Millennials and a 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 investment bank William Blair.
Sales of products labeled as “high-protein” in 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, the report states. Data from analytics company Circana supports these findings.
William Blair analysts attribute this growth to a rising consumer interest in “high-protein” products, particularly among millennials. Online searches for “high protein” hit a five-year high in 2023, with the number of people discussing “high protein” increasing by 32% in the 12 months ending May 2023, according to Brandwatch.
About 52% of all online mentions regarding “high protein” came from individuals aged 25 to 40, highlighting a notable interest among millennials. The report connects this trend to a broader consumer focus on fitness and health.
According to Euromonitor International’s Health and Nutrition Survey, the primary reasons for following a high-protein diet were “to improve fitness” and “to be healthier.”
The rising popularity of GLP-1 weight loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound may also drive higher protein consumption, as high-protein diets help 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 around 9% of the U.S. population on a GLP-1 treatment by 2035.
Companies are starting to respond to these consumer behavior shifts. Nestle, for example, announced earlier this year that it is introducing a line of high-protein frozen meals targeted at people on GLP-1 drugs.
Overall, the report concludes that consumers increasingly want to live fit, be well, and view increasing protein intake as a means to achieve these goals, driving sales of higher-protein foods and beverages.