Café chains bet on protein drinks as whey costs surge and India’s market expands
Chaayos, Tim Hortons India and Tata Starbucks are adding protein beverages as demand moves beyond gym users. The ₹15,300-crore Indian protein market is projected to reach ₹21,000 crore by 2031, spurring dairy capacity, partnerships and M&A despite a four-fold rise in whey prices.
What happened
Indian cafe chains Chaayos, Tim Hortons India and Tata Starbucks are launching protein beverages as demand broadens beyond gym users. High whey prices and
Key facts
- Whey protein prices increased four-fold
- India protein market valued at nearly ₹15,300 crore in 2025
- India protein market projected at ₹21,000 crore by 2031
- Milky Mist commissioned a ₹40-crore plant
- USV acquired 79% of Wellbeing Nutrition for ₹1,583 crore
- Arboreal Bioinnovations raised ₹230 crore
- Provilac raised $14 million
- At least four digital-first protein-brand deals are in the market
Why this matters
Target partnerships or acquisitions in dairy processing, protein ingredients and ready-to-drink capabilities to secure supply and capture the mainstream protein occasion.
What to watch
- Retail and foodservice whey-protein price movements, import costs and domestic dairy procurement trends.
- Menu rollout pace and protein-gram claims from Starbucks India, Tim Hortons India, Chaayos and major QSR competitors.
- Consumer repeat rates outside fitness-heavy locations, especially morning commute and office-district stores.
- Growth in plant-protein launches or hybrid dairy-plant formulations, indicating substitution pressure from whey inflation.
- New dairy-processing capacity, co-manufacturing agreements, strategic investments or M&A involving nutrition and café operators.
- Regulatory scrutiny of protein labeling, nutrition claims, added sugar disclosure and supplement-like positioning.
- Launch a tiered protein beverage architecture: accessible 10-15g drinks, premium 20g+ whey-led drinks, and dairy-free alternatives.
- Use limited-time flavor launches in familiar café formats such as iced coffee, mango, chocolate and masala-inspired shakes to normalize trial.
- Secure multi-year whey and milk-protein contracts, while qualifying domestic and plant-protein alternatives to reduce single-input exposure.
- Display protein grams, calorie ranges and ingredient source prominently; avoid broad wellness claims that invite credibility or compliance risks.
- Bundle protein beverages with breakfast and afternoon snack items to create new occasions instead of cannibalizing core coffee purchases.
- Partner with gyms, corporate wellness platforms, colleges and quick-commerce channels to extend discovery beyond café footfall.