Investing in wellness: Deal activity in the UK's health-conscious market

The impact and effects of Covid-19 coupled with an aging population has altered society’s perspective on health, leading to an increasing focus on personal health and wellness. This has resulted in a global surge in consumers purchasing vitamins, supplements and functional health products to improve and prolong their lives. 

Food and drink M&A trends in 2025

It is clear from Holland and Barrett and Well Pharmacy’s concession collaboration that businesses within the space are alive to the fact that wellness is important to people. 

On 1 December 2025 Holland and Barrett and Well Pharmacy announced a new concession partnership which saw Holland and Barrett launch its own label vitamins, supplements, specialist foods and sports nutrition products in Well Pharmacy’s Birchwood store. The collaboration also included a digital product discovery feature which suggests that we should expect to see an increase in the use of AI technology in the food and drink industry.

Deal volume in the UK food and beverage sector remained strong throughout 2025 according to a report by Grant Thornton LLP which identified 49 deals in Q3, a 6% decline quarter-on-quarter but above the average of 45 deals per quarter and higher than seen at the beginning of the year. Good activity could be seen in the functional health sub sector during the course of the year.

This suggests a positive outlook for the coming year, particularly as interest rates are expected to ease and the UK economy rebuilds. There were however notable announcements in November’s Budget that are likely to impact manufacturers in some of the sub sectors, such as the expansion of the sugar tax, national minimum wage rises and increased business rates for properties such as warehouses . 

Private equity investment in the industry was also steady with deals such as LDC’s investment into Bespoke Kitchen Foods being amongst the highlights. There also appears to be an appetite for investment in supplement start-ups such as Zooki, a nutritional supplement company who received a £1.8m investment from NatWest and Michael Vaughan, former England cricketer’s investment in Uthful, a new premium health and wellness supplement focused on performance, vitality and longevity. This suggests that lenders and investors are tuning into the potential for wellness products and particularly, nutritional and performance supplements to diversify the market.

Challenges for wellness products in the UK 

As developments are made in the wellness sub sector of the food and beverage industry, there are some obstacles that could hinder progress. 

1. Despite a shift in mindsets, the actual consumption of vitamins and supplements is not at the levels expected. As such, this could lead to manufacturers and investors taking a more cautious approach when considering entering the space.
2. Consumers report the cost of such products as a barrier, especially during the cost of living crisis when it is a priority to conserve money and only purchase on necessities.

With a consumer drive for wellness products and the ever-increasing emphasis on health consciousness, it seems inevitable that we’ll see a sustained focus in both the production of vitamins and supplements and the appetite for investment in this sub sector.