India is witnessing a remarkable transformation in the food ecosystem, with FMCG companies racing to introduce protein-enriched versions of everyday products. From protein kulfi to protein bread, these innovations are addressing a critical nutritional gap while opening up profitable new market segments.
This shift is no coincidence. With approximately 73% of Indians failing to meet the daily protein requirement of 0.8-1 gram per kilogram of body weight, FMCG companies are positioning themselves to address this deficiency while boosting their bottom lines. The consumer demand for protein has surged beyond fitness enthusiasts to encompass health-conscious individuals across all demographics.
This growing market and consumer preference for health-focused products indicate potential for long-term growth in this sector, presenting significant opportunities for investors who can expand their portfolios by including high-protein offerings.
The Protein Deficit: A National Challenge
Experts suggest that an average adult consumes around 60 grams of protein daily. While Indian diets provide adequate protein for many, notable disparities exist across different socioeconomic groups, creating significant market opportunities.
The growing focus on protein adequacy has highlighted several nutritional concerns:
- Uneven protein distribution across different population segments
- Increased awareness of protein quality beyond mere quantity
- Growing recognition of the role of protein in preventive healthcare
- Rising desire for convenient protein sources among time-constrained urban professionals
FMCG companies have recognised this gap as a public health concern as well as a business opportunity, with projections to reach the market size of $1.65 billion by 2026.
Strategic Product Development
Rather than creating entirely new product categories, most FMCG companies are taking a smarter approach by enriching familiar favourites with protein. This strategy offers several advantages:
- Consumers can increase protein intake without significant lifestyle changes
- Familiar tastes and formats ensure easier adoption
- Companies can leverage existing distribution channels and brand recognition
- Premium pricing allows for higher margins
Amul, India’s largest FMCG brand, follows this approach with its expanding portfolio of whey-infused products, including lassi, curd, buttermilk, and the recently viral protein kulfi. Similarly, Britannia [NSE: BRITANNIA] has introduced protein-enhanced versions of its bread and biscuits.
The Rise of Protein-Focused Startups
The market for health and wellness food in India has witnessed explosive growth in protein-focused startups since 2020, with over 113 new ventures changing how Indians consume this essential nutrient.
- These innovative companies span diverse protein categories, including plant-based, fermented, cultivated, and traditional dairy-derived options. As a result, there is a growing consumer demand for protein across multiple food categories.
- Startups have successfully transformed protein from a purely nutritional consideration into a lifestyle statement embraced by health-conscious consumers.
- Their marketing efforts have expanded the protein supplement industry well beyond its traditional base of fitness enthusiasts.
Investment Opportunities in the Protein Revolution
The FMCG protein trend is creating exciting investment opportunities as more everyday products now include protein additions. Here are some interesting investment opportunities in this sector:
- Plant-Based Protein Startups: Companies creating meat alternatives from plants offer high growth potential due to their innovative products and expanding sales networks. For example, ITC Ltd. [NSE: ITC] has expanded into plant-based protein products, offering items like plant-based meat under its ‘IncrEdible’ brand. The company has shown resilience in the market, with its stock trading at ₹423.55 on May 12, 2025, considerably above its 52-week low of ₹390.15.
- Established Food Giants: Big FMCG companies with protein divisions are generally considered safer investments. They combine new product development with existing distribution channels and consumer trust.
- Manufacturing Consolidation: The protein supplement industry is seeing companies merge and partner up. This creates opportunities to invest in production facilities that can make products for multiple brands while ensuring consistent quality.
- Ingredient Technology: Companies developing innovative methods to extract protein from local sources, such as millets and pulses, demonstrate strong investment potential. These innovations are crucial to the growing market of health and wellness food in India.
Challenges and Future Outlook
Despite the promising growth trajectory, companies engaged in the market for health and wellness food in India face several challenges:
- Consumer education remains a significant hurdle, as many Indians lack awareness about their protein requirements and the benefits of protein consumption.
- Price sensitivity presents another challenge, particularly for mass-market penetration.
- Companies must develop cost-effective formulations to reach price-conscious segments, especially in tier-2 and tier-3 cities.
These challenges have not dampened the prospects for the protein-fortified food and protein supplement industry. Industry experts say still more room for the market to grow as health concerns increase and companies get creative to break price and taste barriers.
Final Thoughts
The protein revolution in India represents a substantial departure in how FMCG companies are responding to the evolving tastes of consumers and addressing nutritional gaps. With the increasing knowledge and protein’s growing prominence in health-conscious consumer choices, there will likely be continued innovation and growth in the protein-rich snacks market.
Check out Torus Digital to learn more about the various investment opportunities in this fast-moving category.
