Dairy, snacking firms power new launches with protein punch

Companies cited greater demand for such products in urban areas and consumer awareness as driving growth for protein-enriched products in India. Indians, in general, face high protein deficiency. A very small percentage of the population consumes adequate protein in their daily diets. Children and women are particularly vulnerable to protein malnutrition.

The entry of larger players is set to drive down prices and improve access to such products, said companies.

Mother Dairy recently launched Pro Milk in Delhi-NCR, a protein-enriched milk in pouch format. It offers 30% more protein than regular milk and is priced at ₹70 per litre, slightly higher than their full-cream milk at ₹68 per litre.

According to the company, nearly 70-80% of Indians fail to meet their daily protein requirements despite the varied forms of protein products available in the market. Protein deficiency in India is driving demand for high-protein foods, which are available in different forms and formats. The company also plans to expand its protein range with Greek yogurt and high-protein paneer.

“Our studies indicate that 70% to 80% of Indian consumers consume less protein in their daily diet. This is more pronounced among vegetarians. This issue has been identified by various companies, and they are doing their bit to build the category,” Manish Bandlish, managing director, Mother Dairy, said in an interview with Mint.

Bandlish said urban Indian consumers are becoming more aware of their dietary requirements and are seeking value-added products. “Pro milk will give you around 40 grams of more protein; it will help democratize the overall protein market,” he added.

Change in consumption habits

Between 2012 and 2024, India’s consumption patterns have also undergone significant shifts.

Expenditure on essential items such as cereals has decreased dramatically, from 21% to 26% of food-related spending in 2012 to just 13% to 15% in 2024. According to a February report by Deloitte on India’s changing consumption habits, this decline has been accompanied by increased spending on protein-rich foods such as eggs, fish and meat, alongside processed foods, dining out and ordering in.

Parag Milk Foods announced a broader portfolio of protein-enriched foods that expanded beyond its existing sports nutrition range, which included muscle-building protein products.

The company, which markets packaged dairy under brands such as Gowardhan ghee, Go cheese, and Pride of Cows milk, will now sell low-fat and high-protein paneer, flavoured Greek yoghurt (containing 8g of protein), protein bars and snacks.

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The market for protein-rich products is expanding rapidly, the company said, explaining its entry into the market.

“Consumers are becoming more conscious—they want to know the source of the product, etc. People want to know carb content. Seeing this latest change in consumers, we have launched the range. Protein deficiency is a key challenge in India, so offering food that is protein-rich is an opportunity,” Akshali Shah, executive director of Parag Milk Food, said in an interview with Mint.

The move comes amid shifting dietary preferences in India.

More urban consumers are moving towards healthier food and beverage options. Products such as kombucha, cold-pressed juices, plant-based milk, baked chips, protein bars, and organic nuts are gaining traction for combining nutrition and taste. According to the Deloitte report, consumers increasingly seek functional foods with added health benefits, such as fortified cereals, probiotics, and protein-rich snacks.

Amul joins protein bandwagon

Gujarat Co-operative Milk Marketing Federation Ltd, which sells products under the Amul brand, has been launching a range of protein beverages, including lassi, milkshakes (priced at ₹40 for 180 ml), along with milk with greater protein content, and protein paneer.

Bengaluru-based Sproutlife Foods, which started selling energy bars, has expanded its range to include protein biscuits, shakes, and chocolates.

Founder Suhasini Sampath said the market for protein-rich foods has quickly expanded over the past decade, moving away from products mainly consumed by or marketed to gym goers. The company recently launched protein powders.

“Protein powders are now accepted not only by gym goers but also regular consumers. Everyone understands protein deficiency in the country, even regular consumers who don’t work out or are not building muscles want to consume protein. The addressable market size has become much larger,” she said. In January 2023, hotels-to-cigarette maker ITC Ltd announced an investment in the company.

Sampath said the entry of more players, such as Amul and Mother Dairy, is set to make protein more mainstream. “The large players getting into it will help expand the category. As it stands today—it will grow north of 20%, making it already quite big,” she said.