Companies in this industry manufacture dairy-based products from raw and processed milk, along with dairy substitutes. Major companies include Dean Foods, Dairy Farmers of America, and Land O'Lakes (all based in the US), as well as Danone and Groupe Lactalis (France); Fonterra Co-operative Group (New Zealand); Koninklijke FrieslandCampina (the Netherlands); Meiji (Japan); and Nestlé (Switzerland).
Competition in the dairy product manufacturing industry is evolving as small upstart companies have introduced new higher-margin products that are taking market share from major producers. This trend, which is occurring throughout the food manufacturing sector, is pressuring industry leaders to acquire rivals and create new brand extensions that are more in line with consumers’ current tastes.
Products, Operations & Technology
Major product segments include cheese (about 40% of US industry revenue), fluid milk and milk products (35%), and dry and condensed milk products (20%). Other products include ice cream, other frozen desserts, and butter. Besides regular milk, milk products include buttermilk, cream, cottage cheese, yogurt, and dairy substitutes, such as soy milk.