Millennials and the general consumer focus on improving health and losing weight are boosting sales of high-protein packaged food and beverages, according to a new report by investment bank William Blair.
Sales for products labeled as “high-protein” in grocery aisles and in frozen and refrigerated food sections have increased at an annual rate of more than 7% from 2021 to 2023, reaching over $30 billion in 2023, the report noted. This data, sourced from analytics company Circana, highlights the growing consumer interest in such products, especially among millennials.
The report also referenced data from consumer intelligence company Brandwatch, showing that online search interest for “high protein” hit a five-year high in 2023. The number of people discussing “high protein” rose 32% in the twelve months ending May 2023, with 52% of these mentions coming from individuals aged 25 to 40.
The popularity of high-protein products is fueled by a broader interest in fitness and health. According to Euromonitor International’s Health and Nutrition Survey, the main reasons people are following high-protein diets are to improve fitness and enhance overall health.
Additionally, the report indicated that people using GLP-1 weight loss drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, are likely to increase their protein intake to minimize lean muscle mass loss, a side effect of these medications. Morgan Stanley analysts predict the global market for these drugs will reach $105 billion by 2030, with about 9% of the U.S. population using a GLP-1 treatment by 2035.
Some companies are responding to these changing consumer behaviors. Earlier this year, Nestlé announced the launch of a line of high-protein frozen meals aimed at those taking GLP-1 drugs.
William Blair analysts concluded that consumers increasingly want to lead fit and healthy lives and believe that increasing protein intake is a way to achieve these goals. They are showing their preference through higher spending on high-protein foods and beverages.