Protein boom sparks deals, partnerships across F&B space

A surge in consumer demand for protein in everyday staples has spurred a range of collaborations as food and beverage makers and cafe chains launch new products and close supply deals amid continued global shortage and a four-fold increase in whey protein prices.

Tiger Global-backed tea café chain Chaayos has partnered with Slurrp Farm maker Wholsum Foods to launch teas based on the latter’s protein brand Mille, while the India unit of Tim Hortons has inked a partnership with Amul to launch protein coffees. Rival Tata Starbucks has teamed up with snacking brand SuperYou to introduce protein cold foam.

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“What many years back was a supplement taken by gym goers is now a daily habit of millions of Indians,” said Kannan Sitaram, managing partner at early-stage venture capital firm Fireside Ventures, which has invested in ITC-backed Yoga Bar, nutrition and wellness consumables maker Kapiva and Sweet Karam Coffee.

“The success of GLP-1 medications (for diabetes and weight loss) in India is another factor driving protein consumption as that reduces muscle mass and leads to a sense of weakness,” Sitaram added.

Researcher IMARC valued India’s total protein market at close to Rs 15,300 crore in 2025 and has projected it to reach Rs 21,000 crore by 2031 despite prices of whey protein surging amid global supply disruptions.

The spurt in demand is also prompting food companies to invest in new products and manufacturing capacity.

Dairy company Parag Milk Foods entered the protein-snacking category this month, while recently listed dairy maker Milky Mist last fortnight commissioned a Rs 40-crore plant in Tamil Nadu to manufacture Skyr and Greek yoghurt.

“High-protein nutrition is moving from a niche preference to an increasingly mainstream consumption trend,” said K Rathnam, chief executive officer of Milky Mist Dairy Food.

Nitin Saluja, cofounder of Chaayos, said the initial response for its Mille-based protein drink has been “very encouraging.”

There is a rise in acquisitions and deals as well.

“There are at least four digital-first protein brand deals currently in the market, as large established players are scouting for tuck-in acquisitions to meet demand for everyday protein staples,” an executive at a large private equity firm said on the condition of anonymity.

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In February, pharmaceuticals company USV acquired a 79% stake in Wellbeing Nutrition for Rs 1,583 crore in an all-cash deal, with Hindustan Unilever exiting its investment in the nutrition products startup.

HUL, on its part, completed a 100% acquisition of plant-based clean-label consumer wellness brand Oziva this year through parent company Zywie. Marico too has acquired plant-based protein wellness label Cosmix.

Specialty food and nutraceutical ingredients startup Arboreal Bioinnovations recently raised Rs 230 crore in a round co-led by EAAA Alternatives and Omnivore, while Pune-based protein start-up Provilac raised $14 million from Panthera Growth Partners.