Global dairy giants shift towards nutrition, protein and functional products

Rabobank’s annual Global Dairy Top 20 report says the dairy industry is entering a period shaped by consolidation, specialisation and a stronger emphasis on creating value. The report, published on Wednesday, ranks the financial performance of the world’s largest dairy companies and co-operatives.

The combined turnover of the 20 companies in the ranking rose by 5.4% in 2025, reaching $267 billion. Lucas Fuess, a senior dairy analyst at RaboResearch, said that scale was becoming critically important for major international dairy businesses. He said the sector was likely to have fewer, larger companies controlling a greater share of global milk production.

Rabobank said consolidation was expected to continue as companies sought access to larger milk pools, stronger balance sheets and greater capacity for investment. Fuess said businesses combining scale with innovation, differentiation and products carrying more added value would be positioned for long-term success.

Lactalis was ranked as the world’s largest dairy company, with dairy turnover of more than $40 billion. Rabobank attributed part of the French group’s wider lead over Nestlé, which placed second, to acquisitions including Fonterra’s Mainland Group consumer business in Australia and Asia and General Mills’ yoghurt business in the United States.

Dairy Farmers of America ranked third. Its expansion included targeted investments in value-added processing, particularly in specialty cheese. Glanbia, which had appeared in the ranking in 2023, returned after being absent from the list a year later.

According to the report, growth across the global dairy industry is increasingly coming from higher-value categories such as nutrition, protein ingredients, specialty cheeses and functional dairy products. Companies are investing in these areas to strengthen their positions in particular markets and distinguish their offerings from competitors.

Fuess cited Fonterra’s growing emphasis on ingredients and foodservice as an example of a more specialised business model. He also pointed to category-focused companies such as ice-cream specialists Magnum and Froneri. Rabobank said future success would depend less on broad diversification and more on establishing leadership in selected segments.