Millennials and a general consumer focus on improving health and losing weight are boosting sales of high-protein packaged food and beverage products, according to a new industry report by investment bank William Blair.
Sales for high-protein labeled products in grocery aisles and frozen and refrigerated food departments have grown at an estimated compound annual rate of more than 7% from 2021 to 2023, reaching over $30 billion in 2023, as reported on July 12. The investment bank used data from analytics company Circana.
Analysts at William Blair attribute this sales surge to an increasing consumer interest in high-protein products, particularly among millennials.
Online search interest for “high protein” hit a five-year high in 2023, based on information from consumer intelligence company Brandwatch. The number of people discussing “high protein” also rose by 32% in the 12 months leading up to May 2023.
Millennials showed the most marked interest in high-protein diets, accounting for about 52% of all online mentions about “high protein” from individuals aged 25 to 40.
The report emphasized that the rise in popularity of high-protein products is also tied to growing consumer interest in fitness and health.
According to Euromonitor International’s Health and Nutrition Survey, the primary reasons people followed a high-protein diet were to “improve my fitness” and “makes me healthier.”
The report also noted that those using GLP-1 weight loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound are likely to increase their protein intake. High-protein diets could help reduce lean muscle mass loss, a side effect of these medications.
Morgan Stanley analysts project that the global market for GLP-1 weight loss drugs will reach $105 billion by 2030, with around 9% of the U.S. population on GLP-1 treatments by 2035.
Some companies are already responding to these shifts in consumer behaviors.
Earlier this year, Nestle announced the launch of a high-protein frozen meals line targeting those on GLP-1 drugs.
“In essence, it appears consumers increasingly want to live fit and be well, perceive that increasing the amount of protein in their diets is means to these ends, and are voting with their pocketbooks for higher-protein foods and beverages to help them on their journeys,” William Blair analysts concluded in their report.