Danone sees growth in high-protein products sales

FRANCE  –  As Danone is observing an increase in yogurt sales in Europe and the USA driven by High-protein yogurts, it is intensifying its focus on high-protein dairy products to cater to evolving consumer preferences.

According to Shane Grant, the company’s deputy CEO, and Pablo Perversi, president of Europe, the company’s EDP (essential dairy and plant-based) portfolio has recently returned to growth, with protein-rich product sales being one of the main reasons behind the resurgence.

Grant revealed that high-protein dairy represents a US$64.5 billion opportunity, growing at high single-digit rates. Protein-rich yogurt and desserts form a US$9.6 billion market, growing at double-digit rates.

He added that consumer interest in protein is also strong, with 84% of health-conscious shoppers and 64% of the general population actively adding protein to their diets, marking a 10% increase since 2021.

“Today, more than eight health-conscious consumers out of 10 declare their interest in the quantity and the quality of proteins in their diets,” he said.

“This increase is because protein cares for many needs, from proactive to reactive health. And these needs are relevant not only across all life stages, from childhood development to active adults and healthy aging but across multiple lifestyles.”

According to Danone,  protein is a durable growth opportunity in the food and beverage sector, catering to needs ranging from fitness and performance to weight management and wellness.

The company’s high-protein strategy aims to refine and expand its offerings to meet these diverse consumer demands. One key area of focus is low-sugar, high-protein formulations.

Meanwhile, Danone’s US yogurt brand, Too Good, has become its most successful new brand in a decade due to its low-sugar, high-protein content. The company plans to expand this brand with new products like zero-sugar, mix-ins, fruit on the bottom, smoothies, and yogurt pouches for kids.

In Europe, particularly in France, the Skyr brand is experiencing a resurgence, supported by a marketing campaign timed with the Olympic Games in Paris.

The Skyr range, positioned as fat-free and protein-rich, includes drinkable and spoonable formats in various fruit flavors. Danone’s high-protein performance portfolio has doubled in net sales over the past three years, growing from US$430.3 million in FY21 to over US$1 billion.

Danone aims to optimize and expand its Oikos Triple Zero and Pro offerings in the US, which have driven sales growth in recent years.

This includes new recipes for Triple Zero and stronger messaging about Pro’s focus on boosting strength. Additionally, the snacking yogurt range, Remix, is being optimized to maximize consumption occasions.

Grant concluded by emphasizing the importance of execution fundamentals and expanding the reach of Danone’s protein platform. In the last 18 months, the company has introduced its Pro platform in 13 new countries, demonstrating its commitment to scaling its protein business.

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