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Ready-to-Drink Protein Beverage Market

Ready-to-Drink Protein Beverage Market: Information by Source (Whey, Casein), Distribution Channel (Supermarkets/Hypermarkets, Pharmacies/Drugstores), and Region — Forecast till 2030

Published At : 06 Sep, 2022
Updated At : 07 Sep, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
8.1 %
Fastest Growing Market:
Asia-Pacific
Largest Market:
North America

The global ready-to-drink protein beverage market size was valued at USD 1,423 million in 2021, presumed to reach USD 2,654 million, expanding at a CAGR of 8.1% during the forecast period. Protein is s crucial macro-nutrient that plays a role in the development of muscle, the repair of damaged tissue, and the production of enzymes and hormones. Many athletes and gym-goers consume protein beverages in the belief that they will help them gain muscle mass after strength training. A protein beverage is a drink typically made from whey, a bovine milk product, used to aid in the recovery of fatigued or overly stressed muscles. The ready-to-drink protein beverages are produced using a range of high protein compounds to fulfill the daily nutrient requirements of the individuals. These beverages are considered an easy and convenient way to consume nutrients while on the go.

The ready-to-drink protein beverage market grew significantly due to consumers' increasingly hectic and fast-paced lifestyles, which prompted them to opt for quick and nutritious meal options. This has led to the proliferation of RTD shakes that provide nutrient-rich beverages and encourage active lifestyles. In addition, the tendency of consumers toward health and awareness is generating a substantial demand for protein-rich beverages. Presently, protein drinks are being marketed as sports nutrition drinks in a growing number of regions. Fitness enthusiasts increasingly consume these protein drinks to enhance their performance, health, and muscle growth. In addition, the rising demand for plant-based protein drinks is anticipated to encourage manufacturers to distribute organic and clean-label protein drinks throughout market channels.

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Market Dynamics

Global Ready-to-Drink Protein Beverage Market Drivers

The Growing Number of Health and Fitness Clubs 

Protein-based beverages are gaining popularity, particularly among sportsmen and individuals who engage in strenuous physical activity. Some of the key drivers contributing to the expansion of the global ready-to-drink protein beverage industry include an increased emphasis on maintaining a healthy lifestyle and getting into shape, as well as an increase in the number of people participating in sports, health clubs, sports clubs, and gyms. Health clubs and fitness centers have experienced consistent growth due to increased health concerns and lifestyle changes. The demand for sports nutrition products, such as protein beverages, was fueled by increased health consciousness and the need for adequate nutrition in food. A surge in the proportion of middle-aged and elderly people participating in sports has contributed to the growth of the ready-to-drink protein beverage market.

Most health clubs sell beverages that contain protein. In addition, some health clubs employ dietitians to assist customers in selecting these products. Due to the growing number of health centers and fitness clubs worldwide, which serve as the primary distribution channels for protein beverage products, the popularity and demand for these items are increasing. In 2017, the International Health Racquet and Sports Club Association reported that there were approximately 201,250 health and fitness clubs worldwide and 38,477 clubs in the United States. The data indicate an increased consumer awareness of physical fitness, which has fueled the global demand for protein beverages. Thereby, the rising proportion of health and fitness centers has positively impacted the expansion of the market, as these centers promote protein-based drinks to their respective consumers.

Global Ready-to-Drink Protein Beverage Market Restraints

Regulatory Restraints

Regulatory difficulties are a substantial impediment to the growth of the studied market. In the United States, the Food and Drug Administration (FDA) governs the ingredients of finished dietary supplement products, while the European Food Safety Authority is likewise responsible in Europe. Similarly, the Food Safety and Standards Authority for India and the State Food and Drug Administration for China are the primary regulatory bodies in their respective countries for nutrition matters. The FDA applies different regulations to dietary supplements than "conventional" foods and drugs. These organizations encompass every aspect of the nutrition regulatory system, including evaluation, investigation, law, inspection, and sanction. Manufacturers and distributors of dietary supplements and ingredients are prohibited from marketing adulterated or mislabeled products. Companies are responsible for evaluating the safety and labeling of their products before marketing to ensure compliance with all applicable regulations; failure to do so can result in product recalls.

Global Ready-to-Drink Protein Beverage Market Opportunities

Organic and Flavored Sports Nutrients

Globally, consumer preferences for cleaner ingredients and interest in organic foods are on the rise, particularly in response to the rising demand for protein drinks among consumers who lead active and healthy lives. In response to the increasing demand, market participants are focusing on developing innovative products that meet the needs of consumers to gain a substantial market share. For example, in 2019, OATH announced the launch of its flagship product, OATH Organic Oat-Milk with Plant Protein, an organic oat-milk protein beverage containing 15-16 grams of protein and 6-10 grams of fiber. Moreover, consumers are opting for options with novel and inventive flavors. As a result, businesses are developing new products to accommodate shifting consumer preferences. Consequently, new product introductions and technological advances generate lucrative market opportunities.

Segmental Analysis of Global Ready-to-Drink Protein Beverage Market

The global ready-to-drink protein beverage market is classified based on source, distribution channel, and region.

Based on the source, the categories include Whey, Casein, Soy, and Other Sources.

The whey section is projected to advance at a CAGR of 7% and hold the largest market share. Whey proteins have exceptional nutritional value, a neutral taste, are easily digestible, and provide unique functionality in beverages, making them a popular protein source in RTD beverages, thereby driving market demand. In addition, Whey protein contains all the essential amino acids needed by the body, making it an ideal choice for manufacturers of protein beverages. Along with its increasing consumption for muscle building, it is also ingested for its anti-aging properties. The glutathione found in whey protein helps to delay the onset of aging, while amino acids give skin elasticity and firmness.

Additionally, whey has added benefits like fat loss, stress reduction, and decreased cravings, which increases its use in protein drinks. In addition, the demand for meal replacement has elevated in developed nations such as the United States, the United Kingdom, Germany, and others, as consumers shift away from fad diets and toward more advanced weight management methods. Consequently, the global market for such products, especially ready-to-drink beverages, has grown. Whey protein has been the most common ingredient in meal replacements for a very long time.

The casein section will hold the second largest share. Casein is the major protein in dairy milk, comprising approximately 80% of the total protein content. Caseins have high solubility and thermal stability above a pH of 6. Casein is a slow-digesting dairy protein included in meal replacement and weight-loss beverages due to its ability to satisfy hunger for an extended time. Health-conscious consumers who desire fewer and smaller meals per day opt for RTD beverages, thereby driving the segment's demand. Additionally, its slow digestion rate and constant supply of amino acids to muscle cells inhibit protein breakdown within the body. Consequently, it may promote muscle growth and aid in fat loss.

Based on the distribution channel, the categories include Supermarkets/Hypermarkets, Pharmacies/Drugstores, Specialty Retailers, Online Retail, and Other Distribution Channels. 

The supermarket/hypermarket section is projected to advance at a CAGR of 7.7% and hold the largest market share. Globally, supermarkets and hypermarkets are the leading distribution channels for the sale of ready-to-drink protein beverages due to their vast retail space and ability to cater to various preferences. The expansion of businesses and the growing number of hypermarkets and supermarkets contribute significantly to the RTD protein beverage market by boosting the sales of these retail formats. In addition, market sales of protein beverage products from these mass merchandisers increased due to the availability of numerous brands, a significant factor in the rising demand. To meet the growing demand for protein powders, supermarkets have introduced their brand of protein beverages.

The online retail section will hold the second-largest share. Rapid advances in digital technology have blurred the distinction between online and offline retail stores, incorporating physical and digital experiences to create a unique omnichannel platform. In addition to the convenience of home delivery, consumers utilize online channels because they allow them to shop from home without incurring travel time. These advantages have increased global e-commerce platform sales. The high prices of the products add to the increasing popularity of online channels, where products are frequently sold at substantial discounts compared to retail stores. In terms of community-building and consumer education, online retailers are innovative.

Regional Analysis of Global Ready-to-Drink Protein Beverage Market

The region-wise segmentation of the global ready-to-drink protein beverage market includes North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

Ready-to-Drink Protein Beverage Market Regional Analysis

Regional Growth Insights Request Sample Pages

North America and the Asia Pacific will dominate the regional market

North America will command the market with the largest share while growing at a CAGR of 5.5%. The demand for ready-to-drink protein beverages in North America is primarily influenced by the growing awareness of healthy living and the increasing number of working populations demanding healthy beverage consumption. Additionally, disposable spending, social demographics, and the product's easy availability on retail shelves contribute to the region's RTD market expansion. In addition, sports nutrition foods and beverages are increasingly sold on the mass market via supermarkets/hypermarkets, specialty retailers, drug stores, and others in the region's countries. Thus, prominent brands are heavily engaged in releasing new RTD protein beverages due to the increasing demand.

In addition, many customers demand vegan beverages due to the rising vegan and flexitarian trend. Players are capitalizing on the increasing popularity of plant-based protein diets to capitalize on such market opportunities. Sproud, a Swedish company, launched a line of Pea Protein Milk in the United States in 2020. Thus, these factors boost the market for ready-to-drink protein beverages in North America.

The Asia Pacific will expand at a CAGR of 13.2% and hold USD 888 million. Asia-Pacific nations with growing middle classes, such as China and India, have witnessed a rise in consumption across all sectors, particularly in the health and fitness sector. Such potential has encouraged multinational brands to invest heavily in these nations' health drink markets. In addition, consumers seek a greater variety of ready-to-drink health supplements and are becoming more discriminating.

Additionally, the region has witnessed a rise in demand for plant-based, ready-to-drink protein beverages. This trend is bolstered by lifestyle and consumption enhancements, consumer pursuit of sustainable lifestyles, and rising consumer health consciousness. In addition, manufacturers are emphasizing the incorporation of local flavors and preferences into their ready-to-drink protein beverages to provide consumers with a variety of options and stay ahead of the competition over their rival companies, thereby maintaining a decent level of product differentiation and boosting the market for ready-to-drink protein beverages in the Asia Pacific.

Players of the Market

  • Kellogg Company
  • Glanbia PLC
  • PepsiCo Inc.
  • Halen Brands
  • Post Holdings Inc.
  • Koia
  • Abbott Nutrition
  • Labrada Nutrition
  • Pure Protein
  • Organic Valley
  • The Coca-Cola Company

Recent Developments

  • In 2022, Kellogg Company and Nickelodeon collaborated to create the new Kellogg Apple Jacks Slime cereal.

Global Ready-to-Drink Protein Beverage Market: Segmentation

By Source

  • Whey
  • Casein
  • Soy
  • Other Sources

By Distribution Channel  

  • Supermarkets/Hypermarkets
  • Pharmacies/ Drugstores
  • Specialist Retailers
  • Online Retail
  • Other Distribution Channels

By Region 

  • North America 
  • Europe
  • Asia Pacific 
  • South America
  • The Middle East & Africa
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