After three years, can this cooperative titan outmuscle nimble protein startups and transform protein into a household staple, particularly in India’s Tier 2 and Tier 3 cities?
Eighty years after India’s White Revolution, Amul has grown into one of the world’s largest milk producers, transforming India from a milk-deficient country into the largest producer globally. Today, with a daily milk procurement of over 270 lakh litres and a retail footprint spanning more than 50 lakh outlets, Amul is not merely a brand but an institution woven into the fabric of Indian households. Despite this abundance of dairy, India faces a significant nutritional challenge.
Research suggests that 73% of Indians are protein deficient, and only 9% are aware of their deficiency. Protein, an essential macronutrient for muscle development, immunity, and overall health, continues to be poorly understood and insufficiently consumed, especially outside urban and fitness-focused circles. Amul saw an opportunity in this protein deficiency and entered the $1.52 billion (2025) space in 2022 with a wide range of products, ranging from protein lassi to protein kulfi.
After three years, can this cooperative titan outmuscle nimble protein startups and transform protein into a household staple, particularly in India’s Tier 2 and Tier 3 cities?
After failing to make a significant mark in a dedicated high-protein product line, in 2025 it launched high-protein mango kulfi (10 grams of protein per 60-gram pack at Rs 40) and protein-rich lassi (15 grams per 200 ml at Rs 30), signalling a bolder ambition.
Amul’s strategy is clear, it wants to target the masses, unlike the startups, which are targeting gym-goers. It’s being diligently done by embedding protein in everyday foods like buttermilk, shakes, and paneer. It wants to integrate protein into familiar Indian formats, minimising dietary shifts, notes a comprehensive market analysis.
Its pricing is a disruptive force: whey protein at Rs 2.67 per gram undercuts competitors like Optimum Nutrition (Rs 5.08 per gram) and MuscleBlaze (Rs 3.43 per gram), while protein shakes at Rs 2.50 per gram of protein beat MuscleBlaze’s Rs 3.96.
This aggressive pricing, enabled by Amul’s cooperative model and scale, poses a formidable challenge to startups like MuscleBlaze, Bigmuscles Nutrition, and Yoga Bar, which have cultivated niche markets among fitness enthusiasts. “Amul’s entry is a strong endorsement of the protein nutrition space in India,” says Shivam Tyagi, Co-Founder of Fytika, told financialexpress.com. Startups, reliant on premium pricing and third-party suppliers, face margin pressures. “Pressure on margins is expected with a big player entering the space,” Tyagi admitted.
Nikunj Biyani, Co-Founder of SuperYou, echoes this sentiment: “Amul’s entry into the market is not a threat but a validation of the space we’ve been building.” Yet, Amul’s distribution network, spanning over 1 million retailers and 18,700 villages, dwarfs the capabilities of most startups. This infrastructure gives Amul a clear advantage in penetrating Tier 2 and Tier 3 cities, where health awareness is rising but price sensitivity dominates. Surveys reveal that Tier 2 cities show stronger recognition of high-protein snacks like almonds than metros, and Tier 3 cities are increasingly buying nutrient-dense foods online. Amul’s high-protein paneer (25% protein, Rs 150 for 205 grams) and affordable pack sizes align with these markets’ needs, ensuring accessibility even in towns with populations as small as 5,000.
Yet, startups aren’t standing still. To survive, they’re doubling down on differentiation. “Our innovative pipeline features functional protein blends, immunity enhancement, and precision nutrition for women,” Tyagi said. SuperYou emphasises “high-quality, non-dairy protein solutions” to tap vegan and lactose-intolerant segments, areas where Amul’s dairy-centric portfolio may lag. “While Amul is expanding beyond dairy, its core strength remains deeply rooted in dairy products,” Biyani noted.
Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon, offers a broader perspective: “If the protein is getting carried through the product, then yes, it will penetrate tier two, tier three everywhere. But if it is a supplement, it is still a tier one phenomenon.” He points to cultural barriers, noting India’s slow adoption of functional foods and a preference for natural sources like dal. “India has not been a pill-popping or enhanced specialised nutrition country so far,” he said, suggesting that Amul’s success in Tier 2 and Tier 3 cities hinges on embedding protein in familiar formats rather than supplements.
Amul’s challenge lies in reshaping its dairy-centric image and ensuring that taste aligns with consumer expectations, as social media buzz indicates mixed reactions to protein-enriched products’ flavour profiles. Competition from FMCG giants, alongside specialised brands like Optimum Nutrition, adds pressure. Still, Bhattacharya predicts “20% growth or 25% growth” for the protein category, driven by unmet demand and players like Amul raising awareness.
As Amul scales production and leverages its brand trust, it could redefine India’s protein landscape, making it more accessible in smaller cities. Startups, however, must innovate or risk being sidelined. For now, the protein war is on, and India’s health-conscious consumers stand to gain. As Bhattacharya notes, the journey is generational, but with Amul leading the charge, India’s protein revolution is gaining momentum, promising healthier diets for millions.
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