Millennials and a general consumer focus on health and weight loss are propelling the sales of high-protein packaged foods and beverages, according to a recent industry report by investment bank William Blair.
Sales for products labeled “high-protein” in grocery aisles, and in frozen and refrigerated food departments, have grown at an estimated compound annual rate of more than 7% from 2021 to 2023. This resulted in sales surpassing $30 billion in 2023, as highlighted in the report published on July 12, which cited data from analytics company Circana.
William Blair analysts attributed this sales surge to an increasing consumer interest in high-protein products, notably among millennials. Online search interest for “high protein” hit a five-year peak in 2023, according to the consumer intelligence firm Brandwatch, with online conversations about “high protein” growing by 32% in the 12 months ending May 2023.
Millennials drive much of this interest, with about 52% of all online mentions about “high protein” coming from individuals aged 25 to 40. The report also suggested that rising interest in fitness and health is bolstering the popularity of high-protein products.
According to Euromonitor International’s Health and Nutrition Survey, the top motives for following a high-protein diet include enhancing fitness and achieving better health.
Additionally, the report indicated that those using GLP-1 weight loss drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, might boost their protein intake. High-protein diets could potentially minimize the loss of lean muscle mass, a known side-effect of these medications.
Morgan Stanley analysts project that the global market for GLP-1 drugs will hit $105 billion by 2030, with about 9% of the U.S. population expected to be on a GLP-1 treatment by 2035.
Businesses are already responding to these shifts in consumer behavior. Earlier this year, Nestle announced a new line of high-protein frozen meals aimed at individuals using GLP-1 drugs.
“Consumers increasingly want to live fit and be well, perceiving that adding more protein to their diets can help achieve these goals, and they are demonstrating their preferences by spending more on high-protein foods and beverages,” wrote William Blair analysts in the report.