Consumer goods companies ramp up portfolio with protein-packed offerings

Bengaluru: Fast moving consumer goods (FMCG) companies are betting on one of the hottest nutrients in the market right now - protein, with legacy and new players launching products with both variety and creativity. The market for these healthier products is clearly on the rise with a conscious shift being seen in consumer behaviour. Experts who spoke to DH suggested that the organic and protein wave substantially increased after the Covid-19 pandemic.  

Amul recently launched varieties of protein offerings including lassi, kulfi, shake and even a whey protein powder. Biscuit-maker Britannia has its own chain of protein products including bread, biscuits and protein bars. Newer direct to consumer (D2C) brands aren’t behind in this race and are trying to take a slice of this shift in consumer behaviour with a lot of them climbing the sales chain with the help of quick commerce channels.

Startups such as The Health Factory, Yoga Bar and Open Secret among several others are gearing up to the game with innovative protein and wheat based product offerings in India. They are all looking to capture the lucrative demographic of urban millennials and GenZ who don’t mind paying a premium for such products.

The Indian Council of Medical Research (ICRM) has recommended an average adult’s protein consumption to be 60 grams per day, however, the average consumption touches only 37 grams a day for urban Indians, making it a suitable market for such products to flourish. 

“When you look at it from a data point of view, India has between 50-70% protein insufficiency, which is one of the largest globally. I think we have a huge opportunity to provide affordable plant-based proteins in that market,” said Aakash Shah, Co-founder and Chief Executive Officer, High Time Foods. 

A key factor into these products is the pricing - while several people are willing to spend extra for nutritious food, the likes of Amul have a protein rich lassi starting from Rs 20, also signalling a focus towards volume-led growth. 

“The demand is now well-segmented. There’s a clear and growing base of consumers seeking value packs—smaller, affordable sizes that make trial and accessibility easier, especially in urban mid-income households. At the same time, there’s a parallel market for premium, specialised protein formats—like plant-based protein powders. We see merit in building for both ends: accessible health and premium wellness,” said Gaurav Manchanda, Founder and Director, The Organic World. 

Not just that, investors are pumping money into this space, in a geography and diet that is protein deficient and provides a sustainable ingredient that replaces meat as they are seeing significant investor interest in D2C brands that are building credible, differentiated offerings around clean nutrition. 

However, the reach still remains restricted to the metro and tier-1 cities. Besides, brands are also exporting as the demand for healthier protein products is rising globally as well.

“Around 70% of my revenue till last financial year was from the offline market, 25% was from exports, and the remaining from e-commerce. However, we are targeting 60% of revenue from exports in the next three years as there is a lot of demand for these products. Tier-2,3 markets will take another three, five years for growth because affordability is the key at the end of the day,” said  Ajay Kangralkar, Founder, SkyRoots Ventures LLP.