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        Dairy Products Manufacturing Industry Profile

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        Excerpt from Dairy Products Manufacturing Industry Profile

        Companies in this industry manufacture dairy-based products from raw and processed milk, along with dairy substitutes. Major companies include Dairy Farmers of America, Dean Foods, and Land O'Lakes (all based in the US), as well as Danone and Groupe Lactalis (France); Fonterra (New Zealand); FrieslandCampina (the Netherlands); Meiji (Japan); and Nestlé (Switzerland).

        More than 850 million metric tons of milk are produced annually, according to the Food and Agriculture Organization of the United Nations. India, Pakistan, the European Union, the US, New Zealand, and Brazil are seeing the most growth in world milk production. Most increased dairy trade is expected to be met by supplies from New Zealand, Mexico, the EU, and Argentina. Demand for milk and milk products is growing in developing nations in East and Southeast Asia due to rising incomes, population growth, and urbanization.

        The US dairy products manufacturing industry includes about 1,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $117 billion.

        COMPETITIVE LANDSCAPE

        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.

        Ongoing consolidation has helped large manufacturers cut costs and operate more efficiently. Companies ...

         
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