Rising concern over ultra-processed foods (UPFs) is reshaping the foods landscape. This report examines the issue in detail, exploring where staple foods are most impacted by negative consumer sentiment, and – most importantly – which foods stand to benefit. This report also outlines UPF consumption across key markets, determines what the consumer thinks of the issue and examines what the future holds, identifying how food producers, brands and retailers can benefit from clean label demand.

Multi-layered, science-backed functionality is reshaping food and drink. Digestive health, energy and brain health claims drive innovation, but success now also depends on simplified, all-in-one nutrition and holistic benefits—such as hydration, sleep and longevity—delivered in credible, convenient formats. Brands that combine enjoyment with wellbeing, especially in snacks and portable options, will capture growth, while others risk losing relevance in a rapidly evolving market.

In 2025, dairy products and alternatives in India recorded substantial double-digit growth in retail current value terms. This expansion was predominantly driven by the country’s established dietary practices and the increasing consumer inclination towards health-oriented food choices. India’s position as the world’s largest milk producer plays a pivotal role in ensuring widespread availability and affordability of dairy products, thereby fostering a high frequency of consumption among Indian ho

Nestlé, the world’s largest food and beverage company, leads baby food globally and ranks third in dairy, in which it is the number one player in powder milk and coffee whiteners. The company is driving growth through nutrition and reformulation, as can be seen in its sugar and fat reduction efforts with Cerelac and Ninho Adulto, and via the roll-out of its Nan Sinergity formula, which contains probiotics and six HMOs. Enhanced functionality is a primary focus, as part of its wider strategy to m

The top 10 players per region command at least a fifth of their respective market shares. These companies are now looking ahead to the next phase of innovation as they currently face market volatilities and strive to marry nutrition with accessible indulgence. Strategies to gain global share is not only by being at the right place in terms of category and market, but also to tap into rising interest in intentional wellness, lifestage products and exploring opportunities in plant-based dairy.

Value sales of dairy products and alternatives rose in Mexico in 2025. Despite this positive result, the year was challenging for Mexico’s broader economic growth. The Bank of Mexico (Banxico) projected real GDP growth to slow to 0.6% in 2025, while inflation was expected to ease to 3.9% and the central bank interest rate was to remain at 8%. Moderate export activity and domestic demand offered some support, yet rising public debt and a narrowing fiscal deficit highlighted ongoing fiscal pressur

Retail value sales of dairy products and alternatives are set to rise in Tanzania in 2025. Historically, Tanzania has a low capacity for dairy production with only 30% of cows in the country being able to produce enough milk for processing. Thus, the dairy market is dominated by imported products. Many of the small holder farms in the country are also situated in remote areas and run by local herders without the means of mass-producing milk for processing. These milk vendors make up the informal

Value sales of dairy products and alternatives in Uganda rose in 2025, supported by strong government backing for the dairy industry and increased investment in processing and distribution infrastructure. The sector remains a cornerstone of Uganda’s Vision 2040 and National Development Plan III, both of which position dairy as a key pillar of agro-industrialisation. Growth has been fuelled by the government’s targeted initiatives, including the provision of cold chain facilities and milk collect

Overall, dairy products and alternatives in South Africa is projected to show robust retail current value and volume growth over 2025, driven by strong and rising demand across key categories, such as cheese, drinking milk products and yoghurt and sour milk products. These dairy items are considered household staples and they enjoy frequent repurchases, even in the face of rising prices across many dairy lines. However, it is important to consider the impact of price increases in complementary c

Danone continues to be the leading company in dairy products and alternatives globally, with a particular focus on yoghurt and milk formula. Sales continued to grow for Danone in 2025, with share losses in recent years having been influenced by the company’s withdrawal from the Russian market as well as the divestment of its premium organic dairy business in the US. Danone continues to place an emphasis on high-protein products as well as those fortified with nutrients promoting good gut health.

Value sales of dairy products and alternatives in Ethiopia rose in 2025, supported by strong underlying demand, population growth, and the increasing modernisation of Ethiopia’s food system. However, growth was constrained by persistent challenges around affordability, inflation, and supply disruptions. Prices of dairy products surged by 30-40% compared with the previous year, making many products unaffordable for the majority of households. Inflation in animal feed, coupled with foreign exchang

Value sales of dairy products and alternatives rose in 2025, supported by Ghana’s growing urban population, evolving dietary habits, and the expansion of its middle-income segment. Over the past decade, consumer exposure to international food culture through media and travel has reshaped preferences, making dairy a more prominent part of the everyday diet. Milk, yoghurt, butter, and cheese all saw steady uptake, reflecting both the influence of global consumption trends and the greater availabil

Value sales of dairy products and alternatives in Côte d’Ivoire rose in 2025, supported by improving economic conditions and a gradual decline in inflation, which eased from 4.4% in 2023 to 3.9% in 2024. Greater stability in household purchasing power encouraged spending on everyday staples, including milk, yoghurt, and baby food. The expansion of affordable pack sizes, such as Nestlé’s new 16g and 150g Nido sachets, made dairy products more accessible to a wider base of consumers, while rising

European dairy cooperative Arla Foods is an international company owned by more than 7,600 farmers from Denmark, Sweden, the UK, Germany and the Benelux countries. Currently the number one dairy player in Sweden, Denmark and the UK, Arla is set to expand its reach through a planned merger with DMK Group, Germany’s largest milk cooperative. Arla is also looking to acquire the dairy assets of Egypt-based Domty.

Dairy products and alternatives is expected to register double-digit current value growth in 2025, though constant value and volume growth is much more subdued, as inflation remains high. That being said, it is an improving picture, with inflation more stable than in 2024. Consumers have also adjusted their behaviour by focusing on affordable brands and smaller pack sizes, which mean a smaller financial outlay per purchase. Key products such as evaporated milk, powder milk and yoghurt are expect

Value sales of dairy products and alternatives in Angola rose in 2025, supported by favourable demographic and economic conditions. The country’s population continues to expand by around 3% per year, which naturally drives rising demand for dairy and dairy alternatives. Industrial production also recorded notable growth, with food industries contributing strongly as the government invests in diversification beyond oil. The dairy sector has benefited from this policy push, with increased incentiv

Retail sales of dairy products and alternatives in Morocco are expected to rise in current value terms in 2025, despite a series of ongoing challenges. One of the most pressing issues is the decline in national milk production, with a noticeable downward trends since 2020. Unfavourable climatic conditions, particularly drought, coupled with sharp increases in the cost of raw materials used in animal feed, have forced many breeders to cull their dairy herds in order to cover their losses, which i

Dairy and plant-based categories are evolving through multifunctionality, affordability and demographic shifts. This report explores how wellness-led innovation, life-stage nutrition, indulgent snacking and resilient supply strategies are reshaping global performance. Growth is being driven by added-value formats, clean label and tailored solutions across both emerging and mature markets.

Dairy products and alternatives in Vietnam experienced a significant improvement during 2025, buoyed by the country's strong economic recovery and a renewed consumer focus on health. The first half of the year saw a notable GDP increase, which fuelled consumer spending and encouraged industry-wide innovation. Leading dairy companies responded by launching a range of new products, including items with reduced sugar and added nutrients for immunity and gut health. While cow's milk, particularly sh

The Thai dairy sector is entering a period of transformation, shaped by regulatory pressures and shifting consumer priorities. The Thai Food and Drug Administration (FDA) has tightened the requirements for products qualifying for the “Healthier Choice” logo, with more stringent thresholds on sugar and fat content. This has pushed manufacturers to reformulate their offerings and launch healthier variants to remain competitive. In 2025, for example, Dutch Mill Co Ltd introduced a 4-in-1 drinking y

The volume challenges of recent years are becoming long-term problems for the food and beverage industry. Pressures such as high prices, slow population growth and GLP-1 usage mean that developed markets are on the verge of entering a period of consistent volume declines. There is still plenty of potential for growth, but it will not be in the ways that companies have historically operated.

The global FMCG market is projected to grow by 4.6% in current value terms to reach USD6.6 trillion. Growth is largely price led and financial concerns are weighing heavily on consumer behaviour given sustained cost-of-living pressures. Opportunities lie in emerging markets, health and wellness trends, and e-commerce. Key growth industries include soft drinks and beauty and personal care.

Dairy products and alternatives in Taiwan saw moderate current value growth in 2025 but stagnation in retail volume terms. This performance can be attributed to a combination of evolving social demographics, increased living costs, and ongoing inflationary pressures. In the wake of the COVID-19 pandemic, increased investment in international travel prompted many Taiwanese consumers to reassess their purchasing habits, with a trend towards premiumisation. Nevertheless, lower birth rates in Taiwan

Value sales of dairy products and alternatives in Croatia maintain a positive trajectory in 2025, with volume sales also showing small positive growth. This performance is supported by two dominant trends: the growing demand for health-focussed products, and the expansion of private label.