Arla’s Report 2025 Pushed by Components and Protein Demand

Abstract

• Excessive‑worth protein and whey components are offering resilience and performing as the primary engine of progress for the co-op.
• Protein demand surged in 2025, fuelled by curiosity in well being, sports activities vitamin, and weight administration, strengthening each branded and B2B efficiency.
• Branded progress was uneven, however excessive‑protein merchandise and Starbucks RTD espresso stood out as clear shopper favourites.
• Comfort‑led classes gained traction, with chilled RTD espresso rising as a serious contributor to Arla’s branded momentum.

Arla Meals posted record-high income in 2025 in opposition to a backdrop of a risky shopper and commodity market surroundings.

The co-op’s income jumped 9.4% 12 months over 12 months, with internet revenue additionally up 3.5%.

This efficiency was pushed by Arla’s components arm, which recorded income progress of over 40% within the interval via protein ingredient gross sales and the mixing of Volac’s whey processing enterprise.

Branded income – which accounts for practically half of Arla’s group whole – rose too, however this was largely price- relatively than volume-led as customers have been deterred by excessive costs in some classes, notably premium butter (Lurpak volumes declined 3.3%).

In the meantime, Arla’s high-protein manufacturers reminiscent of Arla Protein and Skyr, together with Starbucks chilled espresso merchandise, led quantity progress with double-digit will increase.

Starbucks leads Arla’s branded quantity progress

Branded merchandise are the only largest contributor to Arla’s whole income, exceeding €7bn (up 6.9%) in 2025.

Volumes have been largely flat at +0.2% versus 3.7% in 2024, nonetheless, with Puck and significantly Starbucks the one shiny spots in Arla’s international portfolio.

Starbucks chilled espresso merchandise – which Arla manufactures and distributes in a number of international markets below a long-term licence with the worldwide espresso chain – led branded quantity progress with a ~14% progress.

This was pushed largely by the Starbucks Protein Drink with Espresso , which was rolled out throughout EMEA in 2025 after first launching within the UK in mid-2024.

Starbucks-branded RTD espresso holds a market-leading share in chilled espresso in EMEA since 2018. In 2025, Arla carried out distribution and channel optimisations, which additional contributed to Europe RTD quantity will increase of 15.7% within the interval.

Right here’s how every of Arla’s international manufacturers fared in 2025.

Arla

• 2025 income: ~€4bn (2024: €3.7bn)
• YoY income progress: +7.7%
• Quantity‑pushed income progress: –1.0%
• Notes: Robust efficiency from Arla Protein (+19.5%) and Arla Skyr (+17.8%) with Arla Professional foodservice up 7.5%.

Lurpak

• 2025 income: €903m (2024: €837m)
• YoY income progress: +7.8%
• Quantity‑pushed income progress: –3.3%
• Notes: Europe quantity –7.6%, Worldwide +4.5%

Puck

• 2025 income: €528m (2024: €514m)
• YoY income progress: +2.6%
• Quantity‑pushed income progress: +6.7%
• Notes: Robust momentum in MENA (+6.3%); progress in cooking and spreadables classes.

Castello

• 2025 income: €248m (2024: €245m)
• YoY income progress: +1.2%
• Quantity‑pushed income progress: +0.3%
• Notes: Robust progress in Denmark (+21.8%), declines in Germany (–11.8%); shift from mould to yellow cheese.

Starbucks chilled RTD espresso

• Income: Not specified
• Quantity‑pushed income progress: +13.9%
• Notes: Strongest progress amongst international manufacturers; Europe +15.7%, Worldwide +9.1%, pushed by Starbucks Protein Drink with Espresso and improved distribution.

Protein stays a number one drive for Arla

Protein demand was central to Arla’s efficiency in 2025 and stays a vital piece within the co-op’s future progress technique.

Based on Arla CEO Peder Tuborgh, demand for protein is being accelerated by demographic adjustments globally in addition to shopper tendencies reminiscent of weight administration. He mentioned in a press convention that the co-op is investing in its protein processing services “greater than ever”.

The processing plant acquired from Volac in Wales is central to the co-op’s ambitions. Arla produces whey protein isolate (WPI) there in addition to whey fats focus and lactose. The plant is ready to be expanded within the coming years because the co-op goals to ramp up its WPI gross sales considerably over the subsequent few years.

The general purpose is to capitalise on demand from the well being and sports activities vitamin sectors, that are rising at a excessive single-digit CAGR in keeping with the dairy main.

Report-setting efficiency unlikely to be repeated

Regardless of attaining file income in 2025, Arla has cooled off expectations that this consequence can be repeated.

The principle cause for that is the worldwide milk oversupply state of affairs, which has been placing strain on international dairy commodity costs since mid-2025 and into 2026.

Nonetheless, Arla’s group income for 2026 is predicted to be within the vary of €13.3 to 14.1bn, with internet revenue share in the identical goal vary of two.8% to three.2%.

On the brilliant aspect, decrease costs ought to trickle right down to branded dairy over the course of this 12 months and raise the co-op’s branded volumes, the co-op hopes.

Snap verdict: B2B focus pays off

Arla’s components division has pushed the largest positive aspects to its FY2025 income, enabling the co-op to publish record-setting ends in a turbulent interval dominated by commodity market fluctuations and lukewarm shopper sentiment.

The co-op’s components enterprise operated at full steam to ship a 43.1% progress backed up by a 29% enhance in protein ingredient gross sales. The added processing capability within the UK additionally contributed to this income enhance, highlighting the advantages of investing on this area.

General, the technique has had a two-fold impression by performing as a important income stream in addition to a buffer to retail and commodity market challenges.

Arla’s efficiency is the newest case examine into why different dairy majors have pivoted in direction of B2B providers and ingredient provide.

In 2025, Fonterra and Kerry Group have been among the many dairy majors to strengthen their concentrate on ingredient gross sales whereas shedding non-core elements of their companies.

With demand for protein presently outstripping provide, these firms have significant headroom for future progress.