Adding protein to bulk up bottom lines

Adding protein to bulk up bottom lines

Initially it was a demand that seemed to ooze out of gyms — fitness and bodybuilding enthusiasts clamouring for more protein in their quest for rippling muscles. As social media influencers and diet gurus began chanting this new mantra, protein began dominating the nutrition facts labels in everything from snacks and savouries to smoothies and hot beverages.

Emerging brands like Shaka Harry, Aquatein, GoodDot, Gladful, Twiddles, Yogabar, and SuperYou are capitalising on this growing trend by offering a host of protein-rich products.

The segment has collectively raised $94.1 million since 2019, markedly up from $19.9 million during the pre-Covid period. Funding peaked at $24.3 million in 2022, according to market intelligence platform Tracxn.

A source of energy that is essential for building and repairing tissues, proteins also drive metabolic reactions, and support the immune system, among other bodily functions. According to the Indian Dietetic Association (IDA), 50 per cent of Indian diets are inadequate in protein.

Nutritionists like Dr Deepa Agarwal, founder of Hyderabad-based Nutriclinic, point out that protein intake is typically lower among many Indians who are vegetarian or vegan. “While traditional Indian diets often focus on carbohydrates, protein sources remain secondary,” she says.

However, Indian consumers are generally resistant to meal replacements, observes Ananth B Prabhala, who co-founded Aquatein, offering protein beverages as a way to address this reluctance.

Founded in 2019, the startup infuses water with whey protein isolate — consumed to support muscle building and weight management, among other uses — and its target consumer is aged 28–45. However, Prabhala is seeing growing interest from older consumers, too.

“Seven to eight per cent of our clientele is now aged about 65, as doctors increasingly prescribe high-protein diets. For many seniors, it’s difficult to accept other forms like protein bars or powders — beverages offer a much easier starting point,” he says.

Although many protein-focused startups concentrate on the snacking or shake segment, a few like Shaka Harry address the savoury category — which includes staples like parathas and samosas.

Anand Nagarajan, CEO and co-founder of Shaka Harry, says, “Our products contain 16 per cent protein per 100 gm (average).”

He adds that the company formulates its products in-house, while partnering with external packers — located across Hyderabad, Bengaluru, Kerala, and Chandigarh — for specific capabilities.

Catch ’em young

Gladful focuses on breakfast solutions for young children, thereby addressing a key pain point for parents. “Most moms, much like me before, are not protein-savvy, and many urban Indians, including kids, are protein-deficient. Gladful aims to make it easier for parents to provide protein through foods their kids already enjoy,” says Parul Sharma, co-founder of Gladful.

The brand currently offers eight stock-keeping units (SKUs) in the breakfast mixes category. Sharma says 35 per cent of Gladful’s customers are in Tier 2 cities, while 30 per cent reside in non-metro regions.

In the case of plant-based meat company GoodDot, 90 per cent of sales comes from offline channels. CEO and co-founder Abhishek Sinha describes the manufacturing process used by the company: “We use denaturation of protein, which changes the amino acid linkages through the application of heat and pressure. This realigns the proteins into layers, giving them a meat-like texture.”

Expansion

Shaka Harry, which currently offers 16 SKUs, plans to launch eight to ten more products this year, while also venturing into the snacking segment. Internationally, the startup aims to strengthen its presence in the US, in cities such as Dallas, Houston, Atlanta, New Jersey, New York, and Philadelphia. Nagarajan says the startup is projected to be profitable by the end of the calendar year. Gladful has no immediate plan for category expansion, but eyes the snacking segment for future growth opportunities.

Challenges

While demand growth appears promising for India’s protein product sector, key challenges include ensuring accessibility, affordability, and awareness of high-quality protein sources. Urban consumers have better access to premium protein products, but mass adoption is slower in Tier 2 and Tier 3 cities. There is also a need for cost-effective, culturally familiar protein products to drive wider acceptance, says Ankita Vashistha, founder of the fund house Arise Ventures.

Additionally, there is a growing demand for protein products tailored to suit a range of needs — from endurance athletes to young children and senior citizens. According to the Indian Council of Medical Research (ICMR), the recommended daily protein intake for children aged 10-12 is approximately 27 g for girls and 32 g for boys. For those aged 16-18, the requirement increases to 46 g for girls and 55 g for boys.

From his startup’s perspective, Sinha points to additional hurdles — although plant-based meat is a new category, the company is unable to undertake large-scale awareness campaigns since the initial investment remains low in India. Furthermore, many venture capital and private equity firms benchmark their investments against Western markets like the US and Europe, limiting domestic innovation, he says.

Kumar Gaurav, co-founder of Twiddles, a ‘nutritious snacks’ brand, adds that gaining visibility in crowded e-commerce and offline shelves is a key challenge, alongside securing quality ingredients.

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