The protein boom is only beginning: Morning Brief
Protein Doritos sounds like the ideal mashup for the gym rat snack fiends of the world. But it's not as farfetched a product as you might think. Pepsi (PEP) plans to unveil new protein offerings for some of its Frito-Lay and Quaker brands, part of a broader shift to enhance their products and strip away artificial flavors and colors. (But what is a tasty Cheeto if not a brazenly synthetic delight?)
Pepsi's intended relaunch and extension of popular brands is a reaction to a consumer base on the hunt for healthier, cleaner options. Executives across the food and beverage world see a potential crisis unfolding. As demand for legacy products wavers, companies are reaching for new lines (like fiber, prebiotics, hydration, energy, and protein) to support the core business.
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"Protein is clearly a subsegment in our food and beverages categories that is growing fast," said PepsiCo CEO Ramon Laguarta on an earnings call last week. "Consumers are adopting protein solutions in the diet at a pace that was not the case a few months back, a few years back."
Coca-Cola (KO), which reported on Tuesday, is undergoing its own notable evolution. Earlier this year, the company came out with a prebiotic soda brand, Simply Pop, an answer to the initial success of soda alternatives like Olipop and Poppi. Coca-Cola's Fairlife line of lactose-free, ultra-filtered milk and protein shakes (a fitness influencer staple) is touting double-digit volume growth.
Coke CFO John Murphy told my colleague Brooke DiPalma that protein is another representation of consumers looking for products that help them in their daily lives, have fewer calories, or are perceived as healthier. Coca-Cola also confirmed it'll offer a Coke variant sweetened with US cane sugar this fall.
A confluence of factors has amped up the recommendations and ability to up your protein intake.
Strength training is having a moment, in a sort of vindication of gym bro fitness culture but also an expansion and reimagining of it. More young people, older people, and women are skipping (or supplementing) the treadmill and stationary bike and heading to the weight rack.
Big, commercial gyms are swapping out cardio machines to make space for pumping iron. Planet Fitness (PLNT) announced plans at the start of the year to install new plate-loaded strength equipment — like bench presses and hack squats — into all of its more than 2,700 clubs by the end of 2025. Logically, protein follows to help realize the gains.
Social media reflects and amplifies these trends. Popular influencers, like some of their Hollywood counterparts, are sporting more muscular physiques: wider backs, denser arms, and thicker legs. And they're touting the advantages of higher protein consumption as a method to change the way people look and feel. You have to eat more protein, they proclaim, to grow a dump truck.
The opposite is true too: You generally need to actually train to put protein to work — and we may all be going overboard. Otherwise, you're just eating protein aspirationally.
The explosion of GLP-1 weight-loss drugs from Eli Lilly (LLY) and Novo Nordisk (NVO) is another reason why consumers are seeing more protein-enriched foods on grocery aisles. As appetite-suppressed Ozempic and Wegovy users eat less and drop pounds, it isn't just body fat they're shedding. People in a calorie deficit generally lose fat and muscle, so healthcare providers advise patients to eat more protein to help preserve their muscle mass.
And as a diet trend, the pro-protein movement is also just that, "pro" something, instead of the carb villainization of Atkins of the 2000s or low-fat of the 90s and before. For food and snack companies, it's an opportunity to capitalize on that turbocharged demand by providing something that's acceptable to eat, tackling health through consumption instead of austerity.
So far, the market is gobbling it up.
Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban.
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