Competition in Korea's protein drink and shake market is spreading across the retail sector beyond dairy and food companies. The market has grown as people of various ages have recently been buying these products for weight management, after they were primarily used in the past to supplement protein after workouts.
According to a protein food newsletter published on the 11th by Korea Agro-Fisheries & Food Trade Corporation (aT), the domestic protein food market, which was 81.3 billion won in 2018, increased about 5.5 times to 450 billion won in 2023. This year, it is projected to reach 800 billion won, up 77.8%.
Rising interest in exercise and health has also contributed to more people drinking protein beverages to build strength. Protein drinks are known to keep you full longer and raise basal metabolic rate, making them effective for weight loss and management.
In Korea, the market was first entered by the dairy and confectionery sectors, starting with Maeil Dairies Co.'s "Selecs" released in 2018, followed by Ildong Foodis' "Hi-Mune," Binggrae's "The:Protein," and Namyang Dairy Products' "Take Fit." Recently, food companies and convenience store chains have also joined the competition.
CJ CheilJedang partnered with Olive Young to launch the protein lifestyle brand "Danbaekhani" and released "Danbaekhani Protein Shake" in Nov. last year. CU, the convenience store operated by BGF Retail, introduced three private brand (PB) protein drink "Protein Shake" products this year. Seven-Eleven also released two "Maeil One-Meal Protein Shake" products on the 4th.
Manufacturers such as Maeil Dairies Co. and CJ CheilJedang have moved to secure competitiveness by leveraging brand image. Retailers are competing by strengthening price competitiveness through PB product development. Beyond protein drinks, product categories are diversifying into protein bars, snacks, and granola.
Actual sales are also on the rise. A Maeil Dairies Co. official said, "Selecs protein beverages are selling well, especially the 250 mL and larger sizes. Cumulative sales from January to November last year increased about 16% from a year earlier." During the same period, protein drink sales at CU convenience stores rose 31.2%. Sales at GS25, operated by GS Retail, also increased 20%.
An industry official in the dairy sector said, "As interest in milk cools and tariff exemptions on imported milk make the domestic market tougher, the dairy industry is bolstering its lineup of health functional foods such as protein drinks to find a breakthrough," adding, "In a situation that requires portfolio diversification beyond milk products, the protein drink market is steadily growing in size, and we have to compete not only with other dairy companies but also with players in other industries to gain a head start."
A food industry official said, "If the existing protein drink market grew mainly on demand from people who enjoy exercise, the market will likely keep expanding on rising nutrition supplementation needs from a growing middle-aged population and aging," adding, "A market that had grown around simple protein-content beverages is now seeing fierce competition targeting specific demand, such as low-sugar, high-protein products."
While the market had centered on drinks with around 20 g of protein, demand has recently been rising for high-protein drinks in the 40 g range, intensifying competition in high-protein products. Orion launched "Dr. You PRO Protein Drink 40 g Choco," which contains 40 g of protein, last year and surpassed cumulative sales of 2.5 million bottles in six months. Namyang Dairy Products' "Take Fit Monster" is considered the industry's highest-protein product, containing 43 g of protein.
A food industry official said, "There is a perception that protein drinks do not taste good, so taste will be an important factor in future competition."