Millennials and growing consumer interest in health improvement and weight loss are boosting the sales of high-protein packaged foods and beverages, according to a report by investment bank William Blair.
Sales of products labeled as “high-protein” in grocery aisles and refrigerated sections have increased at a compound annual rate of over 7% from 2021 to 2023, with total sales surpassing $30 billion in 2023, according to the report published on July 12. The data was provided by analytics company Circana.
Analysts from William Blair attribute this sales growth to increasing consumer interest in high-protein products, especially among millennials.
The report also indicated that online search interest for “high protein” reached a five-year peak in 2023, based on data from Brandwatch, a consumer intelligence company. The number of people discussing “high protein” saw a 32% increase in the 12 months ending in May 2023.
Millennials showed the most interest in high-protein diets, with 52% of all online mentions from individuals aged 25 to 40.
The rising popularity of high-protein products is also driven by general consumer interest in fitness and health. According to Euromonitor International’s Health and Nutrition Survey, the main reasons people follow a high-protein diet are to improve fitness and for overall health.
Additionally, individuals 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 can help minimize lean muscle mass loss, a potential side effect of these medications.
Morgan Stanley analysts predict the global market for GLP-1 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 already responding to these shifts in consumer behavior. Earlier this year, Nestle announced it would launch a line of high-protein frozen meals aimed at people using 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 stated in their report.