Washington: Surging consumer demand for high-protein foods and beverages is opening major growth opportunities for the U.S. dairy industry, according to a new report from CoBank’s Knowledge Exchange. As more Americans prioritise protein in their diets, dairy products and dairy-based ingredients are increasingly being positioned as key solutions for both consumers and food manufacturers.
Traditional dairy products such as milk, cheese, yoghurt and cottage cheese are benefitting from this trend due to their naturally high protein content and superior nutritional profile. Beyond the retail dairy case, dairy-based ingredients are now being widely used to boost protein levels in products ranging from baked goods and protein bars to ready-to-drink protein shakes and whey powders.
“The dairy industry is in a great position to help consumers meet their protein intake goals,” said Corey Geiger, Lead Dairy Economist at CoBank. “Dairy products contain all nine essential amino acids, making them a complete protein source.”
Protein Craze Reshaping Consumer Choices
Consumer interest in protein has risen sharply in recent years. According to the International Food Information Council (IFIC):
- In 2022, 59% of Americans said they were trying to consume more protein.
- In 2023, this rose to 67%.
- By 2025, seven in 10 Americans wanted higher protein in their diets.
“Protein is top of mind for consumers making better-for-you purchases,” said Billy Roberts, Senior Food & Beverage Analyst at CoBank. “Dairy’s inherent benefits make it well-positioned, especially for consumers focused on weight loss or following the new dietary guidelines.”
New Dietary Guidelines and GLP-1 Drugs Fuel Demand
Momentum has further accelerated following the release of updated U.S. Dietary Guidelines for Americans on January 7, which increased the recommended protein intake for adults from 0.8 grams to 1.2–1.6 grams per kilogram of body weight.
At the same time, the growing use of GLP-1 weight-loss medications is boosting interest in protein-rich foods. Data from KFF shows that 12% of U.S. adults were taking GLP-1 drugs as of November 2025, a figure expected to rise with the launch of cheaper pill-based versions.
A Cornell University study found that GLP-1 users are spending more on yoghurt, fruits and vegetables, meat snacks and protein bars. Reflecting this shift, Danone, maker of Oikos Greek yoghurt, reported double-digit growth in its high-protein dairy offerings.
Premium Pricing and Retail Transformation
Food and beverage products carrying high-protein label claims can command price premiums of up to 12%, according to estimates from Circana and other market research firms, adding a strong financial incentive for manufacturers.
“This transformation in retail represents a long-term opportunity for dairy processors and food manufacturers alike,” Geiger said.
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Snacks and Protein Shakes: Key Growth Segments
Although snacking has grown steadily for decades, protein has not yet become a primary driver in snack purchases. Only 17% of consumers currently prioritise protein when choosing snacks, creating a new opening for dairy-based innovation.
Ready-to-drink protein shakes are emerging as a standout category. While fluid milk sales have remained sluggish, Circana data shows:
- Protein shake sales surged 71% over the past four years
- Market value grew from $4.7 billion to $8.1 billion
With demand expected to keep rising, dairy proteins are increasingly being used to create high-protein, low-sugar and clean-label products.
“The amino acids in dairy products will create even more opportunities for dairy as stand-alone products and ingredients,” Geiger added.
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