Rising Protein Demand Creates Long-Term Opportunities for U.S. Dairy
HART Insight Summary
Rising demand for protein is emerging as a long-term growth driver for the U.S. dairy industry, according to a new report from CoBank’s Knowledge Exchange. Consumer interest in protein forward foods is expanding across age groups and food categories, reaching well beyond traditional dairy into snacks, beverages, and functional foods.
New dietary guidelines, increased use of GLP-1 weight-loss medications, and strong retail performance of high-protein products are reinforcing this momentum. For dairy processors, the trend highlights sustained demand for dairy-based proteins such as whey, casein, and milk powders, as well as opportunities tied to value-added formats that command price premiums. While consumer motivations vary, the underlying signal points to continued relevance of dairy ingredients in evolving food and beverage portfolios.
Key Takeaways
• Consumer demand for protein continues to rise across multiple demographics and food categories.
• Dairy-based proteins such as whey, casein, and milk powders are increasingly used beyond the traditional dairy case.
• Updated dietary guidance and increased use of GLP-1 medications are contributing to a shift toward higher-protein food choices.
• High-protein products often carry measurable price premiums at retail.
• Snacks and ready-to-drink beverages represent significant areas of growth for protein-focused innovation.
At A Glance
Estimated Reading Time: 5 minutes
Original Publish Date: January 2026
Source: Farms.com
CoBank report shows soaring protein demand, new dietary guidelines, and GLP 1 weight-loss trends driving long-term growth for dairy.
Consumer appetite for high-protein foods and beverages continues to soar across the United States, and the trend is beginning to reshape the retail grocery landscape. According to a new report from CoBank’s Knowledge Exchange, the sharp rise in protein-centric shopping habits is pushing food and beverage manufacturers to expand their portfolios — and positioning the U.S. dairy sector for significant long-term growth.
From baked goods and sports nutrition shakes to protein bars and snack products, dairy-based ingredients are increasingly being used to boost protein content and meet shifting consumer expectations.
“The dairy industry is in a great position to help consumers meet their protein intake goals,” said Corey Geiger, lead dairy economist with CoBank. “Dairy products have a unique advantage because they contain all nine essential amino acids required in a human diet, making it a complete protein source.”
Geiger says processors that already supply dairy proteins such as whey, casein, and milk powders are well positioned as food developers continue to integrate dairy ingredients into product categories far beyond the traditional dairy aisle.
More Americans Want More Protein
Protein’s popularity continues to accelerate across nearly every age group. According to the International Food Information Council (IFIC):
- In 2022, 59% of American consumers tried to increase dietary protein.
- By 2023, that number climbed to 67%.
- In 2025, 70% of consumers reported wanting more protein in their diets.
“Protein is top of mind for consumers in making a better-for-you purchase,” said Billy Roberts, senior food and beverage analyst with CoBank. “Dairy products’ inherent benefits position them well to resonate with consumers, particularly those adjusting their diets for weight loss or to abide by the recently announced Dietary Guidelines.”
New Dietary Guidelines and GLP 1 Weight-Loss Drugs Boost Demand Further Several external forces are amplifying protein demand:
- New U.S. Dietary Guidelines (Published Jan. 7) — The recommended daily allowance of protein for adults was increased from 0.8 g/kg of body weight to 1.2–1.6 g/kg — a 50–100% jump.
- Growing Use of GLP 1 Weight-Loss Medications — Medications like Ozempic and Wegovy have shifted eating habits toward:
- Higher-Protein Foods
- Yogurt
- Fresh Produce
- Protein Bars & Meat Snacks
According to KFF, 12% of U.S. adults were using GLP 1 medications as of November 2025 — a number expected to rise sharply as cheaper pill versions launch this year.
A Cornell University study found that GLP 1 users increased spending on yogurt, fruits, vegetables, protein bars, and meat snacks. Danone, maker of Oikos Greek yogurt, has also reported double-digit growth in its high-protein products, with trends accelerating alongside GLP 1 adoption.
High-Protein Products Bring Something Else: Price Premiums Beyond nutritional demand, there is strong financial motivation for manufacturers.
Products with a “high-protein” label can command a price premium of up to 12%, according to estimates from Circana and other research firms. This makes protein not only a health trend but also a revenue driver for brands. Snacks and Ready-to-Drink Shakes Represent Key Growth Categories.
Although snacking has surged for decades, only 17% of consumers say they prioritize protein when choosing a snack, according to IFIC. CoBank sees this as a major opening for both dairy processors and food brands.
High-protein snacks made with dairy ingredients could:
- satisfy consumer interest in health
- support satiety
- meet rising convenience demands
Meanwhile, ready-to-drink (RTD) protein shakes remain one of the fastest-growing categories in the store.
Circana data shows:
- RTD protein shake sales have climbed 71% in four years
- Revenues grew from $4.7 billion to $8.1 billion
- Continued growth is expected
Dairy Positioned For A Long-Term Retail Transformation
“The amino acids in dairy products will create even more opportunities for dairy as stand-alone products and ingredients,” Geiger added. “Ultimately, this transformation in the retail space represents a significant, long-term opportunity for dairy processors and food manufacturers alike.”
With higher protein recommendations, shifting health habits, a booming snack market, and strong price premiums, CoBank concludes that dairy is uniquely positioned to become a central player in the next wave of protein-focused innovation.
HART Perspective
Sustained protein demand reinforces the importance of reliable, scalable dairy processing systems capable of supporting a wide range of product formats and ingredient applications. As protein is added to more categories beyond traditional dairy, processors may encounter new operational challenges related to ingredient handling, consistency, and throughput. Growth in protein-focused snacks, beverages, and ingredients can place new demands on drying, blending, forming, and packaging operations, particularly where precision and repeatability are required. While market drivers continue to evolve, the ability to maintain consistent performance across higher-value products remains a key operational consideration for dairy and cheese plants.
What This Means for Dairy & Cheese Processors
• Growing protein demand reinforces the long term relevance of dairy based ingredients across a wide range of food categories.
• Expanded use of dairy proteins may increase operational complexity and SKU diversity.
• Higher-value protein formats typically require more precise quality control and consistent processing performance.
• Flexible production systems can help processors adapt to evolving product mixes and formats.
Attribution
This article references industry reporting and data originally published by Farms.com. HART Design & Manufacturing has added independent analysis and dairy-processing context. The original publishers did not contribute to or review these additions.
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Source: Farms.com
