Bengaluru: As whey protein prices rise amid supply constraints, food and nutrition companies are turning to fermented yeast protein to diversify their offerings and cater to consumers seeking alternatives to conventional dairy-based supplements.
The latest to enter the yeast-based protein supplements space is Hindustan Unilever Ltd (HUL), which has launched Horlicks Protein in ready-to-drink and powder formats, extending the brand beyond its traditional children’s nutrition portfolio. The company is betting on its established nutrition credentials, distribution network and accessible pricing to make protein part of everyday diets rather than limiting it to sports and gym enthusiasts.
“Being late to a party doesn’t mean that you’re not there,” said Rajneet Kohli, executive director of HUL’s foods division.
HUL is “153-year-long association with nutrition” to attract consumers who may not have previously purchased supplements. Its protein powder sachets are priced at around ₹83 a serving, while its ready-to-drink shake costs ₹120.
Kohli estimates that only about 3% of Indian households consume protein products. “Our job is to expand the category,” he said.
For its new range, has opted for fermented yeast protein, which Kohli said offers the required protein quality while balancing cost and digestibility. Unlike fermented yeast protein, whey protein is derived from milk and may not be suitable for consumers who are lactose intolerant.
India’s protein supplements market was valued at ₹7,461 crore in 2024 and is projected to reach ₹13,186 crore by 2033, at a compounded annual growth rate of 6.6%, according to the India Brand Equity Foundation. Average daily protein intake, however, remains at 47g per person, below the ICMR-recommended 60g.
The report said that affordability is a challenge, particularly with imported supplements remaining expensive. Lower-priced sachets and protein-fortified everyday foods could help expand consumption beyond traditional sports nutrition. Demand for plant-based, fermented yeast and ready-to-drink products is also growing.
The shift comes as whey protein, a key ingredient in conventional supplements, becomes more expensive. Industry executives said whey protein powder now costs more than ₹4,500 a kg, up from around ₹1,000 in 2023. Supplement-grade whey concentrate has climbed from about ₹4.5 lakh a tonne in mid-2023 to nearly ₹30 lakh a tonne now.
Whey is recovered from milk during cheese production. India produces large volumes of but relatively little cheese, leaving supplement makers dependent on overseas suppliers for whey ingredients.
Yeast-based protein is gaining traction as a middle ground between dairy-based proteins, which could cause digestive discomfort, and plant-based proteins, which could have taste and texture limitations. This is prompting brands to explore alternatives such as fermented yeast protein, produced through controlled fermentation rather than extracted from dairy.
Marico’s Cosmix began with plant-based supplements before expanding into fermented yeast protein. In January 2025, it introduced a plant-and-yeast protein blend and subsequently developed a dedicated yeast-protein range using its proprietary Fermagut fermentation process. Marico acquired a 60% stake in Cosmix Wellness for ₹226 crore in February, valuing the company at about ₹375 crore.
Ranveer Singh-backed SuperYou was among the early entrants in the category. It entered the market when protein supplements were largely associated with whey, aiming to offer consumers another option.
“As a brand, our goal is to offer good options across the whole spectrum for the consumer and let the consumer choose,” said Nikunj Biyani, co-founder of SuperYou. The company is also developing yeast and whey innovations, including yeast-protein biscuits.
Its yeast-protein range has recorded repeat purchase rates of more than 60% and contributes significantly to revenue, Biyani said, without disclosing its share.
However, yeast protein is also facing cost pressures. Prices have risen 20% over the past six months, Biyani said.
The company currently imports its yeast protein but has identified an Indian manufacturing partner. Biyani said domestic quality is comparable, although production has yet to scale up. Local manufacturing requires significant capital investment, and the company is working with partners to develop the supply chain.
Mille, another brand exploring fermented yeast protein, said its decision was driven by product performance rather than cost. Co-founder Shauravi Malik said the company experimented with plant protein but struggled with taste.
“Most plant protein does not taste great, so it didn’t happen,” Malik said. Yeast protein, she added, met the company’s nutrition and taste requirements. “Price wasn’t the reason that we landed with using it.”
Mille’s protein powder has a repeat purchase rate of about 45% and contributes around 25% of revenue, Malik said. The brand is also exploring protein-rich savoury products that fit more naturally into Indian eating habits.
Mumbai-based The Good Bug is yet another entrant in the fermented yeast protein space, joining a growing set of brands seeking to offer alternatives to whey and plant-based supplements. Co-founder Keshav Biyani said plant proteins gained traction as whey prices rose and consumers reported digestive discomfort, but their taste and texture made them difficult to position as direct substitutes.
“Plant protein doesn’t taste good. They don’t have the same smoothness, and it’s chalky,” he said.
Yeast protein, Biyani said, offers an amino-acid profile closer to whey than plant proteins, alongside a smoother texture and better digestibility. “Yeast solves for that,” he said. The ingredient sits “in the sweet spot of whey and plant” protein.
Cost is another consideration. Industry estimates suggest yeast-protein raw material costs about ₹700-800 per kg at scale, compared with ₹2,800-2,900 for whey-protein raw material. Yeast-protein products are priced at around ₹2,000 per kg, against roughly ₹4,500 for whey-based products. Lower input costs could give brands greater headroom to improve gross margins or offer more competitive pricing, with potential savings of around ₹2,000 per kg of protein input, although actual margin gains would depend on other manufacturing and operating costs.
The Good Bug is positioning its offering around digestive comfort. Biyani said the company uses digestive actives intended to help consumers absorb the product better.
The brand began selling about 35 tonnes a month last month, he said. Demand for yeast protein has picked up in recent months, although supply-demand gaps continue to constrain sourcing at scale.