Protein drinks muscle up to enter mainstream market

New Delhi: Protein drinks and foods have moved beyond gyms to turn mainstream, with dozens of brands and startups disrupting the market with entry-level packs priced as low as ₹10 and upwards and mass distribution.

"Earlier only people going to gyms had protein shakes. Now, companies are creating everyday foods which are protein-rich such as protein shots, bars, snacks, confectionery and pre-mixes. While 45% of the market is performance protein aimed at regular gym goers, the remaining 55% is lifestyle protein which is seeing the highest growth. This is the space where brands are gaining scale and traction," said VS Kannan Sitaram, co-founder and partner at Fireside Ventures, which has invested in protein-based startups Yogabar and Wellbeing Nutrition.

Top executives said the ₹16,000 crore market is exploding because of flavours and formats as companies try to get first-mover advantage, triggering investor interest or acquisitions, such as ITC acquiring Yogabar, HUL investing in Oziva and Zydus Wellness acquiring Naturell, the owner of Max Protein.

Amul said its high-protein range of about a dozen products including shakes, buttermilk and whey, currently available only on its own D2C platform, has seen 100% growth since launch two years back.

"The demand take-off surprised us too; we're now rapidly scaling up capacity and will start to retail soon on e-commerce and quick commerce, followed by modern trade and general trade," said Jayen Mehta, managing director at Amul. With affordable price points of ₹25 and upwards, Mehta said the company "is democratising protein consumption into everyday diets."

Recent investments in protein startups include ChrysCapital and Motilal Oswal Alternates investing in omnichannel nutrition platform HealthKart, European investment firm Sofina investing in The Whole Truth (TWT) and SuperYou raising funding from Zerodha-backed venture firm Rainmatter.

SuperYou, co-founded Kishore Biyani-backed Think9 Consumer Technologies and actor Ranveer Singh, has started with bars and wafers and will move into biscuits, powders and breakfast cereals later, Nikunj Biyani, co-founder of SuperYou, said. "The category is growing rapidly as awareness has increased. We are leveraging it by making products that deliver protein while keeping it affordable."

Executives said taste, which used to be a deterrent to mass consumption of protein-based foods, is being worked upon by companies with flavours and formats.

D2C plant-based proteins maker Earthful, which announced a fund raise of ₹5 crore on Thursday, said in a statement that over the last 12 months Earthful has seen 3x growth and that it will infuse the funds to develop three-four new products every quarter. The company is selling coffee mocha protein flavours, milk mix powders with plant-based proteins.

Srinivasan Namala, founder of Porus Labs which led the funding, said in a statement: "Over the next five-seven years, the nutraceutical market in India will experience significant growth, driven by a rising number of health-conscious Indians."

NielsenIQ said in a November report that smart snacking in India is growing 1.2 times faster than traditional snacks. Sonika Gupta, executive director, customer success - India at NielsenIQ, said that one in five snacks now has a health connotation in India, with health-conscious consumption growth being fuelled by innovations in small, affordable and nutrient-rich products.

Right to Protein, an awareness platform backed by US Soybean Export Council (USSEC), ran a campaign for World Protein Day on February 27, which it said was to 'educate people to make informed and sustainable protein choices.'