The dairy industry is on the brink of transformative changes, according to Rabobank’s latest Global Dairy Top 20 report. With anticipated mergers and acquisitions (M&A) set to reshape the competitive landscape, dairy manufacturers are urged to prepare for a new era of market dynamics.
The report indicates a modest growth trajectory, with combined turnover among the top companies increasing by 0.6% in 2024 and projected to rise by 0.5% in 2025. However, the report also highlights that significant shifts are expected in 2026 due to impending mergers and acquisitions (M&A) that could reshape the rankings and competitive dynamics.
Key findings from the report
The report serves as a vital resource for understanding the financial performance of the world’s leading dairy companies.
This year, eight companies have swapped positions within the rankings, illustrating the intense competition and strategic repositioning that characterise the industry. Such movements reflect not only changes in market share but also shifts in consumer preferences and operational efficiencies.
Despite the overall growth, the report underscores the challenges faced by dairy manufacturers. The projected 0.5% growth in 2025 is relatively modest, suggesting that while the market remains stable, manufacturers must innovate and adapt to maintain profitability.
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Factors influencing this growth include:
Consumer demand: A growing consumer preference for health-conscious and premium dairy products is reshaping purchasing patterns. Manufacturers are urged to respond by diversifying their product offerings to include functional dairy items, organic options and plant-based alternatives.
Economic pressures: Fluctuations in global economic conditions, including inflation and supply chain disruptions, continue to impact production costs and pricing strategies for dairy manufacturers.
Top 10 dairy companies in 2025
- Lactalis (France) – $31.9 billion
Lactalis continues to solidify its position as the largest global dairy company, expanding its operations through strategic acquisitions. Noteworthy acquisitions include Nestlé’s coffee creamer brand Cremora in South Africa and General Mills’ US yogurt business, which is expected to add $1.5 billion to net sales. This also includes the recent purchase of Fonterra’s consumer and associated businesses for $2.3 billion.
- Nestlé (Switzerland) – $23.9 billion
NestlĂ© faces challenges in its dairy segment, particularly after spinning off Froneri, which now operates independently. The company’s dairy sales have plateaued around €22 billion for three consecutive years, with declines in turnover across multiple regions, except for slight growth in China and Taiwan.
- Dairy Farmers of America (DFA) (United States) – $23.0 billion
DFA retains its third-place position, with revenues slightly lower than its record high in 2022. The cooperative’s performance is heavily influenced by US milk prices, which averaged $22.55 per hundredweight in 2024. Despite fluctuations, DFA’s strong market presence ensures its continued ranking among the top dairy companies.
- Danone (France) – $20.7 billion
Danone has made divestments to streamline its operations, including exiting the Russian market and selling its majority stake in Horizon Organic. However, its dairy segment performed well on a like-for-like basis, achieving 1.1% price growth and 2.9% volume growth, resulting in a 4.0% increase in turnover. Danone’s focus on health-oriented products is expected to bolster its market position moving forward.
- Yili (China) – $15.8 billion
Yili remains a key player despite facing challenges in the Chinese market, including weakened consumer demand and oversupply issues. The company has reported a 12% drop in revenue from its liquid milk division, although its powder and dairy products segment saw an 8% increase, driven by strong performances in adult milk powder and cheese.
- Arla Foods (Denmark) – $15.0 billion
Arla experienced a modest revenue increase of 0.8% in 2024, primarily due to its acquisition of Volac’s whey nutrition division. The cooperative’s stable growth reflects its effective management strategies, although it faces competition from other European dairy cooperatives. This year, Arla announced that it would merge with DMK Group, creating Europe’s largest dairy cooperative with a combined pro forma revenue of €19 billion. We can expect to see the new formed group rising up the ranks.
- Fonterra (New Zealand) – $14.7 billion
Fonterra’s drop in ranking reflects its decision to divest consumer and associated businesses to focus on core foodservice and ingredients. This pivot aims to maximise long-term shareholder value for its farmers. However, the divestment is expected to impact Fonterra’s revenue significantly, potentially dropping it to tenth place next year.
- FrieslandCampina (Netherlands) – $14.0 billion
FrieslandCampina’s performance remained stable, although it experienced a slight decline of 0.5% in turnover. The cooperative is actively seeking ways to enhance its market position amid challenges related to member retention and milk supply. FrieslandCampina’s ongoing efforts to innovate and adapt to market changes will be crucial for its future success.
- Saputo (Canada) – $13.9 billion
Saputo led all companies in revenue growth, achieving an 8.4% increase in 2024. The company’s strong performance is attributed to improved operations across all divisions, except in Argentina, where currency struggles impacted results. Saputo’s focus on efficiency and cost-saving measures has positioned it well for continued growth.
- Mengniu (China) – $12.3 billion
Mengniu’s revenue has declined due to a challenging operating environment in China, marked by oversupply and declining prices. The company has faced double-digit drops across its liquid milk, ice cream, and milk powder divisions. Despite these challenges, Mengniu continues to focus on maintaining its market share and adapting to consumer preferences.
Global Dairy Top 20 (2025)
(Turnover 2024, estimates in USD & EUR billions)
| Rank 2025 | Rank 2024 | Company | Country HQ | USD (bn) | EUR (bn) | Notes |
|---|---|---|---|---|---|---|
| 1 | 1 | Lactalis | France | 31.9 | 28.9 | – |
| 2 | 2 | Nestlé | Switzerland | 23.9 | 21.6 | – |
| 3 | 3 | Dairy Farmers of America | US | 23.0 | 20.8 | – |
| 4 | 4 | Danone | France | 20.7 | 18.8 | – |
| 5 | 5 | Yili | China | 15.8 | 14.3 | – |
| 6 â–˛ | 7 | Arla Foods | Denmark | 15.0 | 13.6 | Climbed 1 place |
| 7 â–Ľ | 6 | Fonterra | New Zealand | 14.7 | 13.3 | Dropped 1 place |
| 8 | 8 | FrieslandCampina | Netherlands | 14.0 | 12.7 | – |
| 9 â–˛ | 10 | Saputo | Canada | 13.9 | 12.6 | Climbed 1 place |
| 10 â–Ľ | 9 | Mengniu | China | 12.3 | 11.2 | Dropped 1 place |
| 11 | 11 | Unilever | UK | 9.0 | 8.1 | – |
| 12 â–˛ | 13 | Savencia | France | 7.7 | 7.0 | Climbed 1 place |
| 13 â–Ľ | 12 | Schreiber Foods | US | 7.5 | 7.0 | Dropped 1 place |
| 14 | 14 | GCMMF (Amul) | India | 7.3 | 6.6 | Stable |
| 15 | 15 | Müller | Luxembourg | 6.9 | 6.2 | – |
| 16 | 16 | Sodiaal | France | 6.6 | 6.0 | – |
| 17 | 17 | Agropur | Canada | 6.4 | 5.8 | – |
| 18 â–˛ | 19 | Froneri | UK | 6.0 | 5.4 | Climbed 1 place |
| 19 â–Ľ | 18 | DMK | Germany | 5.5 | 5.0 | Dropped 1 place |
| 20 | 20 | Grupo Lala | Mexico | ~5.0 | ~4.6 | Estimated |
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