Why dairy giants see growth in meal replacement brands

Three M&As in four months — Danone acquiring Huel, Lactalis buying Protein Works and Nestlé snapping up Yfood. As DairyReporter reports, what links all three is a portfolio of ‘complete nutrition’ solutions — and the growing influence of GLP-1 weight management is reshaping the opportunity.

Weight management’s growing influence

Consumers on GLP-1 medications have complex dietary needs: suppressed appetite, smaller portions, lower alcohol intake — and a heightened need for protein to avoid muscle loss. Academic research confirms meal replacement products support weight loss while preserving metabolic health. The global market is growing at a high single-digit rate and is estimated to reach $9–15bn over the next decade. Europe is the more dynamic marketplace; North America is more mature but remains a leading destination where differentiation will matter more.

How meal replacements can support Danone, Nestlé and Lactalis’ growth

Danone posted its weakest North American result since 2019 in Q3 2025. CEO Antoine de Saint-Affrique told investors the company needs to go “further than protein or specialised nutrition” and elevate its broader portfolio. Huel offers a route into adjacent categories where Danone has a marginal presence.

For Nestlé, North America underperformed group sales in FY2025, with a portfolio heavily skewed toward coffee and pet care. The company launched Vital Pursuit for GLP-1 consumers and is well-positioned to expand. Yfood adds international potential beyond Europe.

For Lactalis — now the second-largest North American yogurt player following the acquisition of General Mills’ yogurt portfolio — the opportunity is active nutrition expansion. Protein Works spans several European markets; the Middle East and Africa are next. 

The plan: combine Lactalis’ supply chain with Protein Works’ D2C digital infrastructure to bypass traditional retail and achieve higher margins.

Ultimately, all three are tapping into the same shift: a move toward more functional, convenient and nutritionally complete food formats as consumers rethink not just what they eat, but how and why they eat it.

Source: DairyReporter