The 20 largest dairy companies increased combined revenue by 5.4% in 2025

The combined revenue of the 20 largest dairy companies worldwide increased by 5.4% in US-dollar terms during 2025, according to an annual report by Rabobank circulated in the region by the Federación Nacional de Productores de Leche, or Fedeleche. The result represented a recovery in revenue for the leading corporate group after several years affected by macroeconomic volatility.

The report linked the improvement to firm international prices for butterfat, industrial cheese and specialised protein ingredients. Lactalis, the French dairy group, retained the top position in the global ranking and widened its lead through organic expansion and acquisitions. Other companies among the major players included Dairy Farmers of America, Danone, Fonterra, Arla Foods, Nestlé and FrieslandCampina.

Yili and Mengniu, two Chinese dairy groups, also remained in the global top ten. Their volumes were described as stable, although domestic consumption growth in China was more moderate. Across the sector, companies adjusted their business portfolios and adopted a more selective approach to mergers and acquisitions.

Rather than concentrating investment on liquid milk, a traditional category characterised in the report by low margins and strong retail pressure, multinational dairy groups directed capital towards segments with higher premiums. These included medical nutrition, advanced infant formula, whey protein isolates and concentrates, and products intended for food-service customers.

Financial results were also affected by currency movements and the availability of raw milk. The strength of the US dollar against the euro and the New Zealand dollar distorted accounting conversions, while slower production growth in European and Oceanian dairy regions increased competition among processors for milk supplies. The report said that some of the resulting pressure was reflected in higher prices paid to farmers at origin.

Rabobank’s assessment also described a demanding regulatory environment, including stricter rules on emissions and animal welfare, alongside uncertainty in international trade flows. It identified energy efficiency, digitalisation of the cold chain and longer-term supply agreements with dairy farms as issues considered relevant to the leading companies’ operations.