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Millennials and 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 both grocery aisles and frozen and refrigerated food departments have risen at an estimated compound annual rate of more than 7% from 2021 to 2023, William Blair analysts wrote in a report published July 12. Sales for these products reached over $30 billion in 2023. The investment bank cited data from the analytics company Circana.
William Blair analysts said this growth in sales tracks growing consumer interest in “high-protein” products, especially among millennials.
Online search interest for “high protein” reached a five-year high in 2023, according to the report, which cited the consumer intelligence company Brandwatch. Additionally, the number of people talking about “high protein” increased 32% in the 12 months ending May 2023.
Interest in high-protein diets was most pronounced among millennials. About 52% of all online mentions regarding “high protein” were from people aged between 25 to 40.
The bank’s report said that the growing popularity of high protein products was also being driven by consumer interest in fitness and health.
According to a Euromonitor International’s Health and Nutrition Survey, the top reasons people said they were following a high-protein diet was “to improve my fitness” and “makes me healthier.”
The bank also noted that people trying to lose weight via GLP-1 weight loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound are also likely to increase their intake of protein. High-protein diets could help minimize lean muscle mass loss, a side-effect of these medications.
Morgan Stanley analysts anticipate the global market for these drugs will reach $105 billion by 2030, with about 9% of the U.S. population being on a GLP-1 treatment by 2035.
Some companies are already adapting to these consumer behavior shifts.
Earlier this year, Nestle announced it was launching a line of high-protein frozen meals to target people on 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 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 wrote in their report.