Growing Demand for Protein Boosts Opportunities for US Dairy Industry
The demand for high-protein foods and beverages among American consumers is increasing, creating new opportunities for the US dairy industry. A report from CoBank's Knowledge Exchange highlights that traditional dairy products like milk, cheese, yogurt, and cottage cheese contain high levels of protein, making them attractive to consumers focusing on protein intake.
Corey Geiger, lead dairy economist with CoBank, noted that dairy products have the unique advantage of containing all nine essential amino acids required in a human diet. This makes them a complete protein source and positions them well in the market as more manufacturers incorporate dairy-based ingredients into products beyond the retail dairy case.
Recent trends indicate that American consumers are increasingly conscious of their protein intake. In 2022, 59% of Americans aimed to include more protein in their diets, a figure that rose to 67% by 2023. By 2025, seven out of ten consumers expressed a desire for more protein in their diets.
The US Dietary Guidelines, announced on January 7, have increased the recommended daily allowance of dietary protein for adults, further encouraging the shift towards protein-rich diets. Additionally, the use of GLP-1 medications for weight loss has sparked greater interest in dietary protein. A Cornell University study found that GLP-1 users are spending more on protein-rich foods such as yogurt and protein bars.
Food and beverage products labeled as high-protein can command a price premium of up to 12%, according to market research estimates. This economic incentive drives manufacturers to develop more high-protein offerings.
Opportunities for growth in the dairy industry include snacks and ready-to-drink protein shakes. While only 17% of consumers prioritize protein when selecting snacks, there is potential for dairy products to enhance their appeal by emphasizing protein content. The protein shake category has grown significantly, with sales increasing from $4.7 billion to $8.1 billion over four years.
Geiger emphasized that the amino acids in dairy products could enable manufacturers to create products with higher protein content, reduced sugar levels, and cleaner labels, presenting a long-term opportunity for dairy processors.
