Millennials and a general consumer interest in improving health and losing weight are significantly driving up sales of high-protein packaged food and beverages, according to a new industry report by the investment bank William Blair.
Sales of products labeled as “high-protein” in both grocery stores and frozen and refrigerated food sections have increased at an estimated compound annual rate of over 7% from 2021 to 2023, as noted by William Blair analysts in a report published on July 12. These sales hit over $30 billion in 2023, based on data from the analytics company Circana.
This rise in sales aligns with a growing consumer interest in “high-protein” products, particularly among millennials. According to the report, online search interest for “high protein” reached a five-year high in 2023, with mentions of “high protein” increasing by 32% in the 12 months ending May 2023, as per insights from consumer intelligence company Brandwatch. Notably, 52% of online mentions about “high protein” came from individuals aged between 25 to 40.
The increasing popularity of high-protein products is also being propelled by consumer interest in fitness and health. Data from Euromonitor International’s Health and Nutrition Survey indicate that the primary reasons people follow a high-protein diet are “to improve my fitness” and “makes me healthier.”
Additionally, individuals using GLP-1 weight loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound might also boost their protein intake to prevent lean muscle mass loss, a potential side-effect of these medications. Morgan Stanley analysts predict the global market for these drugs will reach $105 billion by 2030, with approximately 9% of the U.S. population on a GLP-1 treatment by 2035.
In response to these consumer trends, some companies are adjusting their product offerings. For instance, Nestle announced earlier this year that it is launching a line of high-protein frozen meals aimed at individuals on GLP-1 medications.
Overall, William Blair analysts stated in their report that consumers increasingly aim to live healthier lives, believing that increasing their protein intake helps achieve these goals, and they are willing to spend more on high-protein foods and beverages to support their health and fitness journeys.