Danone Enhances Protein Strategy to Address Growing Demand for High-Protein Dairy Products

Danone Intensifies Focus on High-Protein Dairy Segment

French dairy giant Danone is ramping up its efforts to capture the growing consumer interest in high-protein dairy products. The company has announced a comprehensive strategy aimed at enhancing and expanding its protein offerings, aligning with the increasing global demand for nutritious, protein-rich foods.

Expanding Protein Offerings Across Key Markets

Since the beginning of the year, Danone has seen significant growth in yogurt sales across Europe and the United States, both in terms of volume and value. Protein has been a key growth driver, with high-protein yogurts and desserts leading the way in the broader protein-rich segment. Danone’s low-sugar brand, Too Good, has become the company’s most successful new brand in the US over the past decade, reflecting strong consumer demand for low-sugar, high-protein dairy products.

Capitalizing on a €60 Billion Market Opportunity

The high-protein dairy category represents a €60 billion ($64.4 billion) market opportunity, growing at high single-digit rates. Within this market, protein-rich yogurt and desserts form a €9 billion ($9.6 billion) segment, experiencing double-digit growth. Consumer interest in protein remains robust, with 84% of health-conscious shoppers considering protein an important part of their diet and 64% actively incorporating more protein into their daily routines.

“More than eight out of ten health-conscious consumers are interested in the quantity and quality of proteins in their diets,” said Shane Grant, Group Deputy CEO of Danone, during a recent capital market event. “This marks a 10% increase compared to 2021. Protein addresses a wide array of needs, from proactive health, like fitness and performance, to reactive health, like weight management and wellness, across all life stages and lifestyles.”

Identifying and Targeting New Consumer Needs

Danone is already well-established in the high-protein consumer, lifestyle, and performance dairy segments, but the company sees further opportunities to refine its product offerings. Shane Grant highlighted the need for products that provide satiety, balanced nutrition, and clean ingredients. To meet these specific consumer demands, Danone is expanding its protein strategy, focusing on low-sugar, high-protein formulations.

One area of particular focus is the low-sugar, high-protein segment. Danone’s Too Good brand has been a major success in the US. To build on this momentum, Danone will launch an expanded Too Good line, featuring zero-sugar options, mix-ins, fruit-on-the-bottom, smoothies, and yogurt pouches for kids.

Expanding the Skyr Range in Europe

In Europe, especially in France, Danone’s Skyr product range is experiencing renewed interest. The company plans to scale up this range with a comprehensive marketing campaign timed with the upcoming Olympic Games in Paris. Skyr products, marketed as fat-free and protein-rich, will include a variety of fruit-flavored and plain options in both drinkable and spoonable formats.

Strengthening the High-Protein Performance Portfolio

Danone’s high-protein performance portfolio has more than doubled in net sales over the past three years, growing from €400 million in FY21 to over €1 billion. This category has driven significant growth, particularly through the Oikos Pro yogurt line, which has been a standout performer.

Pablo Perversi, President of Europe at Danone, attributed this success to shifting consumer attitudes towards health and wellness and Danone’s regional approach, which has enabled more effective deployment of initiatives. Moving forward, Danone plans to optimize and expand its Oikos Triple Zero and Pro offerings in the US, enhancing recipes and reinforcing Pro’s messaging on boosting strength. The company also sees potential growth in its snacking yogurt range, Remix, to increase consumption occasions.

Expanding Danone’s Global Reach

Shane Grant concluded the event by emphasizing the potential of Danone’s protein platform: “This is about execution fundamentals and broadening the reach of our protein platform into new segments and propositions. In the last 18 months alone, we have added 13 new countries to our Pro platform. This model will drive new protein platforms to scale faster and with more impact.”