Millennials and the general consumer interest in improving health and losing weight are driving up sales of high-protein packaged food and beverage products, according to a new industry report by the investment bank William Blair.
Sales for products labeled as “high-protein” in both grocery aisles and frozen and refrigerated food departments have increased at an estimated compound annual rate of more than 7% from 2021 to 2023, reaching over $30 billion in 2023. This data, cited by William Blair analysts, comes from the analytics company Circana.
William Blair analysts highlight that this sales growth aligns with growing consumer interest in “high-protein” products, especially among millennials.
Online search interest for “high protein” hit a five-year high in 2023, as reported by the consumer intelligence company Brandwatch. Additionally, the number of people discussing “high protein” surged 32% in the 12 months ending May 2023.
This interest in high-protein diets is most prominent among millennials, with about 52% of all online mentions regarding “high protein” coming from individuals aged 25 to 40.
The report also notes that the increasing popularity of high-protein products is driven by consumer interest in fitness and health.
According to Euromonitor International’s Health and Nutrition Survey, the primary reasons people are following a high-protein diet are to “improve my fitness” and “make me healthier.”
The report further mentions that individuals using GLP-1 weight loss drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, are also likely to increase their protein intake. High-protein diets could help minimize lean muscle mass loss, a potential side effect of these medications.
Morgan Stanley analysts project that the global market for these drugs will reach $105 billion by 2030, with about 9% of the U.S. population on a GLP-1 treatment by 2035.
Some companies are adapting to these shifts in consumer behavior. Earlier this year, Nestle announced the launch of a line of high-protein frozen meals aimed at individuals 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 a 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 wrote in their report.