From India to Japan: What’s happening in the functional protein space?

Protein powder in scoop and plastic jar on a blue background.
Protein powder is a conventional way for supplementing protein, but new formats such as protein water and protein-rich yogurt are gaining traction in the mass market. (Getty Images)

From India to Japan, protein is fast becoming a staple in functional food products, with consumer-packaged goods companies incorporating it into their products or investing in smaller outfits specializing in protein products.

In the health supplements space, protein is often used in sports nutrition and products supporting muscle health in seniors.

In recent years, however, there has been renewed interest in protein – not necessarily for hardcore sportsmen, but the public engaged in active lifestyles.

The protein boom was particularly pronounced in India in the past one to two years. From dairy giant Amul to influencer Revant Himatsingka, also known by the moniker Food Pharmer, new protein launches are hitting the market at an exponential pace.

Outside of India, Japan and Australia are the other Asia-Pacific markets with a growing high protein market, Danone pointed out in its FY25 financial results on February 20.

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High protein, gut health, infant formula and medical nutrition were highlighted as the French multinational’s fast-growing platforms for FY25.

“Starting with high protein, our rapidly expanding range built on the strong product superiority and differentiated functional benefit continues to drive penetration across geographies, supported by the ongoing rollouts of innovations,” said CEO Antoine de Saint-Affrique.

In fact, the company sees both protein and fiber as long-term growth opportunities.

“Protein, for instance, are essential for good health at every stage of life and demand continues to rise, particularly among people using GLP-1 who are actively seeking ways to preserve strength,” de Saint-Affrique said.

Protein trends: To be driven by higher loads and different formats?

In Japan, Danone is prioritizing high protein load for its upcoming new RTD protein beverage launch under the brand Oikos. At the same time, dosage format is also offering opportunities for protein R&D.

To launch in convenience stores nationwide from March 2, the product, Oikos PRO Protein Drink Highly Absorbable Protein 25g is targeted at individuals engaging in high-intensity exercise, such as strength training.

Containing 25g of protein per 240ml, this is said to be the highest amount of protein in Oikos history. The zero fat and no added sugar product also contains nine essential amino acids that cannot be synthesized in the human body but are needed for post-exercise recovery and body building, as well as vitamins B1, B6 and D.

According to Danone, this group of individuals have a high demand for 20g or more of protein after exercise, which was a reason for developing this new product.

The latest version is an upgrade to its Oikos Protein Drink launched in 2024 which contains 18g of protein per 240ml packet.

This is the second protein food launched by Danone in Japan this year. In January, the company also launched a mixed berry flavor of its Oikos protein yogurt which contains 10.1g of protein.

While protein supplements have typically come in the form of powders and RTD beverages, Danone believes that there are opportunities for a wider variety of product formats.

“We still see the growth in the protein world being very, very dynamic. If you look at the overall category growth of the yogurt category, it’s very dynamic. At the global level, it is in high single digits, and it’s being driven by protein. Protein, by the way, takes different forms,” de Saint-Affrique said in response to queries from analyst after FY25 financial results presentation. “There is a deep, deep trend around protein in different forms. And we believe that our trend is here to stay. It is also becoming more sophisticated. It’s not protein for the sake of protein, but protein that’s doing something or protein that are complemented with something.”

Pure Protein Powder. Food additive on grey surface. Whey Protein promotes the growth of muscle tissue, used for healthy smoothies and fitness drink. Wooden spoon and White Plastic letters.
India’s protein supplement market was valued at approximately US$860 million in 2024 (ALEKSEI BEZRUKOV/Getty Images)

Protein boom: A result of improved production capability and localized variants?

In India, the protein sector has grown rapidly partly due to businesses ability to manufacture protein powders locally, instead of having to import from overseas.

“Earlier on, India was not in a position to manufacture protein powders locally and have to import protein powders from the US, but now, a lot of innovations are taking place locally,” Former Food Safety and Standards Authority of India (FSSAI) director Pradip Chakraborty told NutraIngredients.

A notable example is third-party manufacturer Tirupati Life Sciences, which is known as the manufacturer of Optimum Nutrition’s whey protein powder in their manufacturing facility at Paonta Sahib, India.

While protein is usually associated with sports nutrition, there is a trend of companies fortifying protein into everyday food products in India. Dairy giant Amul, for example, has launched high protein wheat flour, as well as a line of protein milk, protein lassi, and protein shake.

Another brand, Only What’s Needed (OWN), founded by Revant Himatsingka, also an influencer known as Foodpharmer who shot to fame through his nutrition labelling exposé, has also launched a series of whey protein concentrate and isolate powder products.

Earlier this year, a series of merger and acquisition led by FMCG firms also targeted companies specializing in functional protein, especially plant-based protein as seen in the case of Cosmix which was acquired by Marico and OZiva which was bought over by Hindustan Unilever.

It is also the localization of protein products that has increased protein uptake among Indians, according to India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce under India’s Ministry of Commerce and Industry.

“Price perceptivity remains another challenge as imported protein powder supplements are costly which opens a window for affordable sachets, Indianized variants such as protein‑fortified lassi or atta, particularly in tier-2 and tier-3 cities,” the IBEF said in an October 2025 report. “Meanwhile, support mechanisms from Start-up India and Production linked incentive (PLI) schemes for the food processing sector are enabling domestic production of whey protein, plant based, and alternative protein variants at lower costs,” the report added.

Despite the boom in functional protein launches, Chakraborty believes that there is still further room for growth and the market has not yet reached the point of saturation.

“The protein sector in India is a very big market, and it is nowhere near saturation. There is enough scope for other companies to manufacture and sell protein in the domestic market or even export their products overseas,” he said, highlighting that protein powder was still the dominant format.

India’s protein supplement market was valued at approximately INR74.6bn (US$ 860 million) in 2024 and is projected to grow to INR131.9bn (US$ 1.52 billion) by 2033, with increasing demand across age groups, according to IBEF.

Aside from growing demand for plant-based proteins, there is also rising consumer interest in flavoured and ready-to-drink options and clean-label products. Regional adoption is also rising, expanding the India protein supplement market to tier-2 and tier-3 cities.

Protein’s future: Meeting consumers at any time they want?

According to Australian firm Elixinol, growth in the functional protein sector would come from meeting consumers at the right time – or rather, anytime that they would want to drink it.

This was why the company has launched three protein waters under its The Healthy Chef brand last year, as this is an option that consumers can go to at any time of the day.

“Alongside the GLP-1 shift, we’re seeing a strong demand for lighter ways to consume protein. Consumers are moving away from heavy shakes and towards clean, drinkable formats that support hydration and daily protein intake,” said Natalie Butler, executive director and head of marketing at Elixinol during the company’s FY25 results presentation.

In Australia, protein water has become one of the fastest growing protein segments, growing at 8.3% CAGR and is forecast to reach 1.1 billion by 2034, the company said.

“With three premium functional protein water products now in market, The Healthy Chef is well positioned at the intersection of hydration, protein and wellness, capturing consumers seeking lighter, cleaner and more convenient nutrition,” the company said in its chairman report last year.