Yeast protein gains ground as brands seek alternatives to costly whey

HUL is leveraging Horlicks’ “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.

For its new range, HUL 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.

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.

“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.

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.

“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.

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.

Vaeshnavi Kasthuril

Vaeshnavi reports on the business of consumption from Bengaluru, tracking how India shops, eats, and clicks. As a correspondent with Mint’s consumer economy team, she covers sectors ranging from retail and food and beverage to the rapid rise of quick commerce. She is a 2025 graduate of the Asian College of Journalism’s Bloomberg Business and Finance programme. She joined the Mint newsroom in May 2025 and this is her first stint in journalism. She holds a bachelor's degree in accounting and finance from the University of Madras. Vaeshnavi loves storytelling and breaking down complex jargon and numbers to bring out insightful yet simple-to-understand narratives. She is a Malayali but has spent most of her life living in Chennai. During her school days, she was an avid debater and loved participating in anything that involved holding a mic and standing on stage talking to a room filled with people. A diehard SRK fan, she can be found vibing to Indie music and Bollywood songs in her free time. She is a self-confessed cold coffee addict who won’t let a day pass without one, and is always café-hopping in search of the city’s best brew.