Protein has become America's latest obsession. Companies like General Mills and PepsiCo are capitalizing on it

CNBC

7 days ago

High-protein products are taking over the grocery aisle as brands like General Mills and PepsiCo are capitalizing on the trend.
In fiscal 2024, General Mills generated more than $100 million in retail sales from its protein cereal lines, including Nature Valley Protein, Cheerios Protein and Ghost Protein.
PepsiCo has protein product launches planned for its fiscal fourth quarter of 2025 and fiscal first quarter of 2026, according to its a recent earnings call. PepsiCo CEO Ramon Laguarta said on CNBC's "Squawk on the Street" last week that he believes the protein category will continue to grow.
A 2025 Bain & Company survey found that 44% of U.S. respondents said they want to increase their protein intake, up from 34% from the same period in 2024.
"Companies are going to try to differentiate themselves by creating a message that appeals to the customer and says, you know we have been offering this wonderful product for you. And what you didn't know is we've already been full of protein," said Stephen Zagor, adjunct assistant professor of business, specializing in food business at Columbia University.
Kraft Heinz, for example, has fine-tuned the messaging around its existing product lines.
"Now we're going to be highlighting the amount of protein that families can get from real food rather than from powders," said Kraft Heinz CEO Carlos Abrams-Rivera at the Deutsche Bank Consumer Conference last month.
The Oscar Mayer parent company said it is rolling out new packaging for its cold cuts business. Its Lunchables brand is also now emphasizing that its products each have 12 grams of protein.
But there is also a wave of new players jumping on the protein trend. David Protein Bars, created by the founders of RxBar and low-carb dessert brand Raize, was launched in September, and the company said it's on track to generate over $100 million in revenue during its first year in business.
There's also been an increase in more nontraditional protein-heavy products, like ice cream. Protein Pints was founded in 2023 by Michael Meadow and Paul Reiss. The company said it recorded less than $100,000 in revenue in 2024 but is on track for more than $20 million in 2025.
"We just surpassed over 10 units per store per week at Target for cookie dough, and it is surpassing our wildest expectations," said Reiss. "For context, 10 units per week is over double the category average. And keep in mind, our product is higher priced by almost $2 than the average ice cream."
The conversation surrounding protein proliferates amongst fitness influencers on social media, as well as celebrities like Khloe Kardashian and Patrick Schwarzenegger, who have started their own protein food companies called Khloud and Mosh, respectively.
Developments in medical weight loss drugs are also helping to fuel the trend. Consumer research from food trend firm Mattson shows that people on anti-obesity medications are seeking out products that will help increase their protein intake.
The National Frozen & Refrigerated Foods Association found 46% of GLP-1 drug users reported high-protein content makes them more likely to purchase a frozen food product.
But there are risks to competing in the protein category. Zagor said when companies alter the composition of a product to be higher protein, consumers will benchmark the taste, texture and price to what they know — and may be turned off by the change.
"Once you start adding in claims on a food item that [say] we're now higher protein, it becomes a little bit of a different evaluation set for the customer," said Zagor.
Meadows said this gives Protein Pints an advantage in the space because they are building the brand on the premise of being a high-protein product, rather than having to rebrand a product consumers already know.
PepsiCo dismissed this concern when asked about this risk of diluting brand equity in its fiscal second quarter earnings call.
"We've been very surprised, positively surprised, how consumers are seeing our brands expanding into those more functional spaces with credibility," said Laguarta.
Some companies are backing their investments in protein with commissioned consumer research.
Chobani, for example, said it found 85% of Americans want to increase their protein intake in 2025. A study paid for by beef stick company Chomps found that protein snacks are growing at three times the rate of the overall snacking industry, accounting for $24 billion in revenue in 2024.
The mainstream adoption of high-protein diets is being felt firsthand from players like Barilla, which first rolled out its Protein+ pasta line back in 2005. This year, the company has expanded distribution of the product into BJ's and Walmart-owned Sam's Club.
"It is definitely a line that we are excited about and heavily investing in," said Barilla Innovation Lead Cammie Slikker. "What we've seen in the last three years is demand like we haven't seen before."
Watch the video to learn more about why so many companies are investing in the protein category.