Ready-to-drink (RTD) Protein Beverages Market

• In May 2023, Upbeat Drinks Ltd. launched a new Sour Berry Protein Energy ready-to-drink caffeine and protein blend. The non-carbonated, clear whey isolate bottled drink contains all nine essential amino acids, 4000 mg BCAAs, and Vitamin B complex. It expanded the product portfolio of the company.

• In March 2023, Premier Protein, which is a brand of BELLRINGS BRANDS, INC. (BRBR), with the introduction of its NEW Plant Protein Powder, entered the vegan protein market with its well-liked taste, reasonable price, and understandable nutritional credentials. This sort of product launch will attract a new consumer base.

• In June 2022, Evolve announced a fresh program intended to maintain the environment while offering all people access to the outdoors. The 'Plant-Based for the Outdoors' commitment consists of three main areas of focus: updating product packaging to include more plant-based materials, sourcing sustainably-raised peas for Evolve protein shakes, and collaborating with nonprofit One Tree Planted to make cities like New York City, Los Angeles, and Chicago greener. The campaign starts on June 5, 2022, which is World Environment Day. This sort of initiative has helped the company to gain more consumer attention and a new consumer base.

The global ready-to-drink (RTD) protein beverages market is segmented by product, sugar count, and packaging type, each catering to different consumer preferences and dietary needs.By product, the market is divided into whey-based, milk-based, and other RTD protein beverages. Whey-based protein beverages dominate the market due to whey’s high protein content and fast absorption rate, making it a popular choice among athletes and fitness enthusiasts. Whey protein is easily digestible and supports muscle recovery and growth, which contributes to its widespread use. Milk-based protein beverages are growing in popularity, especially among consumers looking for a more balanced source of protein that also includes additional nutrients such as calcium and vitamins. Milk-based protein drinks are often perceived as more natural and less processed compared to other protein sources. Other RTD protein beverages include plant-based options made from ingredients such as soy, pea, or rice protein. These alternatives are gaining traction as the demand for vegan and lactose-free products increases, reflecting a broader consumer shift towards plant-based diets and products.

In terms of sugar count, the market is segmented into low sugar, high sugar, and zero sugar beverages. Low sugar protein drinks are growing in popularity as health-conscious consumers seek to reduce their sugar intake. These beverages appeal to those who want to benefit from the protein without the added sugars, which are often associated with negative health effects such as weight gain and blood sugar spikes. High sugar protein drinks, while less popular than their low-sugar counterparts, still cater to those who prefer a sweeter taste and those seeking quick energy replenishment post-workout. However, the increasing focus on healthy lifestyles and weight management is steering consumers toward zero sugar protein beverages, which have become a significant segment in the market. These drinks provide the protein benefits without the concerns associated with sugar intake, making them particularly appealing to those on low-carb or ketogenic diets.

Packaging type is another key factor in the RTD protein beverage market, with bottles, cans, and cartons being the primary formats. Bottles are the most popular packaging due to their portability, convenience, and ease of use. They are commonly used for individual servings, catering to busy consumers looking for a quick protein boost. Cans are increasingly used in the RTD protein beverage market, particularly for energy or fitness-focused drinks, as they are easy to carry and offer a sleek, modern design. Cartons are often preferred for larger servings or family-sized protein beverages, providing convenience for home use. Cartons are also seen as a more eco-friendly option compared to plastic bottles and cans, aligning with the growing consumer demand for sustainable packaging.

In conclusion, the segmentation of the global RTD protein beverages market reflects the diverse preferences of consumers seeking convenient, nutritious, and tailored protein options. Whether it is the choice of protein base, sugar content, or packaging type, the market continues to evolve as consumers become more health-conscious and discerning in their beverage choices.

Global RTD Protein Beverages Segment Analysis

In this report, the Global RTD Protein Beverages Market has been segmented by Product and Geography.

Global RTD Protein Beverages Market, Segmentation by Product

The Global RTD Protein Beverages Market has been segmented by Product into Whey-based, Milk-based and Other RTD.

RTD protein beverages can be segmented based on the source of protein used in their formulation. This includes animal-based proteins such as whey, casein, and collagen, which are derived from milk, as well as plant-based proteins like soy, pea, rice, and hemp. Each protein source offers unique nutritional profiles and benefits, appealing to different consumer segments such as athletes, vegetarians, or individuals with lactose intolerance. Companies often highlight the protein source prominently on packaging to communicate product attributes and attract target consumers.

Another key segmentation criterion for RTD protein beverages is flavor variety. These products are available in a wide array of flavors to cater to diverse taste preferences and enhance consumer appeal. Common flavor options include chocolate, vanilla, strawberry, coffee, and fruit flavors like berry or tropical blends. Additionally, companies may introduce innovative and seasonal flavors to capitalize on consumer trends and maintain excitement around their product offerings. Flavor segmentation enables brands to target specific demographic groups and differentiate themselves in the competitive market landscape.

RTD protein beverages often incorporate additional functional ingredients to provide added health benefits beyond protein content. This includes vitamins, minerals, antioxidants, probiotics, and amino acids, among others. Segmentation by functional ingredients allows companies to create specialized products targeting specific consumer needs or wellness trends. For instance, products formulated with added vitamins and minerals may appeal to health-conscious consumers seeking nutritional supplementation, while those containing probiotics may target consumers interested in digestive health. By highlighting the functional benefits of their products, brands can effectively communicate value propositions and meet the evolving demands of the health and wellness market.

Segmentation by product attributes enables RTD protein beverage manufacturers to tailor their offerings to meet the diverse needs and preferences of consumers, driving market penetration and competitive advantage. By understanding the various segmentation dimensions, companies can develop targeted marketing strategies, product formulations, and packaging designs to effectively engage with their target audience and foster brand loyalty.

Global RTD Protein Beverages Market, Segmentation by Sugar Count

The Global RTD Protein Beverages Market has been segmented by Sugar Count into Low Sugar, High Sugar, and Zero Sugar.

Low sugar protein beverages are becoming increasingly popular among health-conscious consumers who are looking to manage their sugar intake while still benefiting from the protein content. These beverages appeal to those aiming for a balanced diet, especially individuals monitoring their blood sugar levels, such as people with diabetes or those following weight-loss regimens. Low sugar options are often marketed as a healthier alternative to traditional sugary drinks, making them ideal for fitness enthusiasts, athletes, and consumers focused on maintaining a healthy lifestyle. The demand for low sugar beverages is growing as consumers become more aware of the negative health effects of excessive sugar consumption, including obesity, cardiovascular disease, and metabolic disorders.

High sugar protein beverages, although less popular than low or zero sugar options, still have a market, particularly among consumers who prefer sweeter flavors. These drinks are often marketed towards athletes or individuals looking for an energy boost, as the higher sugar content can help provide quick replenishment of glycogen stores post-workout. However, due to the rising awareness of the negative health implications of high sugar intake, the demand for high-sugar protein beverages is somewhat constrained compared to other categories. These beverages may appeal to a smaller niche of consumers who prioritize taste and energy over lower sugar content, though this segment is being overtaken by healthier alternatives.

Zero sugar protein beverages have gained significant traction in recent years, driven by the increasing number of consumers adopting low-carb, ketogenic, or sugar-free diets. These beverages offer the protein benefits without the added sugar, making them particularly appealing to those looking to avoid sugar for health or dietary reasons. Zero sugar protein drinks have become a popular choice for consumers seeking to lose weight, maintain stable blood sugar levels, or adhere to low-sugar lifestyles. As the market for zero-sugar beverages expands, brands are increasingly formulating these drinks with natural sweeteners like stevia or monk fruit, further enhancing their appeal to health-conscious consumers who want to enjoy a sweet taste without the drawbacks of conventional sugar.

The segmentation of the global RTD protein beverages market by sugar count reflects a growing consumer preference for healthier, lower-sugar alternatives. The increasing demand for low and zero sugar options is indicative of a shift toward more health-conscious, sugar-conscious choices, while high-sugar drinks remain a niche segment catering to specific consumer tastes. As the market continues to evolve, the trend towards lower sugar content is expected to gain further momentum, driven by a combination of health awareness and dietary trends.

Global RTD Protein Beverages Market, Segmentation by Packaging Type

The Global RTD Protein Beverages Market has been segmented by Packaging Type into Bottles, Cans, and Cartons.

Bottles are the most popular and widely used packaging type for RTD protein beverages, primarily due to their convenience, portability, and ease of use. Bottles are typically made from plastic or glass, with plastic being the most common choice due to its lightweight and shatterproof qualities. They are ideal for single-serving sizes, making them perfect for on-the-go consumption, especially for busy professionals, athletes, and fitness enthusiasts. Bottles offer convenience in terms of resealing, which allows consumers to store leftover beverages. Additionally, the transparent nature of plastic bottles often appeals to consumers as it enables easy visibility of the product, contributing to brand recognition. The widespread availability of bottled protein drinks in supermarkets, gyms, and convenience stores further drives the demand for this packaging type.

Cans have seen a surge in popularity in the RTD protein beverages market, particularly due to their sleek, modern, and eco-friendly appeal. Cans are typically more compact and lightweight than bottles, making them even more convenient for consumers who prioritize portability, especially for on-the-go consumption. The rise in energy and fitness-focused RTD protein drinks has led to a preference for cans, as they provide a more premium, streamlined experience. Cans are also highly recyclable, which aligns with the growing consumer demand for sustainable packaging solutions. Brands targeting younger, urban demographics often opt for cans, as they are associated with convenience and are easy to carry during workouts or while commuting. Cans also have the advantage of offering superior protection against light and air, helping to preserve the quality and nutritional content of the protein beverage.

Cartons are becoming increasingly popular in the RTD protein beverages market, particularly for larger, multi-serving sizes. Cartons are often preferred for home use or by families, as they are typically available in larger quantities, offering better value for money. This packaging type is also seen as an environmentally friendly option due to its recyclable nature, making it attractive to eco-conscious consumers. Cartons are commonly used for milk-based protein beverages, which are often marketed as more natural or wholesome compared to other protein drinks. The lightweight and stackable nature of cartons makes them easy to store and transport, and their design often incorporates features such as resealable spouts or screw caps for added convenience. While cartons are less commonly used for single-serve, on-the-go protein drinks, they are an appealing option for consumers looking for larger servings or those who prefer packaging with a lower environmental impact.

Global RTD Protein Beverages Market, Segmentation by Geography

In this report, the Global RTD Protein Beverages Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global RTD Protein Beverages Market Share (%), by Geographical Region, 2024

North America is a prominent market for RTD protein beverages, driven by factors such as the strong health and fitness culture, increasing consumer awareness about the benefits of protein, and busy lifestyles. The region boasts a significant presence of key players offering a wide range of RTD protein beverage options to cater to diverse consumer preferences. Additionally, the growing popularity of on-the-go nutrition solutions and the adoption of wellness trends further fuel market growth in this region. However, competition is intense, with manufacturers continually innovating to differentiate their products and capture market share. Regulatory scrutiny regarding labeling, ingredients, and health claims also influences market dynamics in North America.
Europe represents another key region in the global RTD protein beverages market, characterized by a sophisticated consumer base, a penchant for healthy living, and a rising demand for convenient nutritional solutions. The market in Europe is shaped by evolving dietary preferences, with a growing emphasis on plant-based protein sources and clean-label formulations. Manufacturers in the region are leveraging these trends to introduce innovative RTD protein beverage products that resonate with health-conscious consumers. Moreover, the expansion of distribution channels, including online retail platforms and specialty health stores, enhances accessibility and drives market penetration. However, regulatory frameworks across European countries pose compliance challenges for companies operating in this region, necessitating careful product formulation and marketing strategies.
The Asia-Pacific region presents significant growth opportunities for RTD protein beverage manufacturers, fueled by changing consumer lifestyles, urbanization, and increasing disposable incomes. Rising health awareness, particularly in countries like China, India, and Japan, drives demand for functional beverages, including RTD protein drinks. Furthermore, the growing fitness industry, coupled with a surge in sports and fitness activities, propels market expansion in the region. To capitalize on these opportunities, companies are investing in product innovation, localization strategies, and marketing campaigns tailored to the preferences of Asian consumers. However, diverse regulatory landscapes, cultural nuances, and distribution challenges pose hurdles for market entry and expansion in the Asia-Pacific region, requiring careful market research and adaptation strategies.

This report provides an in depth analysis of various factors that impact the dynamics of Global RTD Protein Beverages Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Health and Fitness Trends
• Busy Lifestyles

• Innovation in Formulations - In response to evolving consumer demands and heightened health consciousness, RTD protein beverage manufacturers are undergoing a paradigm shift in formulation strategies. Beyond merely fortifying their products with protein, companies are embarking on a journey of enrichment, infusing their beverages with a diverse array of health-enhancing elements. These innovations extend beyond protein content to include a spectrum of supplementary nutrients such as vitamins, minerals, and functional additives like probiotics and antioxidants.

  This transformative approach represents a pivotal evolution in the RTD protein beverage landscape, as it mirrors the multifaceted health aspirations of modern consumers. By incorporating a broader spectrum of health-promoting ingredients, manufacturers are able to cater to a diverse array of consumer preferences and wellness goals. Whether targeting individuals seeking immune support, digestive health, or overall vitality, these value-added formulations are designed to resonate with a wide spectrum of health-conscious consumers, thereby propelling market expansion and diversification.

  The integration of supplementary health benefits into RTD protein beverages not only amplifies their nutritional profile but also elevates their perceived value in the eyes of consumers. This value proposition resonates deeply with individuals who prioritize holistic wellness and are seeking convenient yet comprehensive solutions to support their health goals. As such, the adoption of value-added formulations represents a strategic imperative for RTD protein beverage companies seeking to differentiate their offerings, cultivate brand loyalty, and capitalize on the burgeoning demand for functional, health-forward beverages in the global marketplace.

Restraints:

• Taste and Texture Challenges
• Price Sensitivity

• Competition from Alternative Protein Sources - Competition in the global RTD (Ready-to-Drink) protein beverages market is increasingly influenced by the proliferation of alternative protein sources. These alternatives, ranging from protein bars and shakes to natural food sources, present both challenges and opportunities for RTD protein beverage manufacturers.

  One significant competitor for RTD protein beverages comes from the wide array of protein bars available in the market. These bars offer a convenient and portable option for consumers seeking a quick protein boost, often with a variety of flavors and formulations to suit different tastes and preferences. As such, RTD protein beverages face competition not only in the beverage category but also within the broader protein snack segment.

  Protein powders and shakes represent formidable competitors to RTD protein beverages. These products provide consumers with flexibility in terms of portion size, flavor customization, and versatility in usage, such as blending with fruits, vegetables, or dairy alternatives. For consumers who prioritize flexibility and control over their protein intake, protein powders and shakes may be preferred over pre-packaged RTD beverages.

  Natural food sources rich in protein, such as nuts, seeds, dairy products, and legumes, pose indirect competition to RTD protein beverages. With the rising popularity of whole food-based diets and clean eating trends, some consumers may opt for these natural sources of protein over processed beverage options. RTD protein beverage manufacturers must address this competition by emphasizing the unique benefits of their products, such as convenience, portability, and specific nutritional formulations tailored to consumer needs.

  In navigating the competition from alternative protein sources, RTD protein beverage companies can differentiate their offerings by highlighting the convenience, taste, and nutritional benefits of their products. Additionally, investing in research and development to innovate new formulations, flavors, and functional ingredients can help capture consumer interest and loyalty in a crowded marketplace. Strategic marketing efforts that emphasize the unique selling propositions of RTD protein beverages, such as targeted messaging to fitness enthusiasts, on-the-go consumers, and those with specific dietary preferences, can also enhance brand visibility and competitiveness.

Opportunities:

• Expansion into Niche Markets
• Personalization and Customization

• Online Retail and Direct-to-Consumer Channels - In the dynamic landscape of the global RTD protein beverages market, online retail and direct-to-consumer channels have emerged as pivotal avenues for companies to engage with consumers and drive sales growth.

  The rise of e-commerce platforms has revolutionized the way RTD protein beverages are bought and sold. Online retail channels offer convenience and accessibility, allowing consumers to browse a wide range of products, compare prices, and make purchases from the comfort of their homes. This shift towards online shopping aligns with the preferences of digitally-savvy consumers who value convenience and seamless transactions.

  Direct-to-consumer (DTC) channels provide RTD protein beverage brands with a direct line of communication with their customer base. By bypassing traditional retail intermediaries, companies can establish closer relationships with consumers, gather valuable feedback, and tailor marketing efforts to specific target demographics. DTC models also offer opportunities for customization and personalization, enabling brands to deliver unique experiences that resonate with individual preferences.

  The digital landscape facilitates innovative marketing strategies that leverage social media, influencer partnerships, and targeted advertising to reach and engage with consumers. Through compelling storytelling and interactive content, RTD protein beverage brands can create brand awareness, foster loyalty, and drive conversion across online platforms. Embracing online retail and DTC channels empowers companies to adapt to evolving consumer behaviors and capitalize on the vast opportunities presented by the digital marketplace.

Key players in Global RTD Protein Beverages Market include

• Abbott
• CSC BRANDS
• Glanbia
• Kellogg
• PepsiCo
• The Coca-Cola Company

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis