First, it was Danone’s deal for Huel; then, Lactalis and Nestlé moved to acquire the UK’s Protein Works and Germany’s Yfood, respectively.
Three M&As announced within four months and involving companies in closely-adjacent spaces suggests a pattern – a strategic expansion or strengthening in areas where the market demands swift adaptation.
What Huel, Protein Works and Yfood have in common is a portfolio of ‘complete nutrition’ solutions – products that pack essential nutrients, such as protein, fibre, and vitamins, and the energy of an entire meal, in convenient formats.
Danone’s deal for Huel is hoped to “unlock new opportunities”; Lactalis anticipates Protein Works’ know-how to enable it to “create products that respond to changing consumer expectations”, and Nestlé’s Yfood move supports the Swiss major’s ambition to use nutrition as long-term growth lever.
But what’s driving interest in ‘complete nutrition’, ‘smart food’, and related concepts?
Weight management’s growing influence
While mainstream shoppers that favour on-the-go nutrition and health-conscious consumers have fuelled demand for meal replacement products over the years, the category is entering a new growth phase in the age of weight management.
Consumers on GLP-1 medications have complex dietary needs. Food and beverage cravings are suppressed, leading to smaller portions and lower alcohol intake, while avoiding muscle loss has sent protein demand to new heights.
Academic research also suggests meal replacement products are conducive to weight loss. A 90-day randomised controlled trial found that people using such products lost body weight and fat while preserving metabolic health at the same time (though further research with more diverse cohorts and longer trial periods is encouraged to better understand these products’ impact on health).
Business-wise, entering this space is a smart bet. The global meal replacement market is growing at a high single-digit rate and is estimated to be valued between $9bn to $15bn over the next decade, according to market research companies. Manufacturers are responding: an Innova Market Insights trends report shows that the most new product launches happened in Europe in 2025, with North America in second place.
In North America, these products – with the most common formats being powders and RTDs – are increasingly used to support weight management.
But the North American market is also more mature than Europe. Product releases have been relatively stable in the past year according to Innova, and the rate of new launches had only marginally increased over the past several years. This makes Europe the more dynamic marketplace, but North America remains a leading if more crowded destination, where differentiation will matter more in the coming years.
Both Europe and North America are key markets for the three majors mentioned above – but each player is facing distinct challenges that complete nutrition products could solve.
How meal replacements can support Danone, Nestlé and Lactalis’ growth
Nestlé and Danone reported softer growth in North America in recent quarters.
Danone posted its weakest print in Q3 2025 since 2019 due to underperformance in plant-based alternatives, coffee creamer distribution issues, and capacity constraints in protein yogurt. Q4 2025 was also soft, and the region posted a 4% decline in reported sales for the fiscal year, although underlying growth remained positive at 2%, pointing to resilient demand but also real headwinds.
“Winning in this market means going further than protein or specialised nutrition,” CEO Antoine de Saint-Affrique told investors. “It means elevating the rest of our portfolio from creamers to non‑protein, from yogurt to plant‑based, and showing up there with the same strengths and relevance that we do today in high-protein or [specialised nutrition].”
Huel has a clear place in this strategy, offering a route into adjacent categories where Danone has a more marginal presence.
For Nestlé, North America underperformed against group sales in FY2025, with leadership pointing to ‘cautious consumer sentiment’ and macro pressures rather than structural weaknesses. Still, the Swiss major’s portfolio in the region heavily skews toward coffee and pet care – making its nutrition capabilities all the more important to unlocking growth in the region.
Nestlé was first to market with a range for GLP-1 consumers through Vital Pursuit, and remains well-positioned to expand in this segment. Yfood is also ripe for international expansion, offering the Swiss major a new lever to compete with across both Europe and North America.
For Lactalis, the opportunity is different. The French multinational recently became the second largest North American yogurt player by acquiring General Mills’ yogurt portfolio last year. In an age of growing protein consumption, that’s already a major portfolio boost – but the company isn’t stopping there.
On the global stage, Lactalis is keen to expand into active nutrition, with Protein Works seen as a key lever to achieving growth across categories, meal occasions and geographies.
The UK-based company operates across several European markets, including Germany, France, Ireland, and Italy – and now, expansion into the Middle East and Africa is on the cards. The plan is to opt for a more direct market approach by combining Lactalis’ supply chain network with Protein Works D2C digital infrastructure to bypass traditional retail channels and achieve higher margins.
But ultimately, all three majors are tapping into the same shift: a move towards more functional, convenient and nutritionally-complete food formats as consumers rethink not just what they eat, but how and why they eat it.
