana, a leading Moroccan manufacturer of premium pastries, baked goods, and catering services.

New Products: Clean Label, Functional, and Co-Branded Innovation

Product innovation in H1 2026 has been defined by three overlapping themes: clean-label reformulation, functional nutrition, and co-branded collaborations that leverage cross-category brand equity.

Real Good Foods introduced high-protein flour tortillas aimed at consumers seeking low-carb and high-fiber alternatives.

Simple Mills strengthened its clean-label positioning after securing Non-UPF Verified certification for 20 products, reflecting growing consumer interest in minimally processed foods.

In Kenya, DPL Festive launched its Asili bread range, emphasizing traditional taste and wholesome ingredients, while India’s Anmol Industries expanded its portfolio with YOLO Choco donut cakes.

Most recently, Ferm Food launched a gluten-free, fermented bread binder for industrial bakeries in Q2 2026, addressing common production challenges, including loose structure and excessive crumbliness, by using fermented buckwheat and fava beans sourced from EU agricultural networks.

The Q1-Q2 2026 baking and snacks sector demonstrates transformative consolidation, a surge in health-conscious innovation, massive capital investments in production infrastructure, and regional expansion across Africa and the Middle East, positioning the industry for sustained growth in functional snacking, bakery-inspired confectionery, and premium better-for-you offerings.

Overall, the baking and snacks sector entered the second half of 2026 with strong momentum. Investments, acquisitions, strategic partnerships and a robust pipeline of innovative products positioned manufacturers to capitalize on evolving consumer preferences and intensifying competition.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.