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The demand for protein is driving new opportunities for protein beverages—beyond sports and active nutrition uses—as mainstream consumers seek healthier beverage options.
Asia Pacific’s $143.4 billion functional beverage market makes up nearly half of the $300.2 billion global functional beverage market, with good growth ahead (+4.0% CAGR, 2022-2027).1 The fastest growing categories in the region are sports drinks (+12.3%), energy drinks (+11.3%), dairy alternative beverages (+3.1%), and protein drinks (+3.0%).2
The protein drink category is uniquely positioned as the only niche functional beverage category (less than $5 billion) on the rise.3 Though protein drinks are often associated with sports and active nutrition consumers, beverage companies are responding to the trending mainstream interest in protein; last year, protein claims were the top health claim in new functional beverages launched in Asia—ahead of energy and immunity claims.4
| Asia | Australasia | Europe | North America | |
|---|---|---|---|---|
| 1 | High in/source of protein | High in/source of protein | Energy/alertness | Energy/alertness |
| 2 | High in/source of fiber | Energy/alertness | High in/source of protein | High in/source of protein |
| 3 | Energy/alertness | Probiotic | Vitamin/mineral fortified | Antioxidant |
| 4 | Immune health | Immune health | Immune health | Immune health |
| 5 | Bone health | Antioxidant | High in/source of fiber | Probiotic |
In Asia Pacific’s sports and active nutrition market, sales of ready-to-drink protein drinks reached $432 million last year and are expected to hit $571 million in 2027, at a CAGR of 7.2%.5 This growth rate is even higher than the +7.0% forecast for ready-to-mix protein drinks (the protein format that dominates the sports and active nutrition market).6
Japan is the leading region for sports and active nutrition ready-to-drink protein drinks, with $304 million in sales.7 Though there is less market penetration, significant growth is forecast for China (+16.7% CAGR, 2023-2027) and Australia (+8.9%),8 reflecting the growing number of consumers seeking protein for exercise and active lifestyle support.
| Country | Sales ($ US million) | est. CAGR (2023-2027) |
|---|---|---|
| Japan | $304 | +7.1% |
| Australia | $50 | +8.9% |
| South Korea | $32 | +4.5% |
| China | $7 | +16.7% |
Globally, 42% of consumers consider protein to be the most important ingredient, with this perspective especially strong among Millennials and Gen Z.9 This trend is also playing out in Asia as more consumers looking for foods and beverages that can better support their health see protein as the answer.
Our own consumer research shows that protein acts as a signpost for health and that the inclusion of protein shifts consumers’ perception of products from less healthy to more healthy.10 Understanding that an interest in health is driving the protein trend opens up new product development approaches.
Protein does not need to be limited to traditional sports protein drinks but can expand into beverage categories not previously considered—for example, protein-enhanced coffee and water, and even yogurt and dairy alternative beverages with added protein.
Today’s consumers are seeking a wide range of functional benefits from beverages, and this allows them to get the protein boost they’re looking for in a variety of ways, including from their favorite beverage categories. Adding protein also helps your beverage stand out from the competition.
Whether you’re considering opportunities in sports protein RTD or innovative protein-enhanced functional beverages, the time is right to focus your product development efforts on protein. As the protein trend gains traction in Asia, offering consumers convenient options that address this need provides a pathway to success.
Contact Glanbia Nutritionals to discuss the benefits of using our dairy-based proteins, micronutrients, and custom premix solutions in your next beverage.