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 the investment bank William Blair.
Sales for products labeled as “high-protein” in grocery aisles, as well as frozen and refrigerated food departments, have risen at an estimated compound annual rate of more than 7% from 2021 to 2023. These sales reached over $30 billion in 2023, as per data from the analytics company Circana, William Blair analysts reported on July 12.
This surge in sales reflects growing consumer interest in “high-protein” products, particularly among millennials. Online search interest for “high protein” reached a five-year high in 2023, and the number of people discussing “high protein” increased 32% in the 12 months ending May 2023, according to the consumer intelligence company Brandwatch.
Millennials were the most engaged demographic, with about 52% of online mentions regarding “high protein” coming from individuals aged 25 to 40. The increased popularity of high-protein products is also driven by consumer interest in fitness and health.
According to Euromonitor International’s Health and Nutrition Survey, the primary reasons people follow high-protein diets 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, may 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 on GLP-1 treatment by 2035.
Some companies are already responding to these consumer behavior shifts. Nestle announced earlier this year that it is launching 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.