There’s an increasing surge among European poultry and dairy producers as demand for high-protein diets soars globally. UK meat supplier Cranswick Plc noted a standout performance in its high-end offerings, attributed to a heightened consumer preference for protein-rich food. Swiss dairy firm Emmi AG also revised its sales forecasts upwards, citing the global push for wholesome, natural, and protein-rich foods, a category witnessing an annual growth exceeding 20%. Notably, Ireland’s Glanbia Plc, renowned for its nutritious products, echoed this optimism, presenting its protein supplements, healthy nibbles, and multivitamins as appealing choices for athletes and health-conscious demographics.
A deeper look at the beef sector reveals that despite a significant upswing in prices, consumer demand for protein continues to hold, vindicating the belief that meat is trending up from a health aspect. However, these observations and the positive resultant forecasts from these smaller firms present a starker contrast against the recent reports from Europe’s dominant snack, chocolate, and liquor manufacturers, currently grappling with dwindling volumes in the wake of price normalization in the food sector.
The accelerated use of anti-obesity medications presents a significant obstacle, proving to be more of a hurdle than an opportunity for corporations such as Nestlé, Lindt & Spruengli AG, Heineken, and Smirnoff’s parent company, Diageo. While Nestlé and the like have responded by introducing new offerings that cater to this expanding consumer sector, such as smaller packaging and high-protein goods, these changes have yet to substantially impact their profitability.
Contrastingly, Danone SA, Nestlé’s smaller competitor, is weathering the storm rather well by focusing on driving growth through its dairy products, like its Activia yogurt brand. It’s noted that roughly a third of those consuming GLP-1 drugs renounce sugary treats, snacks, and alcohol during and post treatment.
The implications of a 20% or 30% reduction in these companies’ profits, unfolding over half a decade or longer, will be tough to mitigate, even with the introduction of new products. This shift is reflected in Nestlé and Heineken’s recent experience of a downtrend in volumes throughout the second quarter.
Giving credence to the notion of future vulnerability is the slashed growth assumption for organic sales for European consumer staple companies in 2025, now down to 3.2% from a prior forecast of 4.1%. This shift from extravagance isn’t confined to users of weight reduction medications, as more of the younger demographics overall adopt healthier habits and a more restrained lifestyle.
Youngsters are consuming less alcohol while GLP-1 usage also discourages consumption. This coincides with an accelerating shift towards protein-centric diets. This has significantly impacted certain sectors, especially dairy and yogurt, which were in decline a few years ago but are now witnessing a resurgence due to this trend.
This protein demand wave is fueling much of Emmi’s expansion. According to a report by Ocado Group Plc, internet queries for protein-rich foods more than doubled in 2025 compared to the previous year. Research by Renub suggests that the protein market across Europe is predicted to grow from roughly $5.7 billion in 2024 to $9.3 billion by 2033.
However, Big Food finds it challenging to adapt to changing consumer behavior, essentially creating openings for protein-focused stocks to seize these current market opportunities. Often when such severe industry shifts happen, incumbent corporations are sluggish to adapt, unlike smaller, entrepreneurial firms that are nimbler, quickly introducing new offerings and addressing evolving consumer preferences.
Emmi, for instance, recently introduced protein water, expanded its meal replacement range with a strawberry variant, and invented two novel renditions of its high-protein ready-to-go Caffè Latte blend. Dairy’s amazing versatility enables us to create a broad array of products that cater to this growing protein demand.
As a result, major food and drink makers may find their defensive positions at risk, with no visible prospects for the next wave of growth. With the rising uptake of GLP-1 drugs, reduced consumption by younger generations, and stiff competition from emerging startups, it remains unclear how they will be able to revive volume growth.
In the absence of this growth and constrained capacity to lift prices due to the possibility of consumer backlash, these firms face a future characterized by stagnating or declining revenues. In the present outlook, there are few reasons to be optimistic in the mid- to long-term.
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