Key Takeaways
- CoBank analysis shows sustained growth in consumer demand for high-protein foods and beverages across the U.S.
- Dairy products and dairy-based ingredients are well positioned due to their complete amino acid profiles.
- New dietary guidelines and GLP-1 weight-loss medication adoption are reinforcing protein consumption trends.
- Protein-focused snacks and ready-to-drink beverages present notable expansion opportunities for dairy processors.
- High-protein product claims can command price premiums of up to 12%, according to market estimates.
CoBank Examines Protein Consumption Trends and Dairy Market Implications
Consumer demand for high-protein foods and beverages continues to rise as more Americans prioritize protein intake as part of their daily diets. According to a new report from CoBank’s Knowledge Exchange, this shift is reshaping purchasing habits and has the potential to transform product strategies across the retail grocery sector.
Food and beverage manufacturers spanning multiple categories are responding with new product launches and reformulations aimed at protein-focused consumers. The report indicates that the U.S. dairy industry is particularly well positioned to benefit from this trend, given the naturally high protein content of products such as milk, cheese, yogurt, and cottage cheese.
“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.”
CoBank Identifies Expanded Uses for Dairy-Based Protein Ingredients
Beyond the Traditional Dairy Case
The CoBank report notes that opportunities for dairy processors extend well beyond traditional retail dairy products. Dairy-based ingredients are increasingly being incorporated into baked goods, protein bars, ready-to-drink protein shakes, and whey-based powders to enhance protein content.
Geiger added that food and beverage manufacturers are likely to continue following early adopters that have already integrated dairy ingredients into protein-centric offerings outside the dairy aisle.
“Ultimately, this transformation in the retail space represents a significant, long-term opportunity for dairy processors and food manufacturers alike,” Geiger said.
Dietary Guidelines and GLP-1 Medications Support Protein Momentum
CoBank Analysis Links Policy and Health Trends
The report highlights several structural tailwinds supporting protein demand. Updated U.S. Dietary Guidelines for Americans, announced in January, increased the recommended daily protein intake for adults from 0.8 grams to between 1.2 and 1.6 grams per kilogram of body weight.
At the same time, growing adoption of GLP-1 medications for weight loss is influencing food purchasing behavior. According to KFF, approximately 12% of U.S. adults reported using GLP-1 medications as of November 2025, with further growth expected as lower-cost pill-based alternatives enter the market.
“Protein is top of mind for consumers in making a better-for-you purchase,” said Billy Roberts, senior food and beverage analyst with CoBank. “Dairy products’ inherent benefits position them well to resonate with consumers, particularly those adjusting their diets for weight loss or to align with updated dietary guidance.”
Snacks and Protein Beverages Emerge as Key Growth Segments
Retail Opportunities Highlighted by CoBank
While snacking has grown steadily over several decades, protein has not historically been a primary decision factor. According to the International Food Information Council, only 17% of consumers currently prioritize protein when selecting snacks, creating an opportunity for reformulation and repositioning.
Ready-to-drink protein beverages also stand out as a high-growth category. Data cited by CoBank from Circana shows protein shake sales increased 71% over the past four years, reaching $8.1 billion in annual sales. Continued growth is expected, even as traditional fluid milk sales remain relatively flat.
High-protein labeling may further incentivize innovation. Market research estimates indicate that products carrying protein claims can command price premiums of up to 12%, reinforcing the commercial appeal of protein-forward formulations.
Long-Term Outlook for Dairy in a Protein-Focused Market
The CoBank report concludes that dairy’s nutritional profile, formulation flexibility, and alignment with evolving consumer health priorities position the sector to play a central role in meeting rising protein demand.
As food manufacturers continue to seek ways to increase protein content, reduce sugar, and simplify ingredient labels, dairy-based proteins are expected to remain a key component of product development strategies across multiple categories.
Discover the entire report here.
