The demand for high-protein yogurts in the U.S. has reached a point where manufacturers like Danone are struggling to keep up. Danone, known for brands like Activia and Oikos, is facing a shortage in manufacturing capacity as the popularity of high-protein yogurts continues to rise.
Juergen Esser, Danone Group Deputy CEO, and chief financial, technology, and data officer, highlighted the challenges the company is facing during a recent investor call. He mentioned that the high-protein yogurts are flying off the shelves, but the lack of production capacity is hindering Danone from meeting the demand. This shortage has also affected the rollout of new innovations in the rest of the yogurt portfolio.
The surge in demand for protein-rich products can be attributed to the increasing focus on health and wellness among consumers. Companies across the food industry are incorporating protein into various products to cater to this trend. Yogurt, in particular, has seen a significant boost in sales due to the protein craze.
Danone has been working to meet the demand by launching new products like high-protein shakes. However, despite their efforts, the company is struggling to secure enough manufacturing capacity to keep up with the consumer demand. Esser acknowledged the tense supply situation in the third quarter but expressed optimism that more capacity would become available in the coming months.
In the U.S., Greek yogurt accounts for half of Danone’s portfolio, with a focus on high-protein offerings. The company recently introduced a high-protein Oikos yogurt shake targeted towards consumers using GLP-1 medications for weight loss. Danone is strategically selling these products in select retailers to gauge consumer interest before scaling up production in 2026.
To address the capacity constraints, Danone is expanding production facilities across the U.S. In August, the company announced a significant investment in its Minster, Ohio, plant to accommodate the growing demand for yogurt products. Despite the challenges, Danone remains optimistic about the potential for growth in the protein market, which is valued at over $114 billion and is expected to continue growing in the coming years.
Overall, the shortage in manufacturing capacity is a hurdle that Danone and other dairy companies are facing as they strive to meet the increasing demand for high-protein yogurts. However, with strategic investments and a focus on innovation, these companies are working towards overcoming these challenges and capitalizing on the lucrative protein market.
