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Investors Should Watch Out For The Next Trend: High Protein Food
Lauren Brandy, packaged food research analyst, said in a Euromonitor video report that almost every yogurt brand in Western Europe and North America released their own version of Greek-style yogurt in the past year or so.
She believes there is a strong shift of high protein food from the sports nutrition industry to the mainstream food market, especially in packaged goods.
Brandy said Greek-style yogurt is known for having higher protein and lower fat content, as well as having a thicker and indulgent consistency.
Companies riding the protein bandwagon are seeking to push innovations to improve their value growth.
While the shift is mostly seen in dairy products, other packaged foods are expected to join in on the trend.
A high protein diet has long been popular among athletes. High protein food has always been a part of sports nutrition. From protein shakes to protein bars, high protein food are believed to help boost muscles and sports performance.
Protein is the largest component of the body after water. It represents about 15% of a person’s body weight and most of it is in the skeletal muscle.
High protein diets are also believed to be effective in shedding fat and retaining muscle mass.
A study by FASEB Journal revealed that participants who doubled up on their protein intake lots the most fat although they lost the same weight as others following another weight-loss diet. Based on the test, 70 percent of their total weight loss was made up of fat, compared to the other group’s 41.8 percent.
In addition to dairy products, cereals are the next in line.
General Mills (NYSE:GIS) recently launches a new cereal called Cheerios Protein made from granola clusters.
The company, in a release, said the product targets health-conscious customers preferring the convenience afforded by packaged food without compromising health.
A shift to higher-value products is spot on with the improving economy. As incomes rise and job outlook improves, consumers lean towards products that offer more than the usual fare.
In the soup segment, for example, recent market research predicts volume sales to dip but sales value to increase for the next few years as the US economy continues to recover from the recession.
Companies like The Original Soupman (OTC: SOUP) rank consistently high in websites like ShopWell because of its gourmet soups being an “excellent source of protein” amid being low in cholesterol. Such companies
Investors should also watch closely for popular Greek yogurt brand Chobani, which is poised to go public soon. The company recently moved from New York to Delaware where more than half of Fortune 500 companies are because of the state’s corporate-friendly laws, according to the New York Post.
PepsiCo’s (NYSE: PEP) Quaker Oats also has its own line of protein-packed food in the form of granola bars and oatmeals.
Datamonitor’s Product Launch Analytics database said “high protein” claims is at its highest in 2013 and this had in fact translated to product sales.
For companies like Chobani and Soupman that have inherently high protein products but have yet to bank on the trend as advertising leverage, much is expected once they tap into their brands’ potential.