2025 Year in Review

As we close out 2025, I’m honoured to author this year’s NZMP™ Perspective “Year in Review.” As the Executive Vice President – Growth for Global Ingredients at Fonterra, stepping into this role fills me with both gratitude and excitement – gratitude for the dedication and resilience of our teams and partners worldwide, and excitement for the opportunities that lie ahead. This year has truly tested our industry’s agility and resolve, from navigating geopolitical tensions and climate events to adapting to rapidly evolving consumer preferences. Yet, it has also highlighted the power of collaboration, innovation, and a shared commitment to delivering exceptional value for our customers and farmers.

Throughout 2025, NZMP™ has remained steadfast in our mission: to transform volatility into opportunity, to build on our sustainability position, and to empower our partners with market-responsive solutions. Drawing on our position as one of the world’s largest dairy exporters, owned by thousands of New Zealand farming families, we’ve leveraged our global insights, robust supply chains, and technical expertise to help customers thrive in a dynamic landscape. As I reflect on the year’s highlights – from strategic partnerships and innovation sessions to sustainability initiatives and in-market engagements – I’m reminded that our greatest strength lies in our people. It’s the passion, expertise, and spirit of partnership that our teams bring every day that truly sets us apart.

2025 in Review: Four key features

1. Three consumer trends to track in 2025

Our February feature set the tone for the year by spotlighting the consumer trends shaping the future of food and beverages. Health and wellness continued to dominate, with consumers increasingly seeking high-protein, cleaner-label, and functional products that deliver real, tangible benefits. The demand for nutrient-rich, whole foods has reached new heights, and NZMP™ is strongly positioned to meet these needs through our grass-fed*, pasture-raised dairy ingredients.

This year, we witnessed high-protein yoghurt consumption in the US rise by 21% year-on-year¹, while global growth in the high-protein yoghurt** sector is projected at a 7.4% CAGR through 2029².  Our teams have worked hand-in-hand with customers to drive innovation in this space, from developing new protein-rich formulations to providing technical expertise and sustainability data that helps brands differentiate themselves. In my conversations across markets, I’ve heard time and again how our ability to combine premium nutrition, versatility, and great taste serves as a key differentiator for NZMP™ and our partners. This trend underscores the importance of staying attuned to consumer needs, and it’s been inspiring to see how our solutions are helping brands create products that resonate with health-conscious consumers.

2. Dairy’s next wave of innovation

April’s article delved into the next wave of dairy innovation, emphasising the critical role of agility and deep market insights in a landscape marked by rapid change. Geopolitical tensions, climate disruptions, shifting trade flows, and evolving consumer preferences have all contributed to unprecedented volatility in dairy supply chains. The challenge – and opportunity – lies in turning this volatility into value by remaining adaptable, leveraging advanced analytics, and maximising every drop of milk through targeted innovation.

At NZMP, we’ve invested heavily in R&D, digital platforms, and data-driven tools to enable brands to innovate faster and respond effectively to market shifts. For instance, our myNZMP™ Link platform provides customers with real-time access to ingredients and pricing, fostering transparency and flexibility. Meanwhile, our index- and market-based pricing solutions have empowered partners to manage price risks and seize new opportunities amid uncertainty. From my perspective, what truly distinguishes NZMP™ is our commitment to genuine partnership. We don’t just supply ingredients; we collaborate side by side with customers to co-create solutions, drawing on our global value chains to optimise outcomes for everyone involved. This approach has been key to our successes this year, such as expanding index-based pricing contracts and enhancing customer segmentation models to better target growth areas.

3. How the protein trend is reshaping food innovation

By June, the protein trend was reshaping food innovation on a global scale, as explored in our opinion piece. Consumers are prioritising products that support active, healthy lifestyles, making protein a central pillar of modern nutrition. NZMP’s leadership in protein and functional ingredients, bolstered by our sustainability credentials, has positioned us to help customers capture this surging demand.

Our collaborative teams – spanning sales, marketing, R&D, and technical experts – have been instrumental in delivering tailored value and forging strong partnerships. We’ve supported the explosive growth in high-protein yogurts, provided organic dairy solutions for premium applications, and driven innovation in high-potential sectors like sports and medical nutrition. One of the year’s standout highlights for me was witnessing our customers launch new products that not only meet nutritional needs but also reflect global sustainability trends and meet the expectations of environmentally conscious customers, resonating deeply with environmentally aware consumers. These achievements reflect the power of cross-functional collaboration and the need to stay ahead of market trends.

4. Top three trends driving the dairy industry

In October, we examined the top trends propelling the dairy industry forward, with sustainability emerging as a foundational strategic driver. Customers and consumers are demanding greater transparency, reduced carbon footprints, and products that align with their ethical values – pressures that extend across regional food and beverages (F&B) markets.

NZMP™ has continued to build on our sustainability position, from our regenerative agriculture practices on New Zealand farms to our decarbonisation efforts in manufacturing and operations. Our Climate Tools and Natural Dairy Claims equip customers with verifiable data and certifications to differentiate their offerings and can help support their own sustainability goals. A major milestone this year was the independent verification that our New Zealand milk meets the requirements under the New Zealand Grass-Fed AdministrativeDairy Standard, solidifying our reputation in grass-fed dairy. We’re also proud of collaborative initiatives with select partners that focus on fostering deeper strategic relationships. Sustainability isn’t just a checkbox for us; it’s integral to how we operate, helping us generate value while defending our business in a competitive landscape.

Disclaimers:

This article is for general information only and intended for business customers. It does not constitute medical, nutritional, or professional advice. The opinions expressed are those of the author and do not necessarily reflect those of Fonterra Co-operative Group Limited or its affiliates (Fonterra). No representation is made as to the accuracy or completeness of the content, and Fonterra disclaims all liability for any reliance placed on it. Content may change without notice.

* Grass-fed means cows mainly grazing on grass and crops in paddocks where they roam. Some farmers may include supplementary feed to help support cows’ nutrition. Visit NZMP.com/grass-fed for more information.​

** High protein yoghurt is defined as 15g+ per serving.