In today’s Finshots, we tell you why Indian FMCG (Fast Moving Consumer Goods) companies are chasing protein packed foods.

But before we begin, if you love keeping up with the buzz in business and finance, make sure to subscribe and join the Finshots club, loved by over 5 lakh readers.

Already a subscriber or reading this on the app? You’re all set. Go ahead and enjoy the story!

The Story

Ever thought eating kulfi would help you hit your protein target for the day? 

Well, me neither. 

But Amul recently launched a high-protein version of their iconic Kulfi, which contains 10 grams of protein. And it’s not just the ice cream. Amul now has protein buttermilk, protein lassi, protein curd, and even protein paneer! 

And this is not an isolated trend; companies like Britannia have also joined the bandwagon with high-protein bread, biscuits, etc.

So yeah, protein ― which was mostly the domain of gym bros on social media and nutritionists until recently, has now become the talk of the town. Everyone from my neighbour uncle to my manager has been talking about it. And FMCG companies have also noticed this trend. 

And that makes us ask ― What’s really powering this protein rush?

To begin with, most Indians just aren’t getting enough of it.

You see, the ICMR recommends that an average adult consume 60 grams of protein per day. But the actual median consumption is only 37 grams per day for urban Indias. That’s a big gap. This protein deficiency causes serious problems, such as malnutrition. For instance, India has high rates of child stunting and underweight adults. This can partly be attributed to Protein-Energy Malnutrition. Even those who appear well-fed may have latent protein deficiencies that affect their muscle health and immunity. 

And this gap is exactly what companies are rushing to occupy with high-protein counterparts of their best-selling products. Because for them, this hits two birds with one stone.

How’s that, you ask?

First off, with the growing awareness of protein deficiency, people are actively looking for ways to increase their intake. But not everyone wants to have 6 boiled eggs a day or purchase expensive protein powders. Instead, if the same curd, paneer or kulfi that you have every day comes with a high-protein label, you’re far more likely to purchase it. 

And that’s a no brainer upgrade. Companies see an opportunity to create products that help bridge the protein gap. If Indians chronically lack protein, there’s a ripe market for foods that promise an easy protein boost, especially when those foods are familiar, tasty and don’t require significant lifestyle changes. 

Which also brings us to reason #2 — what sparked this surge in demand?

Well, a big factor is rising per capita income. 

In 2024, Indians spent approximately 11–14% of our grocery bills on protein-rich items. For perspective, Americans spent around 18% in 2023.

Historically too, India lacked protein for one major reason ― cost. Protein-rich ingredients are far more expensive than their starch-based counterparts. For decades, companies and consumers in India took the cheaper route because the country’s per capita income was low. This led to products that were heavy on carbs and starch. In fact, many restaurant items that appear protein-rich, such as paneer, are often adulterated with starch and vegetable oils. But as the country’s middle class and incomes grew, more people became willing to spend extra on healthy products.

In fact, a 2024 survey estimated that over 70% of Indians now read product labels, and 93% are willing to spend more and switch to healthier alternatives. Naturally, the FMCG companies see a golden opportunity here – why sell a product for ₹20, when you can sell a high-protein, healthier variant for ₹30 or ₹40?

And the best part is that people buy it. We’ve already seen this play out in the snack category. Kurkure now has a premium version called Lehar Kurkure. While the product itself is similar (Sorry, exactly the same, but in different packaging), it is sold in high-traffic areas like malls and metro stations, which allows PepsiCo to earn more revenue without altering the product itself.

This is because when something is positioned as ‘better’ or ‘healthier’, it taps into the consumer’s instinct to be okay with spending a little extra. So, from the company’s point of view, it doesn’t just solve a nutritional problem, but also generates more revenue.

This is also why many startups in the past few years have emerged to address the issue of access to healthy food. They’ve spent big on marketing to educate masses, create a category and cash in on the trend. And with many increasingly becoming health conscious, these companies offer convenient alternatives such as protein bars, muesli and ready-to-mix shakes. They advertise protein not as a nutrient, but as a lifestyle. And it’s working. Protein-rich snacks, which were once seen as niche products, are now sitting comfortably on supermarket shelves, where anyone can purchase them. 

So, right now, it is probably worth asking: Are these products actually fixing India’s nutrition problem, or just monetising it? 

Well, on the one hand, any increase in protein intake is beneficial in a country where deficiency is rampant. If a person chooses a protein bar or protein lassi over a chocolate bar or milkshake, they will get a few extra grams of protein that day. Over time, that could help close the gap.

However, many high-protein products still contribute only a fraction of daily needs. 

A 60g Amul Protein Kulfi contains 10g of protein – great for an ice cream, but 10g is only about 15–20% of an average adult’s daily protein requirement. One kulfi won’t bridge the deficiency by itself. And most people won’t be having six kulfis a day to hit 60g, no? Similarly, Britannia’s protein bread may provide 3g of protein per slice, compared to 2g in regular bread. If you eat two slices, that extra 2g or so of protein won’t move the needle much.

And then there’s another problem…

While we are all focusing on protein, many ‘high protein’ snacks may still contain a lot of sugar, carbs and fat. If these other macros also increase in proportion, you’ll only have swapped one imbalance for another, and your waistline won’t thank you. This is called the ‘health halo’ effect, wherein people perceive something as ‘healthier’ based on just one positive claim, even if the overall nutritional profile is not as favourable.

And lastly, having the same food over and over again makes your palate rebel after a while. Anyone who has tried sticking to a particular diet would agree with me here. If hitting that 60-gram protein mark means having the same food every day, people will fall off the wagon long before their muscles thank them.

So yeah, the bottom line is that most of us lack protein, and companies are trying to bridge this gap, but it won’t happen overnight. Right now, we’re seeing a lot of noise and flashy packaging, but the winners in this race will be companies that can: 

1. Actually help you hit the protein threshold 
2. Without flavour fatigue
3. At a reasonable price

If companies can’t pull this off, this risks going the way of 2016’s ‘baked, not fried’ fad.

Until then, enjoy your kulfi – just don’t solely count on it to meet your protein target for the day.

And don’t forget to share this story on WhatsApp, LinkedIn and X.

Note: An earlier version of this story incorrectly mentioned that urban Indians consume 37 grams of protein on average per day. However, it's 37 grams of 'median intake' for urban India. We've updated the story to reflect this.

Only 17% of millennials have a term plan❗

Here’s why getting a term plan early can do wonders for you & your family:

✅Protection: Simply put, term insurance is where you pay a small amount of money in exchange for a large amount of protection. This protection usually kicks in in the event the policyholder passes away.

But not just that, if you ever develop a critical illness (eg. cancer) and have to quit your job, a term plan can give you a lump sum amount to make up for the lost income.

✅Secure Your Parents: As your parents near retirement, they may start to rely on your income. And so, a term plan will give you peace knowing that they'll be financially supported even in your absence.

✅Low Premiums Forever: A term plan of ₹1 crore will cost you much lower premiums at 25 years than at 35. You can even get a ₹1 crore cover for as little as ₹10,000 a year if you are young and healthy. Plus, once these premiums are locked in, they remain the same throughout the term!

So don’t delay it! As they say, “The best time to buy term insurance was yesterday; the next best time is today.”

Click here to book a FREE call with Ditto Insurance’s certified advisors and get your personalised term insurance guidance.