Imagine a diet cereal brand suddenly being bought by a candy manufacturer. It may sound unexpected, but there’s more behind the move than meets the eye.

As consumers become more health-conscious, seeking snacks with fewer calories, simpler ingredients, and less artificial processing, major food companies are adapting by investing heavily in healthier alternatives to avoid being outpaced by the competition as shoppers turn away from traditional, sugary treats.

That shift became more evident this April when the U.S. Department of Health and Human Services (HHS) and the U.S. Food and Drug Administration (FDA) implemented new measures to phase out six petroleum-based synthetic dyes from the U.S. food supply by the end of 2026.

This led many manufacturers to quickly join the initiative, pledging to eliminate synthetic dyes entirely by the end of 2027.

Not long ago, only a handful of brands could make better-for-you snacks that tasted as good as the artificially enhanced ones. Today, the healthy snack market has expanded significantly, introducing new competitors and intensifying rivalry across the industry.

Now, a confectionery giant long known for its chocolate is preparing to make one of the biggest moves yet by acquiring a well-known name in the snack space.

Mars to acquire Kellanova

Mars Inc. has received its final regulatory approval from the European Commission to proceed with its pending $36 billion acquisition of Kellanova, a spinoff of the original Kellogg Company. This approval was the last of 28 required to close the deal.

“We are excited to have received final regulatory approval for the pending acquisition of Kellanova,” said Mars CEO Poul Weihrauch in the press release. “Our focus now turns to welcoming Kellanova employees to Mars and creating an even more innovative global snacking business that delivers greater choice and quality to more consumers around the world.” 

Initially announced in August 2024, the acquisition is expected to be completed on December 11, 2025. Once finalized, it will be the largest food merger since the Kraft-Heinz deal in 2015, creating a snacking powerhouse.

The pairing appears to be a perfect match. Both companies are major Chicago-based multinational food manufacturers. Mars owns more than 50 brands, including Snickers, M&M’s, Twix, and Skittles. Kellanova, the Kellogg Company arm that includes global snacks and international cereals, brings iconic names such as Special K, Rice Krispies, Coco Pops, Pop-Tarts, Pringles, and Cheez-It.

“We’ve said all along that Mars Snacking and Kellanova will be better together, building on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth,” said Mars Global President of Mars Snacking Andrew Clarke in the press release.

As part of the agreement, Kellanova’s common stock will be delisted and cease trading on the New York Stock Exchange.

Mars received its final regulatory approvalto acquire Kellanova in a $36 billion merger deal.

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Rival companies enter the healthy snacking market

Mars’ merger will not only significantly expand its better-for-you snacking portfolio but also enable it to better compete against giant rivals including PepsiCo, Hershey, and Mondelēz, all of which have recently acquired healthy snack brands in response to evolving consumer preferences.

  • PepsiCo (PEP): Acquired the grain-free Mexican-American food brand Siete Food in January and the prebiotic soda brand Poppi in March 2025.
    Source: PepsiCo
  • Flower Foods (FLO): Purchased the clean-label snack brand Simple Mills in January 2025.
  • Hershey (HSY): Bought the organic snack company LesserEvil in April 2025, and has added at least four other better-for-you brands to its portfolio since 2018.

“Mars’ revenue base will increase to over $70 billion with the addition of Kellanova. This increases the company’s scale closer to or even greater than other global snacking peers such as PepsiCo and Mondelēz International,” said S&P Global in a research update.

The rising demand for healthy snacks

This shift in snacking habits reflects a broader transformation in consumer behavior. Health-conscious shoppers demand snacks with fewer calories, cleaner labels, and added functional benefits.

The global healthy snack market was valued at $95.61 billion in 2023 and is projected to reach $144.64 billion by 2030, growing at a 6.2% annual compound rate, according to Grand View Research‘s latest report.

North America currently leads the category, accounting for over 39% of global sales, primarily driven by a strong demand from U.S. consumers.

“In the past, healthy snacking called for compromising or having the discipline to choose a healthy snack,” said Innova Market Insights analysts. “Now healthy snacking is mainstream as a majority of U.S. consumers both snack and make mindful food choices. They expect snacks to be healthy and also to meet expectations for flavor and texture.”

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Industry experts say the Mars-Kellanova merger could be mutually beneficial, enabling both parties to leverage each other’s strengths.

“Mars Snacking has faced headwinds given their chocolate-heavy portfolio, and this acquisition helps bring in cash flow king brands that are less impacted,” said Clarkston Consulting Industry Experts Evan Shirley and Steve Rosenstock.

“At the same time, Kellanova has made significant headway in modernizing brands for healthy and on-the-go options.”

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