The 8 fastest growing small businesses in food, restaurants and beverages for 2026

The 8 fastest growing small businesses in food, restaurants and beverages for 2026

From social media baked goods to functional foods, here’s what’s being served this year.

Kim Mercado
By Kim Mercado
Contributing Writer, Business and Insurance
Dec 24, 2025
1 min read
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From functional foods to global flavors, the U.S. food and beverage landscape is shifting fast,  driven by wellness, cultural exploration and changing consumer expectations. For entrepreneurs, these changes aren’t just trends; they’re opportunities to build businesses and fill a niche.

Across restaurants, packaged goods, catering and specialty retail, small businesses are leading the charge. NEXT compiled a list of the fastest-growing restaurants, food and beverage business types for 2026.

1. Functional foods and personalized nutrition take center stage

Functional foods continue to gain momentum as more people look for everyday meals and snacks that support their health. Gut-healthy kombucha, probiotic chips, adaptogenic drinks and nutrient-dense smoothie kits are now part of many shoppers’ routines — and small food businesses are helping drive that shift.

A subset of this trend is personalized nutrition (also called precision nutrition), which tailors a diet to an individual’s unique health needs or goals. This could be customized meal plans, tailored nutrition supplements, or products for specific conditions like diabetes or low energy.

If you run a restaurant or café, you can tap into the functional food trend with a health-focused menu. For example, create build-your-own bowls and salads let diners tailor meals to their goals, from low-glycemic to gut-friendly. You can even partner with nutritionists to develop dishes aimed at goals like energy boosts, weight management or digestive support.

Recent insights from the Specialty Food Association point to ongoing functional food opportunities in customizable snacks, AI-supported nutrition apps and foods designed around specific wellness benefits — areas where small businesses can innovate quickly.

2. Meal and snack businesses supporting GLP-1 consumers

With roughly one in eight American adults now using GLP-1 medications like Wegovy, Ozempic and Mounjaro, the way people eat is shifting — and fast. As appetite decreases and nutrition needs change, demand is rising for foods that support weight management and blood-sugar control. For small businesses, this is one of the clearest new food opportunities.

Major brands have already moved. Nestlé launched its Vital Pursuit line of high-protein, GLP-1 friendly meals, and Conagra rolled out an “On Track” badge on Healthy Choice meals to signal high-protein options for this audience.

Restaurants feel the impact, too. Sixty-three percent of diners say they’re spending less when eating out because their medication reduces appetite. Adding more high-protein dishes, fiber-rich sides and flexible portion sizes can help restaurants meet these changing preferences.

Small food businesses can go further by offering low-glycemic meal kits, portion-controlled snacks and delivery programs built around slow-digesting, blood-sugar-friendly ingredients. As trend analyst Kara Nielsen says “While probiotic and prebiotic fiber has been trending in food and drink for years, as with sodas like Ollipop and Poppi, some indie brands with stated fiber benefits are taking advantage of the rise in weight loss drugs to propose their products as a more natural alternative.”

High-protein snacks and portion-controlled packaged foods continue to perform well — and because GLP-1 users tend to spend less on groceries overall, retailers may want to rethink merchandising or feature more targeted grab-and-go options.

3. Global flavors go mainstream

Global flavors continue to shape what Americans are cooking, buying and craving. Diners want bolder, more layered tastes — often inspired by Korean, Japanese, Indian and Southeast Asian cuisines — and small food businesses are in a perfect position to lead the way.

The “swicy” trend (sweet + spicy) is still going strong, driven by the rise of international chili varieties. As Nielsen says “[New chiles are] testing palates but also increasing consumer understanding and appreciation for the wide world of chile peppers.” People are looking beyond traditional hot sauce and reaching for gochugaru, Calabrian chilis, aji amarillo and Sichuan peppercorns.

And it’s not just spice. A wave of global pantry staples is entering the mainstream. Indian curries, miso, gochujang, kimchi, furikake, black sesame, matcha, tamarind, and yuzu are showing up in snacks, sauces, pastries and beverages. The National Restaurant Association’s 2026 What’s Hot report suggests wellness is fueling this shift as consumers look to boost flavor without sacrificing nutrition. 

This means there’s an opportunity for business owners to take familiar formats and make them stand out with international flavors — a low-barrier way to offer something new and memorable.

These ingredients bring comfort for some diners and discovery for others, which is where creative entrepreneurs thrive. Think Korean-inspired condiments, matcha beverages, Japanese-style savory snacks or Indian-spiced meal kits.

4. Bakery tourism and the hunt for viral pastries

A new kind of food tourism is taking off led by Gen Z and Millennials: bakery tourism. Instead of sightseeing and visiting bars, many travelers now plan trips — or at least weekend detours — around hard-to-find pastries and the bakeries that make them. Social platforms have turned standout baked goods into destinations, inspiring long lines, limited drops and pilgrimages for the perfect bite.

Some Latino bakeries draw crowds with conchas, while Scandinavian shops pull in visitors with princess cakes and imported sweets. Asian bakeries continue to dominate the viral landscape with the viral Japanese cream sandwich, Korean tissue bread and other inventive pastries. Even luxury fashion has taken notice — Louis Vuitton released a taiyaki-inspired (bungeoppang) bag charm, showing just how deeply these treats have saturated pop culture.

Trying the viral Japanese cream sandwiches in Tokyo! 📍

This surge in bakery tourism also ties into a broader premiumization trend where consumers are willing to pay more for products that feel luxurious or one-of-a-kind. In food and beverage — both foodservice and CPG — premiumization is about elevating a product’s perceived worth through quality, storytelling or unique experiences. Circana reports that premium brands saw a 3% volume increase in 2025 versus 2024. Even with higher price points, consumers will “trade down” in other categories so they can still splurge on favorite premium items.

This mentality aligns with results from a Dawn Foods survey: 61% of Gen Z consumers are willing to pay a slight premium for more sustainable sweet baked goods that deliver on flavor and visual impact. Consumers, especially younger ones, are willing to pay more for something that feels special.

For small bakery owners, a distinctive signature item can become both a premium offering and a destination in itself, drawing locals and travelers looking for their next standout bite.

5. Sourdough is on the rise — again

Sourdough may have surged during the pandemic, but it’s still going strong, and evolving. What began as a home-baking trend has grown into a full bakery movement, with sourdough showing up in everything from classic boules to bagels, croissants and other pastries. 

Part of sourdough’s staying power comes from its digestive appeal. Slow fermentation can help break down gluten and phytic acid, and many shoppers associate sourdough with improved gut health and a return to traditional methods. The category even saw a cultural bump when Taylor Swift shared her sourdough obsession on the New Heights podcast, sending starter tutorials, recipe swapping and artisan loaves (funfetti sourdough, anyone?) trending once again.

For small bakeries and food entrepreneurs, sourdough offers an opportunity to leverage a trendy product. Signature loaves, breakfast pastries and ready-to-bake kits all fit the moment. Workshops and starter kits also resonate with customers who want hands-on, wellness-minded food experiences. With interest in gut-friendly, minimally processed foods rising, sourdough remains a strong opportunity for business owners looking to differentiate on craft and quality.

6. Spotlight on zero-proof drinks

Interest in non-alcoholic drinking keeps climbing as more people identify as “sober curious” and take part in Dry January, Sober October or simply choose to drink less year-round. Social media is still pushing the movement forward, and studies show Gen Z drinks less than previous generations — a shift that’s reshaping bar menus, retail shelves and even at-home entertaining.

As wellness becomes a bigger part of dining culture, alcohol-free options are no longer an afterthought. Complex mocktails and craft zero-proof spirits have become staples because guests want something that feels celebratory, not like a consolation prize.

Restaurants, hotels and even airlines are expanding their zero-proof menus with alcohol-free beer, wine, and fresh-ingredient mocktails. DoorDash reports strong demand: 80% of U.S. customers say they’ve ordered low- or no-alcohol drinks alongside alcohol — yet 32% still say menus don’t offer enough choices.

This shift is also giving rise to new business models: Zero-proof bottle shops and sober bars are opening nationwide to serve guests who want the social experience without the hangover. Make the drink feel special, and people will show up for it — alcohol or not.

7. Sustainability and upcycled foods reshape the market

Sustainability and local sourcing remain two of the trends identified in the National Restaurant Association’s 2026 What’s Hot report. The organization says these priorities continue to influence where customers choose to eat. Almost half of consumers say they trust independent businesses more than large corporations to offer genuinely sustainable products, giving small producers a significant edge.

Interest in reducing food waste continues to grow. Large producers like Del Monte are developing upcycled product lines, and major retailers — including Waitrose, Fortnum & Mason and Kroger — are stocking more upcycled snacks and pantry staples, helping introduce the category to a wider audience. As big brands normalize these products, small producers have an opportunity to stand out with creative formulations, transparent sourcing and compelling “rescued food” stories.

Sustainability and local sourcing have opened other opportunities. Urban microfarms, for instance, help small business owners grow fresh produce in small spaces to sell directly to local restaurants, cafes or farmers markets.

8. Online catering becomes a small business powerhouse

A fast-growing opportunity for small food businesses is e-commerce catering — catering services managed entirely online. No phone tag, no on-site staff and no complicated setup. And it’s not slowing down: the online catering market is projected to grow at a 7.9% CAGR through 2035, which signals long-term demand.

A big driver? Hybrid work and employee wellness. Many workplaces now cater lunch weekly, and ezCater reports that over 53% of corporate buyers plan to increase their catering budgets. Companies are using food to bring people back together — and back into the office — which gives small businesses a scalable way to get in front of corporate clients.

Online catering also removes a lot of the traditional barriers that made catering feel out of reach. Customers can serve offices, hybrid teams and offsite events without hiring a serving crew or investing in front-of-house operations.

For most small operators, drop-off catering is the easiest point of entry: Packaged meals delivered straight to the office, no labor required. Corporate orders offer the next level of opportunity — recurring weekly or monthly meals with larger average order sizes. And there’s plenty of room to stand out with food and beverage specialization: Plant-based menus, global flavors or dietary-specific boxes that big caterers struggle to personalize at scale.

How NEXT helps food and beverage business owners

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We’ll ask a few questions about your business and give you a quote. You can select your coverage options and buy your policy in about 10 minutes. Your certificate of insurance is available after purchase, and you can access your policy 24/7 via web or mobile app.

If you have questions, our licensed, U.S.-based insurance professionals are available to help.

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Kim Mercado
About the author

Kim Mercado is a small business insurance writer at NEXT, producing content for small business owners. She enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has also contributed content to Salesforce, Samsara and Google.

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