Summary
- Unilever enters 2026 with execution in sharp focus after reshaping its portfolio and leadership.
- Key priorities include potential M&A, pricing resets, and increased brand investment across core categories.
- Performance in North America and managing Home Care competition will be critical to sustaining momentum.
If Unilever laid the groundwork for a new strategic direction in 2025, then 2026 will be the year when execution will come into sharp focus.
The CPG major replaced its CEO and separated its ice cream business from its core portfolio in 2025 with the aim to accelerate growth through its profit-making beauty, wellness and personal care brands.
But to achieve its objectives, the company may need to make further portfolio shifts and ramp up investment while managing pricing and margin pressures.
Here’s what could be on the cards for the CPG major in 2026.
More M&As
CEO Fernando Fernandez wants around 66% of Unilever’s sales to come from beauty, wellness and personal care in the future, versus ~52% today. But analysts predict this may only be achievable through more major acquisitions or divestments.
After its exit from ice cream, the CPG major also sold snacking business Graze in December. Still, the company continues to own several major food brands, including Knorr and Hellmann’s, which showed resilience and a steady global performance.
But the food portfolio generated less than a quarter of Unilever’s group sales in FY24 and, without ice cream, will become even less relevant to the group’s strategy, even if it offers valuable diversification.
Unilever may also look to bolster its portfolio through acquisitions, as it has done successfully in recent years through Liquid I.V. (2020) and Nutrafol (2022) among others.
Avoiding US slowdown
North America accounts for around 22% of Unilever’s group turnover and delivered above-average sales and volume growth in FY24, making it one of the most important regions for the CPG major.
Unilever has a strong presence in beauty and personal care in North America as well as through hydration brand Liquid I.V. and hair supplement marque Nutrafol.
Broker Jefferies estimates the two businesses have driven the most growth for Unilever in North America recently, making them crucial to the group’s long-term ambitions.
Liquid I.V. in particular has achieved top powdered hydration brand status in the US – but in an increasingly crowded category, the brand’s growth has declined, and sales – plateaued in 2025, according to Nielsen IQ scan data.
Unilever will be keen to highlight its US success stories, but the CPG major may need to consider strategies to keep momentum going – or risk underperformance in a key market.
Increased marketing spend
Unilever wants to grow sales by more than 2% a year – but that won’t happen without ramping up marketing efforts, analysts think.
The CPG major has already increased marketing spend by around €1.2bn ($1.4bn) on average over the last two financial years and again by around €400m ($472m) in the last year.
But broker Jefferies predicts spending could increase to €500m ($572m) in the coming year to properly support Unilever’s growth ambitions.
Growing competition in Home Care
Unilever’s home care business will be increasingly challenged by competitors, particularly P&G, with prices and margins likely coming under pressure this year.
The company is likely to revise its pricing strategy in Latin America, where volumes dropped after the group raised prices due to foreign exchange pressures.
Europe may also require a pricing intervention, given its flat to low growth in recent periods.
FY25: Steady expectations
Unilever will publish its annual results on February 12, 2026.
Analysts expect FY25 to deliver 1.7% organic growth and a modest increase in operating margin as the company aims to restore volumes, reset prices and potentially, reshape its portfolio even further in 2026.
Overall, the year ahead is shaping up as a testy period for Unilever as it chases its growth ambitions in an increasingly challenging consumer environment.
