Top 20 dairy companies 2021 according to Rabobank

Rabobank has released the highly anticipated Global Dairy Top 20 2021 Annual Report.

The rating has changed: Lactalis, thanks to mergers and acquisitions, overtook Nestle and took first place.

Rabobank believes that Lactalis' focus on organic growth, as well as a focused global M&A strategy, has propelled the company from ninth place in 2000 with $4.8 billion in revenue to dominance in 2021 with $23 billion in revenue, i.e., show growth of more than 370% since the turn of the century. Since 2010, Lactalis has grown through approximately 60 deals, expanding its global presence in the Middle East, Africa and the Americas. Rabobank predicts that Lactalis' pending acquisition of Kraft Heinz's natural cheese business and Groupe Bel Royal Bel Leerdammer, Bel Italia, Bel Deutschland and Bel Shostka Ukraine, which have a combined annual turnover of approximately $2.5 billion, will strengthen the company's leadership in the rankings in next year.

Nestlé sold its US ice cream business to Froneri in 2019, and Nestlé's estimated dairy-related turnover in 2020 was $20.8 billion, up 60% from the turn of the century.

The largest dairy cooperative in the US, Dairy Farmers of America (DFA), maintains third place. The co-op displaced Danone from third place in 2019 after acquiring Dean Foods. DFA and Danone reported a decline in dairy sales in 2020. DFA sold some assets due to the acquisition of Dean Foods, while Danone faced some difficulties in the infant formula market.

Rabobank notes that, like Nestlé, Danone's portfolio continues to evolve, with a focus on acquisitions in alternative dairy products.

The combined turnover of the Global Dairy Top 20 fell 0.1% in DOLLAR terms after rising 1.8% in the previous year. M&A activity slowed in 2020, with approximately 80 deals announced compared to 105 the previous year. However, activity picked up in 2021, with more than 50 deals announced by the middle of the year.

The biggest rise in the top 20 came from Kraft Heinz, which moved up three places to 15th overall, but Rabobank predicts it will leave the top 20 next year.

In its report, Rabobank notes that 2020 has been an unprecedented year in which dairy companies have faced significant challenges. However, in general, according to Rabobank analysts, with the onset of the worldwide pandemic, the situation in the dairy sector turned out to be better than many feared.

What to expect next year? Rabobank predicts that investment activity will remain robust in popular categories including specialty cheeses, innovative dairy ingredients such as human MILK oligosaccharides, dairy alternatives ranging from plant-based, cell-based and fermented to healthy lifestyle products . Rabobank also forecasts the likelihood of business acquisitions in related sectors such as logistics and inventory management.

Going forward, by 2030, consumers will be able to purchase plant- and cell-based dairy alternatives at competitive prices, Rabobank said. Rabobank believes that non-GMO consumers are more likely to opt for plant-based alternatives, but due to their nutrient content, dairy products will be a staple. However, Rabobank warns that it's critical that the dairy industry be part of a global carbon reduction effort that resonates with climate-sensitive consumers. This will allow food manufacturers and catering establishments not to exclude dairy products from their list of products and from their menus.

The full report can be downloaded here.

PioneerProduct based on dairyreporter.com