Dairy is poised to help meet consumers growing demand for protein
Consumer demand for foods and beverages with high protein levels continues to surge as a growing percentage of Americans focus on increasing their dietary protein.
The sharp rise in demand is shifting buying habits and could ultimately transform the retail grocery space.
Food and beverage manufacturers representing a host of product categories are moving quickly to respond with new product offerings and position themselves for success with protein-hungry consumers.
Strong consumer demand
According to a new report from CoBank’s Knowledge Exchange, this strong consumer demand for protein bodes well for the U.S. dairy industry, given the high protein levels and nutritional qualities in traditional dairy products like milk, cheese, yogurt and cottage cheese.
But for dairy processors, the opportunity extends well beyond staple products in the retail dairy case.
Dairy-based ingredients are increasingly being used to boost protein content in a wide variety of products including baked goods, protein bars, ready-to-drink protein shakes and whey powders.
“The dairy industry is in a great position to help consumers meet their protein intake goals,” said Corey Geiger, lead dairy economist with CoBank. “Dairy products have a unique advantage because they contain all nine essential amino acids required in a human diet, making it a complete protein source.”
“We expect more food and beverage manufacturers will take a cue from formulators who have already incorporated dairy-based ingredients into protein-centric product areas outside of the retail dairy case,” he added.
Consumers of virtually all ages associate protein with an expanding array of health benefits, and the momentum behind protein has been building in recent years.
In 2022, 59 percent of American consumers reported trying to consume more protein in their diet, according to the International Food Information Council (IFIC).
By 2023, the percentage had grown to 67 percent, and in 2025, seven in 10 American consumers wanted their diets to include more protein.
“Protein is top of mind for consumers in making a better-for-you purchase,” said Billy Roberts, senior food and beverage analyst with CoBank. “And the inherent benefits of dairy products position them well to resonate with consumers, particularly those adjusting their diets for weight loss or to abide by the recently announced Dietary Guidelines for Americans (DGA).”
Opportunities abound
The new DGA announced on Jan. 7 increases the recommended daily allowance of dietary protein for adults from 0.8 grams to 1.2 to 1.6 grams per kilogram of body weight.
Increased usage of GLP-1 medications for weight loss is also sparking more widespread consumer interest in dietary protein.
According to Kent Fine Foods, at least 12 percent of adults indicated they were taking GLP-1 medications in November 2025. This percentage is expected to climb even higher as less expensive pill forms of the weight-loss medication are set to debut this year.
A study by Cornell University found GLP-1 users are increasing their spending in a handful of categories, including yogurt, fresh fruits, vegetables, meat snacks and protein bars.
Echoing those findings, Danone, maker of Oikos Greek yogurt, has reported double-digit growth in its high-protein offerings, a trend it says has accelerated with the adoption of GLP-1 medications.
Beyond meeting consumer demand, food and beverage makers have an added incentive for offering more high protein products – price. According to estimates from Circana and other market research firms, food and beverage products with a high-protein label claim can command a price premium of as much as 12 percent.
Key growth opportunities
While the snacking category has been growing for decades, protein claims remain somewhat of an afterthought. Only 17 percent of consumers indicate they prioritize protein when selecting a snack, according to IFIC.
This creates an opportunity for snack makers to leverage protein as a product attribute and protein-rich dairy products could play a role in shifting consumers’ criteria for snacks.
Building on this opportunity, the role of a healthier, more satiating snack with high protein content could solve multiple consumer demands, including health and convenience.
Ready-to-drink protein shakes also represent a key growth opportunity for the dairy industry. While traditional fluid milk sales have been sluggish, data from Circana indicates sales in the protein shake category climbed 71 percent over the last four years.
This represents a jump from $4.7 billion to $8.1 billion in dollar sales, with continued growth expected in the category.
“The amino acids in dairy products will create even more opportunities for dairy as stand-alone products and ingredients as food manufacturers look to boost protein content, reduce sugar levels and create more streamlined, clean-labeled products,” said Geiger. “Ultimately, this transformation in the retail space represents a significant, long-term opportunity for dairy processors and food manufacturers alike.”
CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. Headquartered outside of Denver, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative officein Singapore.
