Why it matters:
- More and more Americans are seeking to increase their protein intake, including 59% of Gen Z consumers, according to Bain & Co.
- Among the keys to the growing interest in protein-enriched products is their increasing appeal to women, who now outpace men in their demand for this nutrient, Bain & Co. reported.
- Both startups and established food company giants are tapping into the trend with innovative new products that span across food categories.
High-protein food products are in the spotlight as consumers have increasingly embraced this nutrient for its muscle-building and satiating qualities.
Forty-four percent of U.S. consumers report that they are actively trying to increase their protein intake, according to Bain & Co. research, including 59% of Gen Z and 51% of millennial consumers.
The growing interest in protein is “fueling sales growth for products with protein claims compared to those without such claims across the store,” said food and beverage research firm Circana in a recent report. Startup companies such as Magic Spoon and David are seeking to capitalize on this trend by introducing new, high-protein products, while established food industry giants, including Starbucks, are also getting on board.
One of the significant factors driving the explosion of high-protein products has been the surge in interest among women, according to the Bain & Co. report. Globally, 39% of women said they are seeking to consume more protein, compared with 33% of men.
“Protein boosts aren’t just a ‘gym bro’ thing,” the report concludes. “Women are most likely to want more.”
Magic Spoon co-founder: Protein trend is here to stay
The value of protein as a nutrient has long been one of the truisms that nutritionists have agreed on, said Gabi Lewis, Co-Founder of Magic Spoon, which makes high-protein, low-sugar breakfast cereals and granola.
“While fat has been a villain and then a superfood, grains have gone in and out of style, and plant-based has come and gone, high protein has stood the test of time, and we don’t see it going away,” he said.
Magic Spoon differentiates itself from other high-protein food products with its holistic approach to nutrition. The company’s cereals include between 11 and 14 grams of protein per serving, with no sugar, and they are also gluten and grain free. The company’s newly launched granola line, meanwhile, includes 13 grams of protein and 7 grams of fiber per serving and has no added sugar. The new Magic Spoon treats line also has 11 grams of protein and no added sugar.
“All of Magic Spoon's products have been developed to have the same taste and texture of your favorite breakfast classics but with upgraded nutritional profiles,” said Lewis.
Lewis said the company has a broad target audience, including consumers seeking to build muscle with high-protein, low-fat diets, as well as the surge in consumers seeking to lose weight by taking GLP-1 drugs.
Protein boosts aren’t just a ‘gym bro’ thing,' the report concludes. 'Women are most likely to want more.'
Magic Spoon launched as an online-only brand in 2019 but rolled out in Target stores nationwide in 2022. The company’s products are currently available in more than 22,000 retail stores, including Whole Foods Market, Walmart, and Costco. Brick-and-mortar retail is now the fastest-growing segment of the company’s business, and Lewis said the company sees ample room for growth in retail stores.
“Our company’s DNA is still digital,” he said. “We now see ourselves as an omnichannel business focused on our consumer wherever and however they like to shop.”
After launching its breakfast cereal line, Magic Spoon recognized that its approach to blending “taste, health, and fun” could be applied to other product categories, Lewis said.
“We’ve benefited from having a loyal base of consumers who have added these new products, as well as bringing in new consumers into the brand with new formats,” he said.
Looking ahead, Magic Spoon is focused on expanding its reach to more consumers, and “meeting them wherever they get their breakfast foods from,” said Lewis.
Magic Spoon has received financial backing from some of the leading investors in the consumer packaged goods (CPG) space, including HighPost, Siddhi Capital, Coefficient Capital, and the Collaborative Fund. The company has also received backing from several celebrity investors, including Nick Jonas, Questlove, and Amy Schumer.
[Read more: Mushrooms Emerge as Growth Opportunity Across the Grocery Landscape]
David founder: Striving for maximum protein with diverse product lines from snack bars to frozen fish that ‘fill a gap in the market’
Peter Rahal, Co-Founder and CEO of David, is seeking to offer protein on the go in the form of hand-held protein bars and more. He previously launched RXBAR in 2013, focusing on simple, natural ingredients that aligned with the Paleo diet, which was gaining popularity at the time.
He sold the company to Kellogg Co. in 2017 for $600 million, and five years later launched David after noticing “a new gap in the market,” he said.
“I had spent a lot of time diving into nutrition research and kept coming back to three simple, science-backed ideas: prioritize protein, avoid excess calories, and cut out added sugar,” Rahal said. “These became the core principles behind David.”
David offers several protein bars with flavors that include chocolate chip cookie dough, peanut butter chocolate crunch, red velvet, blueberry pie, and others. The company also recently branched out into a completely new category, although still in the high-protein, low-calorie framework: frozen cod filets.
David seeks to differentiate itself from competitors in the protein bar category with its high protein-to-calorie ratio, providing 28 grams of protein in each bar and 150 calories. The bars are also gluten free and have 0 grams of sugar.
The company appeals to a diverse customer base, divided evenly between men and women, which Rahal said sets the company apart in a product segment that has historically skewed toward men.
“Some of our customers are focused on building strength and performance, while others use our bars to support weight loss, using them as a convenient way to get high-quality protein while staying in a calorie deficit,” he said.
David’s e-commerce sales through Amazon and its direct-to-consumer website currently outpace brick-and-mortar retail, but its presence in physical stores is expanding quickly and is soon expected to surpass the online channel, said Rahal, who had built a strong network of retail contacts during his time at RXBAR. David launched its retail presence with small, independent grocery stores in New York and has since expanded into larger retail chains, including The Vitamin Shoppe and Wegmans Food Markets. It is now available in more than 5,000 retail stores nationwide.
By launching in smaller retail accounts, David was able to gather feedback quickly and iterate its formulations.
“That hands-on insight has helped shape not just our current product but also guide future innovation,” said Rahal.
He also credited the company’s presence on TikTok with helping expand the brand’s consumer awareness, generate direct-to-consumer sales, and boost its B2B business, including placement in gyms, offices, and vending machines.
As David seeks to gain a larger retail presence in national chains, it has also diversified its product portfolio in an unexpected direction: from shelf-stable nutrition bars to frozen seafood. Rahal said the company was searching for another high-protein food and discovered cod.
“While the cod is less convenient and comes in only one flavor, we wanted to make sure we offered our consumers the highest protein-to-calorie ratio food possible,” he said.
The company worked with Kyle Lee, a fisherman with Alaskan Salmon Co., to source the wild-caught cod, which is flash frozen on-site and offered in packs of four raw, 6-ounce filets.
“The logistics came down to preparing and sourcing the proper packaging and configuring shipping options to ensure that we deliver the cod fully frozen and at peak quality to people’s homes,” said Rahal.
Coming soon from the company is a new line of protein bars that Rahal described as “more decadent,” with 20 grams of protein and 150 calories, while maintaining 0 grams of sugar.
“This new bar … will be more candylike in nature and will be a great product for the person who’s new to protein,” he said.
Rahal said the company is on pace to reach $180 million in sales this year, and it has been profitable since its launch in September of last year.
[Read more: Global Flavor Trends Drive New Sweet and Salty Snack Innovations]
Starbucks expands high-protein ingredients and menu items
Starbucks has long catered to health-conscious consumers with a variety of better-for-you food offerings, including some high-protein snacks such as protein bars and egg bites, but now the company is diving into protein-enriched beverages as well.
The coffee chain rolled out its new Protein Cold Foam, along with a new line of protein lattes made with protein-boosted milk, in September. The beverages provide between 15 and 36 grams of protein per serving and are available across the U.S. and Canada.
“We’re focused on modernizing our menu with innovative, relevant, and hype-worthy products that will resonate with our customers,” said Tressie Lieberman, Global Chief Brand Officer at Starbucks, in a statement. “Our new protein beverages tap into the growing consumer demand for protein in an innovative, premium and delicious way that only Starbucks can deliver.”
The Protein Cold Foam taps into the existing popularity of the company’s cold foam topping, which it said has grown 23% year over year and is now requested in 1 in every 7 drink orders.
Starbucks, under the leadership of its new CEO, Brian Niccol, began testing protein beverages in July through its “starting 5” innovation program, which tests products in five Starbucks cafes and gathers feedback from both baristas and customers before rolling them out to more stores. Protein Cold Foam is the first item created and tested using the Starting 5 approach, the company said.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
Interested in a small business membership?
Find out how the U.S. Chamber of Commerce can help your company grow and thrive in today's rapidly-evolving business environment. Connect with our team to learn how a small business membership can benefit your bottom line and help you achieve your goals.
