F&B chains and dairy majors forge supply deals and expand capacity as India’s protein market heads toward ₹21,000 crore.
A structural surge in Indian consumer demand for protein-fortified daily staples has triggered a wave of commercial partnerships across leading food and beverage operators and café chains, even in the face of ongoing global supply shortages and a fourfold increase in whey protein prices. As reported by The Economic Times, the consumption of protein has broken out of the traditional bodybuilding niche to become an everyday dietary habit for millions of urban consumers. Market research firm IMARC valued India’s total protein market at approximately ₹15,300 crore in 2025, projecting it to expand to ₹21,000 crore by 2031.
To capture this momentum, prominent retail café chains have rolled out specialized beverage collaborations. Tiger Global-backed tea café network Chaayos partnered with Wholsum Foods (the maker of Slurrp Farm) to launch functional teas formulated with its protein brand Mille. Simultaneously, the Indian subsidiary of Tim Hortons formed a direct supply alliance with dairy giant Amul to roll out ready-to-drink protein coffees, while rival Tata Starbucks teamed up with snack brand SuperYou to introduce protein-infused cold foam toppers.
Industry investors attribute the surge to shifting lifestyle priorities and emerging wellness trends. According to Kannan Sitaram, managing partner at consumer-focused venture capital firm Fireside Ventures, dietary awareness has expanded beyond fitness centers into household kitchens. Additionally, the rising adoption of GLP-1 weight-loss and diabetes treatments across urban centers has created secondary demand for high-protein foods, as patients actively seek to counteract muscle mass loss and fatigue associated with rapid calorie deficits.
The demand spike is driving aggressive capital investment across domestic dairy and food manufacturing supply chains. Value-added dairy processor Parag Milk Foods recently expanded into the protein-snacking segment, while newly listed dairy manufacturer Milky Mist commissioned a ₹40-crore processing facility in Tamil Nadu specifically engineered to produce high-protein Skyr and Greek yogurt. Milky Mist CEO K. Rathnam highlighted that high-protein dairy nutrition has successfully transitioned from an experimental niche into a dominant, mainstream purchasing trend.
Concurrently, corporate consolidation and venture funding in the protein ecosystem are accelerating. Established FMCG conglomerates are actively evaluating tuck-in acquisitions, with at least four digital-first protein brand transactions currently underway. Recent notable deals include Hindustan Unilever completing its 100% buyout of plant-based wellness brand Oziva, Marico acquiring Cosmix, pharmaceutical firm USV taking a 79% majority stake in Wellbeing Nutrition for ₹1,583 crore, and dairy startup Provilac raising $14 million from Panthera Growth Partners to scale its high-protein milk and dairy portfolio.
Source: The Economic Times
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